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Ethical Energy for Belina: Karsson’s Initial Rocommendations

(A) EXECUTIVE SUMMARY

  1. Belina's proposed energy policies stand a chance of handling its latest needs in an appropriate matter that serves the people, especially those that have been neglected in previous policy decisions.
  2. Transferable technologies that attract local investment in local business are important and they help foster strong international commercial relationships for local consumer needs.
  3. Meeting the essential needs of the region within its ethical and environmental frameworks require appropriate stakeholder consultations and an Environmental Impact Assessment.
  4. The initial recommendation for Karsson's internal discussions is the selection of:
    • RelRose: 3x300MW combined cycle units. The first unit will be installation in Phase I and the rest in Phase II.
    • Windiber: 2 wind farms with a combined capacity of 100MW.
    This would provide opportunities for added local expertise, ensure the potential for energy independence, independence in environmental protection and provide for reliable as well as cheap electricity.

(B) INTRODUCTION

Karsson, a major engineering consultancy is providing services on advising the investment in energy technologies that can be disseminated in African countries. This project is focussing on Belina, because of its potential as a base case for future projects, having abundance in natural resources, and with clear skills gaps, most notably only 5,000 graduates, a good opportunity to combine infrastructural improvement with skill development.

The Belina government is proactively seeking international assistance in developing its energy supply systems. Bids are being reviewed by Karsson, who will advise the Belina government during the bid evaluations up to the purchase order phase. Whilst the deterministic factor in winning the work mainly lie in price of supply and the means of provision, the eventual winners of the contracts will need to demonstrate the technical capacity to deal with social and environmental conditions particular to the location, without making generalisations and abstractions (Murphy,2001, p8). Figure 1 depicts how this technical capacity needs to be demonstrated at an early stage:

For the consultation with Karsson's nuclear and fossil fuel proponents, my final recommendation is for the Belina government to award the following contracts:

  • RelRose: 3x300MW combined cycle units. The first unit would be installation in Phase I and the rest in Phase II. The contract would leave provision for an agreement on Belina's preferences on electricity pricing, consumer subsidisation, importation of LNG, proportion of local gas usage.
  • Windiber: 2 wind farms with a combined capacity of 100MW. They would both be connected to the national grid system, and also be optimised for decentralised power provision to local industries and homes for the villages in the ridge.

The combination of fossil fuel and renewable energy provides a good energy mix that:

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