In this article, we will be taking a look at the 20 countries with most blackouts in the world. If you do not want to learn about the global impact of blackouts on businesses, head straight to the 5 Countries with Most Blackouts in the World.
In today’s interconnected world, reliable access to electricity is crucial for economic stability and societal well-being. However, some countries need help maintaining a consistent power supply globally, experiencing frequent blackouts that disrupt daily life and hinder development efforts. Exploring the nations grappling with the highest incidence of blackouts offers valuable insights into the complexities of energy infrastructure, governance, and regional dynamics that shape reliability disparities.
Addressing the Impact of Power Outages: Leveraging Generators and UPS Systems
Power outages represent a formidable challenge affecting both businesses and households on a global scale. With an average of seven electrical outage events occurring monthly, interruptions in power supply can stem from diverse factors, including natural disasters, equipment failures, cyberattacks, or inadequate infrastructure maintenance.
Many entities turn to generators and Uninterruptible Power Supply (UPS) systems to mitigate the disruptive consequences of blackouts. Generators play a vital role in ensuring continuity of operations by converting fuel into electricity during outages. Meanwhile, UPS systems offer short-term power backup using batteries to safeguard against data loss and equipment damage.
In the United States, power outages are commonplace, with notable incidents like the 2011 Southwest blackout impacting millions. However, the US market for generators and UPS systems is well-developed and characterized by a strong emphasis on reliability and efficiency. Various sectors, including healthcare, telecommunications, and data centres, heavily invest in backup power solutions to ensure seamless operations.
Over the years, numerous major power outages have been recorded globally, affecting millions of individuals. Notable incidents such as the Northeast blackout of 2003, which impacted over 55 million people, underscore the vulnerability of power grids and highlight the critical importance of robust backup systems.
The financial implications of power outages can be substantial, with losses running into billions of dollars in some cases. For example, a nationwide blackout in Romania in 2014 resulted in approximately US$1 billion in losses. Such events underscore the economic impact of inadequate power infrastructure and the pressing need for reliable backup solutions.
According to industry reports, power outages cost the US economy between $18 and $33 billion annually. Additionally, the global market for portable generators is anticipated to reach $2.8 billion by 2026, with significant growth projected. These figures underscore the important financial implications of power outages and the escalating demand for reliable backup solutions in domestic and international markets.
Global Impact of Power Outages on Businesses
Power disruptions pose substantial financial burdens for businesses, with one in four companies in the U.S. experiencing monthly outages, amounting to an annual cost of $150 billion to the economy. In the manufacturing sector, even minor power flickers can trigger significant disruptions, potentially leading to equipment damage and supply chain interruptions. A mere hour of downtime can translate to losses exceeding $5 million for large manufacturers. Similarly, retailers encounter challenges during outages, with one in three experiencing monthly power losses, resulting in significant damages from spoiled goods and diminished customer satisfaction.
Power outages have significant ramifications across various sectors. In manufacturing, interruptions halt production lines, causing material losses and supply chain disruptions, while equipment damage leads to substantial costs. The financial industry, especially stock markets, faces vulnerability due to the need for real-time processing, where even a minute of downtime results in considerable economic losses. In 2020, the US saw a 73% increase in outages, totalling 1.33 billion outage hours, attributed to extreme weather events. Additionally, IT systems and data centres rely heavily on uninterrupted power supply, with downtime leading to data loss, communication breakdowns, and financial setbacks.
According to the Electric Power Research Institute (EPRI), power outages cost U.S. businesses an average of $5,000 per minute, impacting various industries differently. Additionally, a study in Ethiopia highlighted a 15% increase in firms’ costs due to outages, significantly affecting productivity and operational efficiency.
Enhancing Grid Reliability: Collaborative Efforts of NRECA and NERC
The National Rural Electric Cooperative Association (NRECA) is crucial in addressing blackouts and bolstering grid reliability through various initiatives. One key aspect is its advocacy efforts, such as expressing concerns about EPA regulations to mitigate blackout threats. Additionally, NRECA collaborates with the Department of Energy in a $58 million program dedicated to developing microgrids for remote communities, thereby enhancing grid resiliency.
The organization also explores innovative solutions like solar PV and battery storage systems to improve grid reliability further. Moreover, NRECA’s economic impact is substantial, supporting jobs and generating tax revenue. Its focus on community empowerment is evident through cooperative development initiatives.
