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http://dx.doi.org/10.13106/jafeb.2020.vol7.no1.111

Resource Use Efficiency of Electricity Sector in the Maldives  

SHUMAIS, Mohamed (Energy Policy Center, Korea Polytechnic University)
Publication Information
The Journal of Asian Finance, Economics and Business / v.7, no.1, 2020 , pp. 111-121 More about this Journal
Abstract
The study measures the resource use efficiency of diesel based power generation in the Maldives and analyses factors which influence efficiency levels. Stochastic frontier analysis (SFA) technique is applied to data on 30 plants over two year period from 2016 to 2017. The study finds that technical efficiency scores varies from 0.44 to 0.98 across power plants. About 33 percent of the plants have scores below the mean technical efficiency score of 0.87. Empirical results indicate ownership and use of solar photovoltaic (PV) have an influence on improving efficiency levels. Privately owned power plants in resort islands obtained higher technical efficiency scores compared to public and community owned power plants. This is a significant finding as the first study that used power plants in tourist sector in a comparative study. Size of the power plants was not found significant, but relatively small installed capacities can also be efficient. This finding is important because in many inhabited islands installed capacities remain oversized compared to the load. The benchmarking exercise offers model power plants that are relatively efficient, for other power plants and policy makers in small islands to learn from.
Keywords
Diesel Power Plant; Efficiency; Electricity; Maldives; Stochastic Frontier Analysis;
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