Energy, especially electricity, is important for economic development. Electricity plays an important role toward economic growth as it is essential in using pieces of equipment that is used for the manufacturing processes of various products (ESMAP 8). The increasing population and expanding economy contribute to the increase in the demand for electricity. Currently, china is the major consumer of electricity. However, the electricity produced in this country is not enough to supply its needs (“Global Energy”). The economic progress could not pursue if there is insufficient amount of energy that any country could use.
Electricity shortage can happen if the available supply in an area cannot meet its demand. If this situation prolonged, the price of electricity might increase. Different countries experience electricity shortage because of the increasing demand for electricity. As the implementing body of a nation, the government has implemented other strategies to deal with the problem such as energy-saving methods and restriction of electricity used. These two have their own advantages and disadvantages but both have been effective in resolving the electricity shortages. Restricting electricity use is an effective solution during sudden electricity shortage but it also causes a lot of disadvantages. The government should not put a restriction on electricity used but encourage consumers to save electricity as an alternative solution since it is effective and beneficial for all consumers. (The last sentence presents the thesis.)
The electricity consumers use different strategies to meet the demand. Some countries seek other alternative sources of electricity and some even developed new technologies. A method implemented by the government in order to meet the electricity demand is regulation electricity through power blackouts. However, this method is not favorable especially to the manufacturing companies. Consumers also used diesel-powered generators to resolve this problem. The disadvantage of using this alternative is the expensive price and production of pollutions (ESMAP 14). It is also only applicable to urbanized areas or in the developed countries.
Economic reasons contribute to the increase in the demand for electricity. Electricity shortage can happen if the producers of electricity are not able to supply the demand of the consumers. Aside from this reason, environmental problems can also cause the increase in the demand for electricity. Ecuador experienced drought in 2009 that caused the restrictions on electricity use. The decrease in water level on the Paute River, which was used to generate hydroelectricity, also caused the restriction. The government had to start a series of power blackouts to decrease the consumption by five percent to ten percent. The implementation of this policy applied to residential users to prevent impacts on business (“Drought”). (The succeeding paragraphs show the situation in different countries when they experienced the electricity shortage and how they deal with it. The following example are separated from this paragraph to show that the ideas shown on those paragraphs is about the situation in the country that is being presented)
In Japan, the electricity demand in 2011 was not able to meet because of the effects of the earthquake and tsunami that hit Japan. Due to this problem, the government implemented rotational power blackout that affected not only the residents but also the economic sector. The government had applied a plan to save energy to solve this problem and prevent the power blackouts caused by electricity shortages. They targeted electricity saving from one percent to fifteen percent in most areas. They also set allowances for other divisions like hospitals and schools. The government also assisted the consumers in saving electricity and continued their information campaigns (Pasquier 10-11). The government also made restrictions on electricity use aside from implementing energy- saving strategies. The electricity business act gives the power to the government to implement the restriction for industry consuming more than 500 KW. Many large companies made adjustments to the work schedule and hours of operation to respond to this policy. Also, they seek advice on how to achieve the energy-saving targets. Additionally, they offered their staff longer summer holidays (Pasquier 11).
In 2004, china experienced a shortage in electricity. This problem caused the government to implement restriction on electricity use. The policy affected about 20 provinces and cities. Also, a number of foreign-owned companies were forced to cut down their consumption which affected their operation (Fang and Zhen). In 2011, the Chinese government implemented restrictions on electricity use again when the water level of the Yangtze River decreased. Aside from low water levels, the high prices of coal also contributed to the shortage in electricity (Areddy). When china faced the electricity shortage in 2003, power blackouts were made in order to deal with the shortage and limit the use of electricity. The government put every household into group to facilitate the rotational power blackout. On the other hand, manufacturing companies used diesel oil generators to continue their operations. However, it resulted in a shortage of diesel oil (Fang and Zhen). Manufacturing companies that are affected by the restriction in using electricity shortened their operating hours to adapt to the change.
In the mid-eastern region of china, a motorcycle producer limits its operation to three days a week. This situation caused the price of their products to increase by 4 percent since there was a decrease in the production. Not only that there was a reduction on the number of product but also the delivery had been delayed (Fang and Zhen). The policy made a big impact on business. Although they found a way to continue their operation by using diesel powered generators, manufactures cannot use this method in long term operations. Also, the use of these generators produces more pollutants than other electricity generators. This impact on businesses also affected the economic sector of china. With this problem, analysts tell that Beijing might push electricity producers to produce more electricity but the operators might also increase the price of electricity due to the expensive cost coal (Areddy).
In Alaska, hydroelectric facilities are the main generator of electricity. In 2008, an avalanche damaged these facilities causing the switch to diesel powered generators. However, the price of diesel was higher than the cost of hydropower. This situation caused the price of electricity to also increase. The new price was too expensive and to avoid it, the government encouraged the consumers to cut down their use of electricity. The government also launched a campaign that advises consumers to save electricity. The campaign had been a success. The electricity consumption had decreased by 40 percent. After the electricity shortage, the consumers still continue their energy-saving methods. This action not only helps them to avoid paying high electricity bills but also help in sustaining the supply of electricity. The energy-saving plan that had been implemented proved that reducing the consumption of electricity is achievable. Also, this strategy can be maintained since the consumers still apply the method after the crisis (Pasquier 11-12).
