What is a power sector cost-benefit analysis (CBA)?

It presents benefits and costs commonly employed in economic analysis across investments in the power sector, issues affecting the economic analysis, and the key technical information, data, and other needs for a full cost-benefit analysis (CBA). It also includes guidance on estimating the number of beneficiaries from power sector investments.

How does economic analysis of power systems work?

As in other sectors, the economic analysis of the power sector depends on the methods used for the economic valuation of the technical performance of the system. For the valuation of social or economic benefits not directly tied to the technical performance of power systems, the reader should refer to other guidance documents.

Should a detailed economic analysis capture the full costs of electricity?

As a detailed economic analysis should capture the full costs of electricity, careful analysis may be required to account for existing (and changes to) subsidy policy to establish the cost-reflective tariff to be used in the economic analysis; similar care should be given to tax policies on electricity substitutes.

What are the components of power prices?

These components are divided into the rate base (i.e. generation, transmission, and distribution and retail), capital cost, and taxes. Factors that affect the magnitude of components are extracted. Finally, results of the analysis for each of this study’s countries are compared. Figure 3-1. Cost Structure of Power Prices Source: Author.

Do electricity rates in Indonesia and Malaysia include subsidies?

8 It should be noted that electricity rates in Indonesia and Malaysia include subsidies. The cost structure of the country’s power distribution/retail companies shows that the power generation cost comprises the largest proportion at 51%.

What is a baseload power plant?

Base load (or baseload) in an electrical grid is the minimum level of demand on an electrical grid over a period (i.e., a week or a year). Some generation power plants are specialized to deliver baseload power: these assets generally have low marginal costs of generation, but often large, fixed costs and slow ramp times.