Furthermore, NRECA extends its impact globally through NRECA International, providing reliable electricity to communities worldwide. Electric cooperatives’ investments totalled nearly $409 billion between 2018 and 2022, significantly impacting local economies. In addition to NRECA’s efforts, the North American Electric Reliability Corporation (NERC) plays a pivotal role in preventing blackouts. NERC’s initiatives include triennial reliability audits and establishing mandatory standards following the 2003 blackout.
These measures promote industry-wide readiness and reliability. NERC’s focus on enforcing standards, conducting audits, and adapting to industry trends ensures grid stability, particularly amidst integrating renewable energy and distributed energy resources. Recent actions by NERC include issuing essential alerts, revising standards, and closely monitoring grid reliability during weather events. Overall, the collaboration between NRECA and NERC underscores the collective commitment to enhancing grid reliability and preventing blackouts, ultimately ensuring the resilience of the electrical infrastructure.
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Our Methodology
Our methodology involved ranking countries experiencing the most blackouts globally, using the latest data for respective years. We operated under the assumption that power crises have a long-term horizon, suggesting that these countries are likely still grappling with power shortages. We relied on the World Bank for the accuracy of the data and ranked the list on the basis of the number of power outages in firms in these countries in a typical month.
Here is our list of the 20 countries with most blackouts in the world.
20. Tanzania
# of Monthly Blackouts in 2013: 8.90
Tanzania, one of the countries with most blackouts in the world, faces significant challenges with power outages, causing disruptions to businesses and households. Initiatives like the Electricity Supply Monitoring Initiative (ESMI) track electricity service quality, particularly in Dar es Salaam, to improve customer experience. The MCC’s Tanzania Compact (2008-2013) aimed to enhance energy reliability in Zanzibar by installing a submarine cable, yet power cuts persist despite Tanzania’s energy potential.
19. Sierra Leone
# of Monthly Blackouts in 2017: 9.10
Sierra Leone faces chronic power outages due to unpaid debts, corruption, and an energy crisis. Major blackouts stem from a $40 million debt to Karpowership, causing prolonged cuts in Freetown, which affects daily life, hampers productivity, and disrupts essential services. The economic crisis worsens the situation, with currency devaluation, inflation, and high subsidies for karpowership. Calls for investment in solar and hydropower emerge to reduce dependency on costly energy.
18. Burkina Faso
# of Monthly Blackouts in 2009: 9.80
Burkina Faso, one of the countries with most blackouts in the world, grapples with frequent power outages, adversely affecting businesses and the economy. Major blackout events have had detrimental effects on the population and finances. These outages occur frequently, with a significant percentage of firms experiencing disruptions. In 2009 alone, the country lost 5.8% of its sales due to power cuts, indicating the severe economic impact. Power outages have been shown to impede economic growth in Sub-Saharan Africa, including Burkina Faso. In 2013, there were 118 annual power outages, and in December 2009, approximately 91.9% of firms reported experiencing electrical disruptions.
17. Myanmar
# of Monthly Blackouts in 2016: 11
Myanmar, a country with highest number of blackouts, faces severe power sector challenges, resulting in widespread blackouts due to conflict-related attacks, declining generation, and financial instability. Significant cities like Yangon, Mandalay, and Nay Pyi Taw experience outages. Financially, the sector suffers from currency depreciation, increased maintenance costs, and revenue declines. Industries, notably garments, are severely impacted, leading to reduced production and financial losses.
16. Afghanistan
# of Monthly Blackouts in 2014: 11.50
Afghanistan grapples with significant blackouts, mainly due to unpaid electricity bills to neighboring countries and exacerbated by the Taliban’s takeover, resulting in a cash crunch. Unpaid bills amounting to $62 million risk power cuts, with only 38% of the population having electricity access. The financial impact is severe, with affected firms losing sales and industries suffering. Recent massive outages occurred after Uzbekistan halted electricity supplies. Mismanagement of the energy sector by the Taliban-led government reveals heavy reliance on imports and unreliable supply.
15. DR Congo
# of Monthly Blackouts in 2013: 12.30
The Democratic Republic of Congo (DRC), one of the countries with highest number of blackouts, faces significant challenges despite its rich natural resources. Political instability, conflict, and a humanitarian crisis persist, with around 62% of the population living below $2.15 a day. DRC has one of the lowest electrification rates globally, with only 9% national access to electricity in 2015.
