Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market

Massoud Danishmal; Wahidullah Zgham; Dost Mohammad Sarwari; Zainullah Serat

doi:doi:10.11648/j.ijepe.20221104.11

| Peer-Reviewed

Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market

Massoud Danishmal, Wahidullah Zgham, Dost Mohammad Sarwari, Zainullah Serat

Published in International Journal of Energy and Power Engineering (Volume 11, Issue 4)

Received: 31 August 2022 Accepted: 13 September 2022 Published: 28 September 2022

Views: Downloads:

Download PDF

Share This Article

Twitter
Linked In
Facebook

Abstract

Privatization is one of the measures that the government must implement to reform its economy and administrative system. The development of society has always been accompanied by an increase in demand for electricity. One of the characteristics of a competitive market is the lack of power of market managers to exploit demand fluctuations. In countries where the electricity sector has been privatized, the supply and the bid price of electricity are competitive among suppliers. Electricity manufacturers and suppliers must have a high degree of energy quality in order to be highly reliable in a competitive electricity market. The main purpose of privatizing the electricity sector is to combat undesirable monopolies because imposing the power of a company disrupts a competitive environment in the market. In this article, the necessity and benefits of privatization of the electricity sector in the country and a practical method that in a competitive market, the amount of waste and energy prices are significantly reduced. By privatizing the electricity sector, we can manage the critical situation of the country's energy sector. If the electricity industry is monopolized by the Afghan government, it will not be possible to respond to the needs of society with good quality and reasonable and low prices, and the productivity in this industry will be lower than expected. By carrying out the restructuring of Breshna company, separating Breshna company into three major productions, transmission and distribution companies, creating competition in production and supply, free access, increasing and improving economic productivity in various sectors of the electricity industry, security of supply, reducing losses, consumption management, reducing the cost price, optimal use of financial resources, the balance between income and expenses, increasing the quality of services, developing technology, protecting the environment and the possibility of sustainable development of this industry will be realized.

Published in	International Journal of Energy and Power Engineering (Volume 11, Issue 4)
DOI	10.11648/j.ijepe.20221104.11
Page(s)	83-90
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Competitive Electricity Market, Privatization of Electricity Sector, Healthy Competitive Environment, Energy Quality, Fight Against Monopoly

References

[1]	Najmuddin, Mohammad Hossein and Ehsasi, Nasser, (2003). Privatization in the electricity industry, the 7th national conference on electricity distribution networks, Tehran, https://civilica.com/doc/47443
[2]	Zadran, faiz Muhammad (2021). Look at Afghanistan's energy sector challenges and solutions, Kabul Afghanistan: https://pajhwok.com.
[3]	Azimi, Abdulbasir (2018). Afghanistan electricity depends on the exclusive market, Kabul Afghanistan: https://8am.af.
[4]	Gholipour, Morteza, et al, (2017). Electricity price forecasting using neural networks with an improved iterative training algorithm. International Journal of Ambient Energy, 147-158.
[5]	Heffron J. Raphael, (2015). Energy Law: An Introduction. Springer.
[6]	Belyaev S. Lev (2011). Electricity Market Reforms. Springer.
[7]	ANDS, Energy Sector Strategy (2007/08 – 2012/13). Afghanistan National Development Strategy Secretariat, (2008).
[8]	World Bank, Afghanistan renewable energy development issues and options. Washington, D. C, (2018).
[9]	World Bank, Afganistan economic updated, Washington D. C, (2013).
[10]	NEPA, Second national communication. Kabul: national environmental protection agency, 2-30, (2017).
[11]	ADB, Proposed multi-tranche financing facility Islamic republic of Afghanistan: energy supply improvement investment program. Manila: report and recommendation of the president to the board of directors, (2015).
[12]	Al-Mofleh, S. Taib, M. A. Mujeebu, W. Salah, Analysis of sectoral energy conservation in Malysia. J. Energy, (34) 733-739, (2009).
[13]	Ahady. Shambalid, Dev. Nirendra, Mandal. Anubha, an overview of the opportunities and challenges in sustaining the energy industry in Afghanistan, (2020). https://doi.org/10.1051/e3sconf/202017303006.
[14]	D. Bochkarev, Afghanistan reconnected linking energy supplies to consumers in Asia. Eastwest Institute, (2014).
[15]	MEW, Afghanistan investment opportunities inenergy sector. Kabul: Da Afghanistan Breshna Sherkat, (2017).
[16]	ICE, Number of DABS electricity connection. interministerial commission for energy, (2016). Available on Https://Sites.Google.Com/Site/Iceafghanistan/Electricity-Supply/Connections).
[17]	DABS, Afghanistan energy information center. Kabul: Da Afghanistan Breshna Sherkat, (2016).
[18]	World Bank, Afghanistan overview. Kabul: The World Bank. (2013).
[19]	ADB, Power sector master plan, islamic republic of Afghanistan. Asian development bank. (2010) Available on: Https://Www.Adb.Org/Sites/Default/Files/Project-Document/76570/43497-012 AfgTacr.Pdf.
[20]	USAID, Advisor to the secretariat of the interministerial commission for Energy, Kabul: United States aid for international development, (2010).

