Institutional Arrangements for the Promotion of Regional Integration of Electricity Markets : International Experience

This paper focuses on the institutional arrangements needed for facilitating regional electricity cooperation. The paper begins by discussing the theory of international trade cooperation in electricity, with a view to discussing what preconditions might be important in facilitating wide area trading across national borders. It then discusses two sets of case studies. The first set focuses on three regional developing country power pools -- the Southern African Power Pool, the West African Power Pool, and the Central American Power Market. The second set focuses on three regional power pools in more developed countries -- one in the United States, the Single Electricity Market in Ireland, and the South East Europe market. These cases highlight the potential and difficulty of having cross-jurisdictional power pools. In the light of the theory and evidence presented, key lessons are drawn in the areas of preconditions for trading, necessary institutional arrangements, practicalities of timetabling, reasons to be hopeful about future prospects, and suggestions for future research.

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Bibliographic Details
Main Authors: Oseni, Musiliu O., Pollitt, Michael G.
Language:English
en_US
Published: World Bank, Washington, DC 2014-06
Subjects:ACCOUNTING, APPROACH, AUCTION, AUCTIONS, AVAILABILITY, BENEFIT ANALYSIS, BERTRAND COMPETITION, BID, BIDDING, BIDS, BORDER ELECTRICITY TRADE, BORDER TRADE, BORDER TRANSMISSION, CAPACITY BUILDING, CAPITAL MARKET, CAPITAL MARKET LIBERALIZATION, COAL, COMPARATIVE ADVANTAGE, COMPETITIVE MARKET, CONFLICTS OF INTEREST, COST OF ELECTRICITY, COST SAVINGS, COST-BENEFIT ANALYSES, CURRENCY, DECISION MAKING, DEVELOPED COUNTRIES, DEVELOPING COUNTRIES, DEVELOPING COUNTRY, DEVELOPMENT BANK, DEVELOPMENT FINANCE, DIESEL, DISTRIBUTION OF ELECTRICITY, DOMESTIC ENERGY, DOMESTIC MARKET, ECONOMIC ACTIVITY, ECONOMICS, ECONOMIES OF SCALE, EFFICIENT MARKET, ELECTRIC GRID, ELECTRIC POWER, ELECTRIC POWER PRODUCERS, ELECTRICAL INTERCONNECTION, ELECTRICAL LOADS, ELECTRICITY, ELECTRICITY CONSUMERS, ELECTRICITY CONSUMPTION, ELECTRICITY DEMAND, ELECTRICITY DIRECTIVES, ELECTRICITY GENERATION, ELECTRICITY LIBERALIZATION, ELECTRICITY MARKET, ELECTRICITY MARKET REFORMS, ELECTRICITY MARKETS, ELECTRICITY NETWORK, ELECTRICITY PRICE, ELECTRICITY PRICES, ELECTRICITY PRODUCERS, ELECTRICITY PRODUCTION, ELECTRICITY REGULATORS, ELECTRICITY SALES, ELECTRICITY SECTOR, ELECTRICITY SUPPLIERS, ELECTRICITY SUPPLY, ELECTRICITY SYSTEM, ELECTRICITY TRADING, ELECTRICITY TRANSMISSION, ELECTRIFICATION, EMISSIONS, ENERGY BILLS, ENERGY DEMAND, ENERGY DEVELOPMENT, ENERGY GENERATION, ENERGY MARKETS, ENERGY NEEDS, ENERGY PRICE, ENERGY PRODUCTION, ENFORCEMENT MECHANISM, ENTRY BARRIERS, ENVIRONMENTAL, ENVIRONMENTAL POLICIES, ENVIRONMENTAL POLICY, FAIR, FEASIBILITY STUDIES, FEASIBILITY STUDY, FINANCIAL MARKETS, FINANCIAL SUPPORT, FOREIGN CAPITAL, FOSSIL, FUEL, FUEL COSTS, GAS, GENERATION, GENERATION CAPACITY, GENERATION OF ELECTRICITY, GENERATORS, GOVERNMENT REVENUE, HUMAN DEVELOPMENT, HUMAN RESOURCES, HYDRO POWER, HYDROPOWER, INCOME TAXES, INDUSTRIAL PRICES, INFRASTRUCTURE DEVELOPMENTS, INSTITUTIONAL DEVELOPMENT, INSTITUTIONAL DEVELOPMENTS, INSURANCE, INTERNATIONAL BANK, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCIAL INSTITUTIONS, INTERNATIONAL MARKET, INTERNATIONAL TRADE, INTERNATIONAL TRANSACTIONS, INVESTMENT BANK, LEGAL SYSTEM, MARGINAL COST, MARGINAL COSTS, MARKET CLEARING PRICES, MARKET CONSTRAINT, MARKET DESIGN, MARKET EFFICIENCY, MARKET INTEGRATION, MARKET LIBERALIZATION, MARKET PARTICIPANTS, MARKET PLAYERS, MARKET POWER, MARKET PRICE, MARKET PRICES, MARKET REFORMS, MARKET RISKS, MARKET SHARE, MARKET TRADERS, MARKET TRANSACTIONS, MONOPOLIES, MONOPOLY, MULTILATERAL LENDERS, OIL, OLIGOPOLIES, PEAK CAPACITY, PEAK DEMAND, PLANT OPERATIONS, POLLUTION, POWER PLANT, POWER PLANTS, POWER PRICES, POWER PRODUCERS, POWER SECTORS, POWER SHORTAGES, POWER STATIONS, POWER SYSTEM, POWER SYSTEMS, PREDATORY PRICING, PRICE DISTORTION, PRICE EFFECT, PRICE FLUCTUATIONS, PRICE LEVELS, PRICE OF POWER, PRICE RISKS, PRICE SETTING, PRICE VOLATILITY, REGULATORY OVERSIGHT, RENEWABLE ENERGY, RESERVE, RESERVES, RISK PROFILE, SALE, SALES, SETTLEMENT, SHAREHOLDERS, SIDE PAYMENTS, SPOT MARKET, SPOT MARKETS, SPREAD, SUBSTITUTE, SUPPLIER, SUPPLIERS, SUPPLY FUNCTION, SURPLUS, TAX, TRADE LIBERALIZATION, TRADING, TRADING SYSTEM, TRANSACTION, TRANSACTION COST, TRANSMISSION CAPACITY, TRANSMISSION CONSTRAINTS, TRANSMISSION GRID, TRANSMISSION LINE, TRANSMISSION LINES, TRANSMISSION ORGANIZATIONS, TRANSMISSION SYSTEM, TRANSPARENCY, TREATY, UTILITIES, VARIABLE COST, VOLTAGE, WHOLESALE POWER, WHOLESALE PRICES, WILLINGNESS TO PAY, WIND,
Online Access:http://documents.worldbank.org/curated/en/2014/06/19732154/institutional-arrangements-promotion-regional-integration-electricity-markets-international-experience-vol-1
https://hdl.handle.net/10986/19376
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