14. Zambia
# of Monthly Blackouts in 2019: 13.30
Zambia standing fourteenth among the countries with most blackouts in the world, faces severe power outages due to low dam reservoir capacity and climate-induced droughts, with blackouts lasting up to 15 hours daily. Insufficient rainfall in 2015 worsened the crisis, leading to widespread load shedding. The manufacturing sector suffers significant losses, and distrust in the national utility, ZESCO, impedes investment in backup solutions. Previous underinvestment in the energy sector exacerbates the situation. Export-oriented firms are willing to pay more for reliable energy. The Energy Regulation Board’s role in setting tariffs for the mining sector is crucial for addressing these challenges.
13. India
# of Monthly Blackouts in 2014: 13.80
India grapples with significant blackouts driven by supply-side misallocation and discretionary power plant outages. In 2022, around 34% of households experienced outages during high temperatures. Despite ample power plant supply and infrastructure, frequent blackouts persist. A significant blackout event in 2022 marked one of the worst power crises in six years, impacting firm productivity and household income. Rising electricity purchase costs lead to reduced power supply to consumers. The cost of preventing all blackouts is high for utilities, but reforms could make costs more reasonable by enhancing low-cost power plant availability.
12. Burundi
# of Monthly Blackouts in 2014: 16.60
Burundi stands among the countries with the highest number of blackouts. During the 2015 political crisis, journalists faced pressure and financial difficulties, resulting in a media blackout. Social media restrictions during the 2020 elections hindered transparency. Since 2009, electricity shortages due to low investment and high demand post-conflict have led to systematic outages, hampering economic recovery, especially for small enterprises.
11. Gambia
# of Monthly Blackouts in 2018: 21.10
In The Gambia, power outages significantly impact both the population and businesses. A country-wide Internet outage in 2022 lasting over 8 hours was attributed to technical issues with backup links. Historical blackouts have disrupted daily life and business operations, showcasing infrastructure vulnerability. Financially, blackouts lead to productivity loss, increased operational costs, and investment risks, affecting economic growth.
10. Republic of the Congo
# of Monthly Blackouts in 2009: 21.50
The Republic of Congo faces significant power outages, affecting businesses and residents due to reliance on gas, hydropower, and diesel. The national utility, SNE, struggles with low collection rates, tariffs, and high electricity losses, causing financial strain. Conflict and violence exacerbate challenges for the population. In 2013, electrification rates were 42%, with losses in the distribution network exceeding 50%. Firms regularly experience power outages, impacting operations and productivity.
9. Niger
# of Monthly Blackouts in 2017: 22
Nigeria faces significant blackouts due to system collapses and technical issues, impacting millions of people and businesses. The financial burden is substantial, with households and businesses resorting to costly alternatives like diesel generators. The removal of fuel subsidies exacerbates the financial strain. Recent blackout events caused power generation to plummet by 93.5%, resulting in near-total outages. Nigeria’s electricity generation typically operates far below its potential capacity of 12,500MW, exacerbating blackout challenges and highlighting infrastructure needs.
8. Benin
# of Monthly Blackouts in 2016: 28
Benin, stands eighth among the countries with most blackouts in the world, and faces significant challenges in its electricity sector, leading to frequent power outages and blackouts. Heavy reliance on imports and underdeveloped domestic generation capacity exacerbates the issue. To achieve universal electrification by 2030, Benin requires substantial investments, ranging from 1.2 to 5.9 billion USD, which is crucial for improving energy infrastructure and reducing import dependency.
7. Central African Republic
# of Monthly Blackouts in 2011: 29
The Central African Republic faces frequent blackouts with severe economic implications despite abundant natural resources. Businesses endure approximately 29 monthly power outages, resulting in over 25% loss in annual sales. 2,022 floods and fuel shortages halted the economy, exacerbating blackout impacts. Economic activity stagnated with zero real GDP growth. Around 71% of the population lives below the poverty line, and 56% require humanitarian assistance in 2023.
6. Nigeria
# of Monthly Blackouts in 2014: 32.80
Nigeria stands sixth among the countries with most blackouts in the world, causing significant economic losses and challenges for its population. Major blackout events include a nationwide blackout in 2023 due to a transmission line fire and multiple grid collapses in 2022. Grid collapses have occurred over 200 times in the last nine years, leading to widespread blackouts. The economic cost of power shortages is $28 billion annually, with businesses losing $29 billion due to unreliable electricity. About 47% of Nigerians need access to grid electricity, relying heavily on generators despite the country’s installed capacity of 12,500 MW. Each 1% increase in power outages corresponds to a 2.86% decrease in GDP, reflecting significant losses for Nigeria.
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Disclosure. None: The 20 Countries with Most Blackouts in the World is originally published on Insider Monkey.