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Power interruption costs to industries in Cameroon

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  • Diboma, B.S.
  • Tamo Tatietse, T.

Abstract

This study focusses on the estimation of power interruption costs to industries in Cameroon. Those interruptions are the result of perturbations sustained by the power network. A normalised direct worth (NDW) approach was used as a direct method for assessment, while the compensatory estimation method (CEM) was used for indirect assessment. A survey was conducted with a representative sample of industries in Cameroon using a questionnaire as the main research instrument. The results show that power interruption losses are very significant. Using the direct method for assessment, the average outage cost varies from €3.62/kWh to €5.42/kWh for a 1-h interruption and from 1.96/kWh to €2.46/kWh for a 4-h outage. The study finds that advance suspension notices could help in reducing outage costs by 19.83–33%. With the indirect method, the total capital costs and total running costs of generators are approximately €180,040,180.08 and €4,305,510.6, respectively, while the average cost per unused kWh of electricity stands at €3.37/kWh. The study concludes that power interruptions have a significant negative effect on industries in Cameroon.

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  • Diboma, B.S. & Tamo Tatietse, T., 2013. "Power interruption costs to industries in Cameroon," Energy Policy, Elsevier, vol. 62(C), pages 582-592.
    • Handle: RePEc:eee:enepol:v:62:y:2013:i:c:p:582-592
    DOI: 10.1016/j.enpol.2013.07.014
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