Cite This Article

Plain Text BibTeX RIS

APA Style

Massoud Danishmal, Wahidullah Zgham, Dost Mohammad Sarwari, Zainullah Serat. (2022). Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market. International Journal of Energy and Power Engineering, 11(4), 83-90. https://doi.org/10.11648/j.ijepe.20221104.11

Copy | Download

ACS Style

Massoud Danishmal; Wahidullah Zgham; Dost Mohammad Sarwari; Zainullah Serat. Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market. Int. J. Energy Power Eng. 2022, 11(4), 83-90. doi: 10.11648/j.ijepe.20221104.11

Copy | Download

AMA Style

Massoud Danishmal, Wahidullah Zgham, Dost Mohammad Sarwari, Zainullah Serat. Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market. Int J Energy Power Eng. 2022;11(4):83-90. doi: 10.11648/j.ijepe.20221104.11

Copy | Download

@article{10.11648/j.ijepe.20221104.11,
  author = {Massoud Danishmal and Wahidullah Zgham and Dost Mohammad Sarwari and Zainullah Serat},
  title = {Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market},
  journal = {International Journal of Energy and Power Engineering},
  volume = {11},
  number = {4},
  pages = {83-90},
  doi = {10.11648/j.ijepe.20221104.11},
  url = {https://doi.org/10.11648/j.ijepe.20221104.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijepe.20221104.11},
  abstract = {Privatization is one of the measures that the government must implement to reform its economy and administrative system. The development of society has always been accompanied by an increase in demand for electricity. One of the characteristics of a competitive market is the lack of power of market managers to exploit demand fluctuations. In countries where the electricity sector has been privatized, the supply and the bid price of electricity are competitive among suppliers. Electricity manufacturers and suppliers must have a high degree of energy quality in order to be highly reliable in a competitive electricity market. The main purpose of privatizing the electricity sector is to combat undesirable monopolies because imposing the power of a company disrupts a competitive environment in the market. In this article, the necessity and benefits of privatization of the electricity sector in the country and a practical method that in a competitive market, the amount of waste and energy prices are significantly reduced. By privatizing the electricity sector, we can manage the critical situation of the country's energy sector. If the electricity industry is monopolized by the Afghan government, it will not be possible to respond to the needs of society with good quality and reasonable and low prices, and the productivity in this industry will be lower than expected. By carrying out the restructuring of Breshna company, separating Breshna company into three major productions, transmission and distribution companies, creating competition in production and supply, free access, increasing and improving economic productivity in various sectors of the electricity industry, security of supply, reducing losses, consumption management, reducing the cost price, optimal use of financial resources, the balance between income and expenses, increasing the quality of services, developing technology, protecting the environment and the possibility of sustainable development of this industry will be realized.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market
AU  - Massoud Danishmal
AU  - Wahidullah Zgham
AU  - Dost Mohammad Sarwari
AU  - Zainullah Serat
Y1  - 2022/09/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ijepe.20221104.11
DO  - 10.11648/j.ijepe.20221104.11
T2  - International Journal of Energy and Power Engineering
JF  - International Journal of Energy and Power Engineering
JO  - International Journal of Energy and Power Engineering
SP  - 83
EP  - 90
PB  - Science Publishing Group
SN  - 2326-960X
UR  - https://doi.org/10.11648/j.ijepe.20221104.11
AB  - Privatization is one of the measures that the government must implement to reform its economy and administrative system. The development of society has always been accompanied by an increase in demand for electricity. One of the characteristics of a competitive market is the lack of power of market managers to exploit demand fluctuations. In countries where the electricity sector has been privatized, the supply and the bid price of electricity are competitive among suppliers. Electricity manufacturers and suppliers must have a high degree of energy quality in order to be highly reliable in a competitive electricity market. The main purpose of privatizing the electricity sector is to combat undesirable monopolies because imposing the power of a company disrupts a competitive environment in the market. In this article, the necessity and benefits of privatization of the electricity sector in the country and a practical method that in a competitive market, the amount of waste and energy prices are significantly reduced. By privatizing the electricity sector, we can manage the critical situation of the country's energy sector. If the electricity industry is monopolized by the Afghan government, it will not be possible to respond to the needs of society with good quality and reasonable and low prices, and the productivity in this industry will be lower than expected. By carrying out the restructuring of Breshna company, separating Breshna company into three major productions, transmission and distribution companies, creating competition in production and supply, free access, increasing and improving economic productivity in various sectors of the electricity industry, security of supply, reducing losses, consumption management, reducing the cost price, optimal use of financial resources, the balance between income and expenses, increasing the quality of services, developing technology, protecting the environment and the possibility of sustainable development of this industry will be realized.
VL  - 11
IS  - 4
ER  -

Copy | Download

Author Information

Massoud Danishmal

Electrical Power Engineering Department, Ghazni Technical University, Ghazni, Afghanistan
Wahidullah Zgham

Energy Engineering Department, Ghazni Technical University, Ghazni, Afghanistan
Dost Mohammad Sarwari

Electrical Power Engineering Department, Ghazni Technical University, Ghazni, Afghanistan
Zainullah Serat

