International Experience with Cross-border Power Trading

The five main lessons for Southern Africa from our review of the experiencewith cross-border power trading in other regions of the work are that: Security of supply concerns need to be explicitly addressed and understood by the parties to proposed cross-border transactions. Regional entities need to be empowered to make decisions based on legally enforceable national government commitments, particularly in relation to planning, pricing, and settlement rules. Bilateral trading provides a basis for expanding trading volumes, both through constructing the physical infrastructure that future deals will use and by establishing workable legal and regulatory frameworks. Power pools will help to generate sustained increases in cross-border trading along with other regional trading arrangements, particularly in power systems with several interconnection. The substance and process of regulatory reviews in importing and exporting countries must be clear to create sufficient investment certainty.

Bibliographic Details

Main Author:	World Bank
Language:	English en_US
Published:	Washington, DC 2009-09
Subjects:	AMOUNT OF POWER, APPROACH, AVAILABILITY, BIDS, BILATERAL TRANSACTIONS, BORDER TRADE, BORDER TRANSMISSION, BROKER, BUYER, BUYERS, CAPABILITY, CAPITAL COSTS, CAPITAL EXPENDITURES, CARGO, COAL, COMMERCIAL RISKS, COMPETITIVE MARKETS, COMPETITIVENESS, CONCESSIONS, COPYRIGHT, COST RECOVERY, CREDIBILITY, DEBT, DECISION MAKING PROCESS, DEFAULTS, DEVELOPMENT BANK, DEVELOPMENT FINANCE, DISPUTE RESOLUTION, DOMESTIC ENERGY, DOMESTIC MARKET, DURABLE, ECONOMIES OF SCALE, ELECTRIC POWER, ELECTRICAL ENERGY, ELECTRICITY, ELECTRICITY CONSUMERS, ELECTRICITY CONSUMPTION, ELECTRICITY GENERATION, ELECTRICITY GENERATION CAPACITY, ELECTRICITY INFRASTRUCTURE, ELECTRICITY MARKET, ELECTRICITY SUPPLY, ELECTRICITY TRADE, ELECTRIFICATION, ENERGY DEMAND, ENERGY TRANSPORT, ENFORCEABILITY, ENTERPRISE SURVEYS, EQUIPMENT, EXPENDITURES, EXPORTER, EXPORTERS, FEDERAL POWER COMMISSION, FINANCIAL SETTLEMENTS, FOREIGN INVESTMENTS, FORGIVENESS, FUTURE DEMAND, GENERATING CAPACITY, GENERATION, GENERATION CAPACITY, GOVERNMENT COMMITMENTS, GOVERNMENT POLICY, GOVERNMENT SUPPORT, GRIDS, HYDRO PLANT, HYDROPOWER, INFRASTRUCTURE INVESTMENT, INSTITUTION, INSTITUTIONAL FRAMEWORK, INSTITUTIONAL SUPPORT, INTERNATIONAL DEVELOPMENT, INTERNATIONAL ENERGY, INVESTMENT CLIMATE, INVESTMENT DECISIONS, LEGAL AUTHORITY, LEGAL FRAMEWORK, LNG, LOAN, MARKET PARTICIPANTS, MARKET PRICES, MARKET REGULATION, MARKET RULES, MARKET TRADING, MARKET TRANSACTIONS, MARKETING, MATERIAL, NET INCOME, NETWORKS, PEAK CAPACITY, PEAK DEMAND, PEAK ELECTRICITY DEMAND, PHYSICAL INFRASTRUCTURE, PIPELINES, PLANT OPERATORS, PLANT PERFORMANCE, POLITICAL ECONOMY, POTENTIAL INVESTORS, POWER, POWER COMPANY, POWER CONSUMPTION, POWER DEMAND, POWER DEVELOPMENT, POWER OUTAGES, POWER PLANNING, POWER PLANTS, POWER POOLS, POWER PRODUCER, POWER PRODUCERS, POWER PROJECTS, POWER PURCHASE, POWER PURCHASE AGREEMENTS, POWER PURCHASES, POWER PURCHASING COSTS, POWER SECTOR, POWER SECTOR PLANNING, POWER SECTORS, POWER SHORTAGES, POWER STATION, POWER SUPPLIES, POWER SYSTEM, POWER SYSTEMS, POWER TRADE, POWER TRADING, POWER TRANSACTIONS, PRICING REGIME, PRIVATE INVESTMENT, PRIVATE SECTOR, PRIVATE SECTOR FINANCE, PRIVATE SECTOR INVESTMENT, PRIVATE SECTOR PARTICIPATION, PROJECT MANAGEMENT, PROTOCOL, PROTOCOLS, PUBLIC UTILITIES, PUBLIC UTILITY, PUBLIC UTILITY COMMISSION, REGIONAL INFRASTRUCTURE, REGULATORY AUTHORITIES, REGULATORY AUTHORITY, REGULATORY ENVIRONMENT, REGULATORY FRAMEWORK, REGULATORY FRAMEWORKS, REGULATORY REQUIREMENTS, REGULATORY SCRUTINY, RELIABILITY, RESERVE, RESULT, RESULTS, RETAIL TARIFFS, RETURN, RISK ALLOCATION, RISK CAPITAL, RISK MANAGEMENT, SENSITIVE INFORMATION, SETTLEMENT, SOFT LOANS, SPOT MARKET, SPOT MARKET PURCHASES, SPOT MARKET TRADING, SPOT MARKET TRANSACTIONS, STANDARDIZATION, STATE UTILITY, SUPPLY CONTRACTS, SURPLUS POWER, TECHNICAL ASSISTANCE, TECHNICAL ISSUES, TECHNICAL REQUIREMENTS, TELECOMMUNICATION, TELECOMMUNICATIONS, TIME PERIOD, TOLL, TRADING, TRANSACTION, TRANSACTION COSTS, TRANSLATION, TRANSMISSION ASSETS, TRANSMISSION CAPACITY, TRANSMISSION FACILITIES, TRANSMISSION GRID, TRANSMISSION INFRASTRUCTURE, TRANSMISSION LINE, TRANSMISSION LINES, TRANSMISSION ORGANIZATION, TRANSMISSION OWNERS, TRANSMISSION PRICING, TRANSMISSION SYSTEM, TRANSMISSION SYSTEMS, TRANSPARENCY, TREASURY, TREATIES, TREATY, USES, UTILITIES, VEHICLES, VOLTAGE, WHITE PAPER, WORLD TRADE,
Online Access:	http://documents.worldbank.org/curated/en/2009/09/16453555/international-experience-cross-border-power-trading https://hdl.handle.net/10986/12716
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