IESE Insight
Compagnie Ivoirienne d'Électricité: Delivering Electricity for All
Fecha: 09/07/2019
Autor / es: Pelizan, Leticia; Rahnema Alavi, Ahmad
Tipo de documento: Occasional Paper
Colaborador / es: Cátedra Fuel Freedom de Energía y Desarrollo Social
Áreas:
Departamento: Financial Management
Idiomas: English
Referencia: OP-314-E

In 2013, Leandre N?Dri, director of general studies and strategic planning at the Compagnie Ivoirienne d?Électricité (CIE), received a request to meet urgently with the energy minister?s team to discuss the problem of the lack of electricity access still faced by a huge part of the population in Ivory Coast. Indeed, despite the fact that the Ivorian power system was one of the most extensive and reliable in sub-Saharan Africa, with more than 74% of the population living in electrified communities, just 23 % of the households were actually connected. N´Dri has an opportunity to prove that the CIE, a private utility company operating the state-owned electricity grid, could be part of the solution of this historic problem. N´Dri is fully committed to proposing a sustainable plan to bring electricity for all, but to do so he will have to understand the underlying causes of the problem and be creative to overcome the financial limitations of a low-income population and of an indebted power system.

 

Objetivo pedagógico

To use as a case study to discuss, in general: 1) the problems related to energy poverty and the lack of electricity access in low-income countries; 2) the structure of the power system and the challenges to make it technically and financially sustainable; 3) the differences between regulated and non-regulated energy activities and between monopolistic and market activities; 4) the nature of electricity services as public service and the role of the state and private companies; 5) alternatives to provide services to low-income clients. In specific, to use as a case study where the students should take N´dri position and give responses to the following issues: 1) why and how CIE should be committed (or not) in leading the search for solutions 2) what should the main criteria be to propose a plan to solve the problem; 3) identify the root causes of the problem of lack of electricity in Ivory Coast; 4) propose alternatives to solve each one of the challenges identified, especially the lack of resources to finance a massive plan and how to overcome the budget constraints of low-income customers 5) understand why the previous initiatives were not effective.

© IESE Business School - University of Navarra