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Submitted by Jas Singh on
The blog focused on demand-side energy efficiency rather than supply-side efficiency, the latter of which is typically covered under utility investment plans and the Bank's substantial sector reform and utility enhancement programs. For demand-side efficiency, the issue is utility incentives, since many prefer to see increased sales rather than reduced demand. For supply-side efficiency, the issue is regulations. Utilities will only have an incentive to be more efficient if they cannot pass all their ineffiencies on to their customers through their rate structure. For power generation, we encourage utilities to adopt the most efficient technology that is cost-effective.