South Africa experienced electricity shortage in 2008 due to not enough suppy of generation. The increasing demand for electricity was observed when the economy progress. Producers of electricity used other means of generating electricity but they were not enough to meet the demand. Eskom, the South African national electric utility, and the government applied the power rationing and other methods to solve the lack of electricity. The consumers, particularly the industrial sector, used different strategies. The government, together with Eskom, aimed to decrease the demand for electricity by 10 percent. They create the Power Conservation programmed (PCP) which is directed to industrial users. As a result of the PCP, electricity consumption from gold and platinum mines and metal smelters rescued by 1500 MW.
Currently, the government encourages the top 500 consumers of the country to agree with the mandatory energy conservation scheme (ECS) that aims and energy-saving of 10 percent during electricity shortages. This method encourages the setting of baselines and installing equipment that will check and verify the participants’ electricity consumption. Residential consumers can also contribute in reducing the demand for electricity by using energy-saving tools. Eskom, the government and business partners also launched the information campaign called the 49 Million Initiative that encourage residential and commercial consumers to apply energy-saving methods as part of their daily lives (Pasquier 14).
The situation of various countries during the electricity shortages present different strategies they are using in resolving the problem. The Ecuador, Japan and China, their respective governments were forced to restrict the consumption. This plan of action has been reasonable since the calamities that cause the shortages cannot be avoided. However, the policy brought various problems to the consumers of electricity. First, the consumers, particularly the manufacturing companies, decided to use diesel powered generators to supply their need for the electricity. These generators use expensive fuel to operate and cause air pollution.
Second, manufacturing companies shortened their working hours to cut their demand for electricity. This action led to reduction in production as well as increasing the price of their product. Some companies were even forced to be closed. Additionally, longer holiday breaks were given to the employees and it resulted to lower income generation. Lastly, the price of electricity becomes expensive as the demand largely exceeded the supply. These situations present that the economic sector is greatly affected.
On the other hand, energy-saving method is seen as an effective strategy to deal with the sudden crisis in Alaska and South Africa. The government launches campaigns that will encourage electricity users to reduce consumption. They give information to people in various areas with the use of different media such as the television, radio, and newspaper. The government made a multi-dimensional information campaign on energy-saving was with the help of advertising consultancy in Alaska. The campaign includes encouraging the people to wear casual and cooler clothing conducing energy-saving contest for residential consumers, giving forecast on supply and demand on electricity through the web, and giving rewards to the residential and commercial consumers who are able to achieve the energy-saving goals (Pasquier 12).
The government also made projects that can help people to save electricity. The use of energy-saving tools also contributes to the reduction in electricity consumption. Some of the projects that were implemented in South Africa include developing technologies that will make use of lighting efficient, using solar energy for water heating and using aerated shower heads. The government also encourages electricity consumers to check their usage (Pasquier 14). Investing in energy-saving tools can also save consumers in spending money on other high price alternatives such as diesel power generators (Bruce, Yi, and Haites 409). The energy-saving method is applied even after the shortage. As a result, electricity consumption continues to decrease. In this way, people will be prepared when unexpected electricity deficiency is encountered, relying on diesel power generators can be avoided (Pasquier 14).
Although the energy-saving program is a success, some do not follow the campaign. A liberalized sector needs strong demands from the government (ESMAP 24). The government needed a stricter implementation on electricity se to prevent shortage in the future. Also, government must have a fast response when shortage in electricity might happen. The government should made plans immediately to resolve the problem (ESMAP 84). This will be only possible if the government would make a policy that will restrict electricity consumption. Through this plan of action, consumers may also reduce their dependence on the current sources of electricity and may decide to use other methods and alternatives to meet their electricity demands (Van den Bergh and Bruinma 185). Also restricting use is an instant method in resolving electricity crisis especially those which are caused by calamities.
But again, this implementing restriction on electricity use has presented more disadvantages to the consumer. Also, if energy-saving method is previously implemented then, people will be prepared in unexpected shortages. The government should make actions that will address the future needs and can be beneficial to the electricity consumers. Instead of restricting electricity use, the government may request large industries that consume more electricity to make plans and actions that will reduce their consumption. Proper planning and implementation may also prevent future electricity shortage. Scheduling in the power plants is an effective method in the proper use of time and management of generating electricity.
Governments that are prepared and can immediately make solutions for a possible electricity shortage have the higher possibility to sustain the electricity demand of the consumers and also prevent the effects to the economy which may be brought by the unexpected electricity shortage (ESMAP 19). The strategies to be used to meet the demands for electricity do not need to be expensive. Also, the residential sector plays an important role in achieving the target goal of reducing electricity demand.
With the increasing demand in electricity, electricity shortage will continue to take place. The government, and the highest implementing body of a nation, must act to prevent the electricity crisis. One way to prevent this is by allowing the government to restrict the use of electricity but this method brings a lot of disadvantages especially to the major consumers of electricity particularly the manufacturing companies. The disadvantages on the consumers of electricity are particularly the manufacturing companies. The disadvantages on the consumers will also affect other areas particularly the economic sector. It is more effective if every consumer is encouraged to save electricity. With this method, the consumers can choose from different strategies and apply what is convenient for them.
The consumers should not only save electricity during the shortage but also in during the normal situations. Future shortage in electricity might be prevented if the consumers apply this action. The development of technologies initiated by the government can also be a means to meet the current demand for electricity. To solve the problem of electricity shortage, more resources should be developed. Additionally, the existing resources must be allocated properly and must be used efficiently (Fang and Zhen). The governments should not only rely on energy-saving campaign but also start developments of electricity source alternatives to secure the availability of electricity for its consumers. They must also encourage other sectors to join them in this plan of action. Participation of public, industrial and government sectors can help to meet greater results.
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