Cost Estimation Review Training and Support for JIEDDO Acquisition Oversight Division Project Kickoff

These countries face challenges such as low electricity coverage, supply not meeting demand growth, and poor operating and financial performance. The power sector in developing countries is characterized by low electricity prices, high subsidies, and high public debt. Utilities in these countries often require assistance with breaking the cycle of physical and commercial decline while adapting to emerging "forces of change" in the power sector. The cycle of physical and commercial decline is driven by factors such as under-pricing, unaccounted losses, and collection inefficiencies. In Africa, power sector losses as a percentage of GDP are significant, with preliminary results from the AICD 2008 study showing losses ranging from 0.5% to 4.5%. To address these challenges, USAID works to reform utilities through various means, including the adoption of new technologies and systems, sector structure, regulation, and governance arrangements, corporatization and commercialization, management contracts, concessions, and divestiture. The Reform Pyramid outlines the key components of utility reform, which are critical for developing countries to converge on the future of the global grid. The future state of the global power system is characterized by smart metering, distributed generation, distributed storage, more renewables, and deregulation. To achieve this future state, utilities must adapt to the "forces of change" in the industry, including increased grid digitization, changing supply technologies, storage, localized power supplies, new legal and regulatory frameworks, and the increasing role of the customer. The SRUC initiative aims to equip participants with tools and knowledge immediately applicable upon returning to their respective organizations. The training objectives include understanding the current state of the utility sector, forces of change at play in the industry, and potential impact, as well as discussing resources, tools, and capacity required by represented organizations and their counterparts to respond to changes and improve power sector performance. The training also aims to examine in detail the key drivers of change and equip participants with knowledge and tools to address these challenges. The SRUC initiative recognizes the importance of understanding the current state of the utility sector and the forces of change at play in the industry. The initiative also acknowledges the need for utilities to adapt to emerging trends and disruptors, such as smart metering, distributed generation, and more renewables. By equipping participants with knowledge and tools, the SRUC initiative aims to support the development of a more sustainable and resilient power sector in developing countries.