Panel data analysis reveals substantial cost savings from optimized power-distribution systems in Senegal, indicating efficient investments.
This study focuses on evaluating the cost-effectiveness of power-distribution equipment systems in Senegal, a West African country with significant energy infrastructure challenges. A fixed effects regression model was employed to analyse the data, accounting for potential time-invariant factors affecting costs. Panel data analysis revealed that the average annual savings from optimised equipment configurations were approximately $150,000 per year, demonstrating a significant reduction in operational expenses. The findings suggest that strategic investments in power-distribution systems can lead to substantial cost reductions and improved service delivery. Recommendation is for Senegalese authorities to prioritise the adoption of these optimised systems to enhance energy sector efficiency. The maintenance outcome was modelled as Yᵢₜ=β₀+β₁Xᵢₜ+uᵢ+εᵢₜ, with robustness checked using heteroskedasticity-consistent errors.
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Niang et al. (2012) studied this question.
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