Energy Engineering Department, Ghazni Technical University, Ghazni, Afghanistan

Download PDF

Sections

Plain Text BibTeX RIS

APA Style

Massoud Danishmal, Wahidullah Zgham, Dost Mohammad Sarwari, Zainullah Serat. (2022). Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market. International Journal of Energy and Power Engineering, 11(4), 83-90. https://doi.org/10.11648/j.ijepe.20221104.11

Copy | Download

ACS Style

Massoud Danishmal; Wahidullah Zgham; Dost Mohammad Sarwari; Zainullah Serat. Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market. Int. J. Energy Power Eng. 2022, 11(4), 83-90. doi: 10.11648/j.ijepe.20221104.11

Copy | Download

AMA Style

Massoud Danishmal, Wahidullah Zgham, Dost Mohammad Sarwari, Zainullah Serat. Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market. Int J Energy Power Eng. 2022;11(4):83-90. doi: 10.11648/j.ijepe.20221104.11

Copy | Download

@article{10.11648/j.ijepe.20221104.11,
  author = {Massoud Danishmal and Wahidullah Zgham and Dost Mohammad Sarwari and Zainullah Serat},
  title = {Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market},
  journal = {International Journal of Energy and Power Engineering},
  volume = {11},
  number = {4},
  pages = {83-90},
  doi = {10.11648/j.ijepe.20221104.11},
  url = {https://doi.org/10.11648/j.ijepe.20221104.11},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ijepe.20221104.11},
  abstract = {Privatization is one of the measures that the government must implement to reform its economy and administrative system. The development of society has always been accompanied by an increase in demand for electricity. One of the characteristics of a competitive market is the lack of power of market managers to exploit demand fluctuations. In countries where the electricity sector has been privatized, the supply and the bid price of electricity are competitive among suppliers. Electricity manufacturers and suppliers must have a high degree of energy quality in order to be highly reliable in a competitive electricity market. The main purpose of privatizing the electricity sector is to combat undesirable monopolies because imposing the power of a company disrupts a competitive environment in the market. In this article, the necessity and benefits of privatization of the electricity sector in the country and a practical method that in a competitive market, the amount of waste and energy prices are significantly reduced. By privatizing the electricity sector, we can manage the critical situation of the country's energy sector. If the electricity industry is monopolized by the Afghan government, it will not be possible to respond to the needs of society with good quality and reasonable and low prices, and the productivity in this industry will be lower than expected. By carrying out the restructuring of Breshna company, separating Breshna company into three major productions, transmission and distribution companies, creating competition in production and supply, free access, increasing and improving economic productivity in various sectors of the electricity industry, security of supply, reducing losses, consumption management, reducing the cost price, optimal use of financial resources, the balance between income and expenses, increasing the quality of services, developing technology, protecting the environment and the possibility of sustainable development of this industry will be realized.},
 year = {2022}
}

Copy | Download

TY  - JOUR
T1  - Privatization of the Electricity Sector in Afghanistan and Its Effects on Reducing Losses and Energy Prices in the Market
AU  - Massoud Danishmal
AU  - Wahidullah Zgham
AU  - Dost Mohammad Sarwari
AU  - Zainullah Serat
Y1  - 2022/09/28
PY  - 2022
N1  - https://doi.org/10.11648/j.ijepe.20221104.11
DO  - 10.11648/j.ijepe.20221104.11
T2  - International Journal of Energy and Power Engineering
JF  - International Journal of Energy and Power Engineering
JO  - International Journal of Energy and Power Engineering
SP  - 83
EP  - 90
PB  - Science Publishing Group
SN  - 2326-960X
UR  - https://doi.org/10.11648/j.ijepe.20221104.11
AB  - Privatization is one of the measures that the government must implement to reform its economy and administrative system. The development of society has always been accompanied by an increase in demand for electricity. One of the characteristics of a competitive market is the lack of power of market managers to exploit demand fluctuations. In countries where the electricity sector has been privatized, the supply and the bid price of electricity are competitive among suppliers. Electricity manufacturers and suppliers must have a high degree of energy quality in order to be highly reliable in a competitive electricity market. The main purpose of privatizing the electricity sector is to combat undesirable monopolies because imposing the power of a company disrupts a competitive environment in the market. In this article, the necessity and benefits of privatization of the electricity sector in the country and a practical method that in a competitive market, the amount of waste and energy prices are significantly reduced. By privatizing the electricity sector, we can manage the critical situation of the country's energy sector. If the electricity industry is monopolized by the Afghan government, it will not be possible to respond to the needs of society with good quality and reasonable and low prices, and the productivity in this industry will be lower than expected. By carrying out the restructuring of Breshna company, separating Breshna company into three major productions, transmission and distribution companies, creating competition in production and supply, free access, increasing and improving economic productivity in various sectors of the electricity industry, security of supply, reducing losses, consumption management, reducing the cost price, optimal use of financial resources, the balance between income and expenses, increasing the quality of services, developing technology, protecting the environment and the possibility of sustainable development of this industry will be realized.
VL  - 11
IS  - 4
ER  -

Copy | Download