Revisiting Policy Options on the Market Structure in the Power Sector

The objectives of this study are to develop a taxonomy of the existing power market structures, as shown by the extent of vertical and horizontal unbundling found among restructured power systems, across developing countries; to design an analytical framework for assessing the desirability of unbundling under the variety of economic conditions found among developing countries; and To propose insights for operational guidance on alternative market structures based on relevant criteria, in particular on the initial conditions of a country and its power sector. The study specifically examines whether power system size and country per capita income can be reliable indicators of initial conditions for guiding policy on power market structure. This guidance is needed to address issues such as whether there are solid foundations for recommending vertical unbundling for small power systems in low-income countries, particularly in the absence of short term privatization prospects. The policy recommendations therefore have to be tailored to the specific taxonomy of market structures that characterize the electricity sector in developing countries. The study reports the evidence from econometric analysis and case studies on the (relative) success of achieving the objectives of unbundling. These objectives may be to enhance transparency and governance, attract private sector investment, and/or to create a competitive market and ultimately its impact on performance. The study has an analytical approach to model market structure, together with ownership and regulation, controlling for several variables, as determinants of performance across several indicators of performance, including access, operational and financial performance and environmental sustainability.

Bibliographic Details

Main Author:	World Bank
Format:	Energy Study biblioteca
Language:	en_US
Published:	Washington, DC 2011-07
Subjects:	access to electricity, approach, auctions, availability, average performance, average tariff, benchmark competition, benchmarking, benchmarking approach, bulk power, burning fossil fuels, Capacity building, capacity utilization, capital costs, Capital expenditure, capital investment, Capital market, Carbon, carbon dioxide, carbon dioxide emissions, carbon emissions, cash flow, coal, commercialization, competition in generation, competitive power market, competitive pressure, competitive wholesale market, competitiveness, cost increases, cost of energy, Cost Recovery, degree of concentration, demographics, diesel, distribution companies, distribution entity, distribution network, divestiture, econometric methods, Econometrics, economic conditions, economic costs, economic efficiency, economic factors, economic performance, Economics, economies of scale, economies of scope, efficiency improvements, electric industry, electric utilities, electricity, Electricity Distribution, Electricity Generation, electricity generators, electricity market, electricity production, electricity reforms, electricity sector, electricity supply, electricity tariff, electricity tariffs, electricity utilities, Emission, empirical analysis, empirical basis, empirical evidence, empirical studies, end users, energy infrastructure, energy mix, energy policy, energy source, Energy Transmission, Enterprise Performance, environmental, environments, exclusive rights, expenditure, financial constraints, Financial Markets, financial risk, financial risk management, fossil, fossil fuels, free entry, gas, generating capacity, generation, generation capacity, generation services, generators, government policies, holding company, horizontal integration, hydro-power, hydroelectric power, hydropower, impact of regulation, incumbent utilities, Independent Power Producers, industrial prices, infrastructure service providers, international investors, investment incentives, Labor Market, labor productivity, labour productivity, load factor, lower cost of capital, lower tariffs, market competition, market concentration, market conditions, market power, market reform, market regulation, market risks, MARKET STRUCTURE, monopoly, monopoly power, national income, natural gas, natural monopoly, nuclear power, nuclear power plants, oil, oil imports, open access, Operational Efficiency, outsourcing, ownership structure, performance indicators, petroleum, policy instruments, policy makers, Political Economy, pollution, POWER, power companies, power demand, power generation, power markets, Power Producers, power purchase, power purchase agreements, POWER SECTOR, power sector reforms, power sectors, power station, power suppliers, power supply, power system, power system operator, power systems, primary energy, private capital, private investor, private operators, private ownership, private sector, private sector investment, Private Sector Participation, privatization, public good, public ownership, regulators, regulatory agency, Regulatory Capacity, regulatory framework, regulatory reforms, renewable energy, residential prices, retail, retail competition, retail market, retail rates, retail sales, Retail utilities, returns to scale, risk management, sale, sales, service reliability, single buyer model, spread, supplier, suppliers, supply chain, supply costs, supply industry, surplus, Sustainable Development, tariff rates, tenders, thermal power, thermal power plants, total costs, trader, transaction costs, transmission grid, transmission infrastructure, transmission networks, unbundling, utilities, vertical integration, voltage, wholesale competition, wholesale electricity, wholesale electricity market, wholesale markets, wholesale power, wholesale prices, wind,
Online Access:	http://hdl.handle.net/10986/17146
Tags:	Add Tag No Tags, Be the first to tag this record!