Sudan’s electricity sector is operatingefficiently from the technical stand point, compared toregional standards. However, the sector faces many of theoperational challenges in the management and financialareas, common to countries in the region. The most urgentissue facing the sector is financial sustainability. Anotherissue is that the subsidy does not reach the poor due totheir limited access to electricity. Most electricity accessis provided for urban and relatively rich segments of thepopulation. Electricity access in Kordofan and Darfurregions is particularly limited. The sector has beenconnecting a significant number of customers to the grid,but the increased access has been mostly offset bypopulation growth. In the coming years, sector costs willlikely increase exponentially and may trigger a powercrisis. A range of policy measures can mitigate increases insector costs, including: (a) using low-cost power fromEthiopia and Egypt; (b) redirecting available investmentcapital away from thermal generation to domestic solar andwind generation; and (c) curbing demand growth throughefficiency measures and price signals. Interim tarifftargets will be set by the Government of Sudan to guide theshort-term tariff transition. Finally, the sector needs tostrengthen its planning capacity and corporate governancestructure. Given the current volatility in political andeconomic circumstances, short-term policy actions arecritical to pave the path for sector recovery. Additionalanalysis and technical assistance to help the sectorrecovery will be carried out to inform policy decisions bythe Government of Sudan and engagement by other developmentpartners. In the next phase of engagement, World Bank willreview the energy sector in totality with specific focus on fuels.
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