I M POWER PLC 107 Cheapside, London, EC2V 6DN Tel: 020 7397 2811 Fax: 020 7834 7661 Email: info@impowerplc.com

Analyst Reports

Information about the future of energy sources throughout the world.

In the past 20 years many of the more developed countries in the world have seen the widespread adoption of generation addition by the so-called Independent Power Producer (IPP) route, using commercial sources for non-recourse debt funding. Doubts over the enforceability of contracts, and regulatory and political stability have slowed the penetration of IPP projects into less-developed countries. Nevertheless, a wide range of international agencies, such as the World Bank's International Finance Corporation, and governments in smaller countries have come to grips with these issues in recent years. In countries such as Nigeria (admittedly one of the bigger in these regions) there has been a dramatic change in the regulatory environment in the past three years, aimed at creating suitable conditions for investment in building power generation plants. Other smaller countries are following. Many countries are now moving to create conditions that allow investor organizations which understand the anatomy of commercially-financed power generation projects to develop bankable projects.

International Energy Agency

Energy is a critical enabler. Every advanced economy has required secure access to modern sources of energy to underpin its development and growing prosperity. In developing countries, access to affordable and reliable energy services is fundamental to reducing poverty and improving health, increasing productivity, enhancing competitiveness and promoting economic growth. This is because it is essential for the provision of clean water, sanitation and healthcare, and provides great benefits to development through the provision of reliable and efficient lighting, heating, cooking, mechanical power, transport and telecommunication services.

Modern energy services enhance the life of the poor in countless ways. Electricity provides the best and most efficient form of lighting, extending the day and providing extra hours to study or work. Household appliances also require it, opening up new possibilities for communication, entertainment, heating etc. It enables water to be pumped for crops, and foods and medicines to be refrigerated. Modern cooking facilities have the potential to significantly reduce the daily exposure of households (particularly women and children) to noxious cooking fumes – helping to avoid premature deaths caused by indoor air pollution. They can also help remove the burden of spending hours every day travelling long distances to gather fuelwood. And modern energy can directly reduce poverty by raising a poor country’s productivity and extending the quality and range of its products – thereby putting more wages into the pockets of the deprived. For instance, mechanical power can benefit agriculture (ploughing, irrigation) and food processing (otherwise, a laborious and time consuming job), textiles and other manufacturing.

Each year, 4.3 million premature deaths can be attributed to household air pollution resulting from the traditional use of solid fuels, such as fuelwood and charcoal. This figure is much higher than previous estimates, primarily due to the inclusion of new diseases, such as cardiovascular disease and lung cancer.

Source: IEA

Click here to read more

World Electricity Outlook 2014

Worldwide 1.3 billion people – a population equivalent to that of the entire OECD – continue to live without access to electricity. This is equivalent to 18% of the global population and 22% of those living in developing countries. Nearly 97% of those without access to electricity live in sub-Saharan Africa and developing Asia. The latest estimate for sub-Saharan Africa has been revised up by 22 million, illustrating how rapid population growth can continue to outpace the rate of electrification in many countries and conceal the progress that has been made. In developing Asia, the general trend shows an improving picture, but the pace varies. The largest populations without electricity are in India, Nigeria, Ethiopia, Bangladesh, Democratic Republic of Congo (DR Congo) and Indonesia.

Nearly 2.7 billion people – almost 40% of the world population and about half of those living in developing countries – rely on the traditional use of biomass for cooking, an increase of 38 million compared with last year. Here, the issue is much more skewed towards developing Asia, which accounts for nearly 1.9 billion of the total. India, alone, has more than 800 million people using inefficient, polluting means for cooking – a greater number than in the whole of sub-Saharan Africa.

Source: WEO 2014 Electricity database