We are currently having problems with inadequate electricity generation in Ecuador, where drought has weakened hydropower output. What do you think second-best solutions might be for countries in this boat? Waiting for foreign donors/investors/lenders to impose higher prices as a condition of major help? Waiting for solar and batteries to get better/cheaper and replace more of diesel’s role, and also to make generation cheaper for the energy firms so that their deficits are smaller and more bailout funds can be aimed at new investment?
Countries like Ecuador, Colombia, and Nigeria have recently demonstrated courage in reducing motor fuel subsidies (which, in Nigeria, may impact those firms and households who rely on diesel backup). Are electrical price subsidies politically even tougher due to electricity being so much more common than cars in low and middle-income countries?
We are currently having problems with inadequate electricity generation in Ecuador, where drought has weakened hydropower output. What do you think second-best solutions might be for countries in this boat? Waiting for foreign donors/investors/lenders to impose higher prices as a condition of major help? Waiting for solar and batteries to get better/cheaper and replace more of diesel’s role, and also to make generation cheaper for the energy firms so that their deficits are smaller and more bailout funds can be aimed at new investment?
Countries like Ecuador, Colombia, and Nigeria have recently demonstrated courage in reducing motor fuel subsidies (which, in Nigeria, may impact those firms and households who rely on diesel backup). Are electrical price subsidies politically even tougher due to electricity being so much more common than cars in low and middle-income countries?