The Impact of IPPs in Developing Countries : Out of the Crisis and into the Future

The Impact of IPPs in Developing Countries : Out of the Crisis and into the Future

Developing countries started opening their power sectors to independent power producers (IPPs) some ten years ago, and IPPs have now developed into a large market. This Note examines several contentious questions relating to the developing of this...

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Bibliographic Details
Main Authors: Albouy, Yves, Bousba, Reda
Format: Viewpoint
Language:English
Published: World Bank, Washington, DC 2012
Subjects:
ACCOUNTING
AGRICULTURE
AUCTIONS
BALANCE SHEET
BIDDING
BORROWING
CAPACITY COSTS
CAPITAL COSTS
CAPITAL MARKETS
COAL
CONSUMERS
DEBT
DEVELOPMENT BANKS
ECONOMIC GROWTH
ELECTRICITY
ENERGY PRICES
EXCHANGE RATE
EXCHANGE RATES
FINANCIAL CRISIS
FIXED COSTS
FOREIGN EXCHANGE
FOREIGN EXCHANGE EXPOSURE
FUELS
GOVERNMENT GUARANTEES
IMPORTS
INSURANCE
INTEREST RATES
INTERNAL CASH GENERATION
LOCAL CAPITAL MARKETS
MARGINAL COSTS
MARKET RISK
MARKET RISKS
MATURITIES
MORAL HAZARD
OPERATING COSTS
PRESENT VALUE
PRICE CAPS
PRICE SUBSIDIES
PRICE VARIATIONS
PRIVATE SECTOR
PRIVATIZATION
PRODUCERS
PUBLIC SECTOR
QUOTAS
RESOURCE MOBILIZATION
RETAIL
SALES
SAVINGS
SPOT PRICES
SUPPLY COSTS
TELECOMMUNICATIONS
TRANSACTION COSTS
TRANSPARENCY
UTILITIES INDEPENDENT POWER PRODUCERS
DEVELOPING COUNTRIES
POWER SECTOR
PRIVATE INVESTMENTS
ELECTRICITY PRICING
GOVERNMENT PLANNING
POWER DISTRIBUTION
FINANCIAL CRISES
MARKET LIBERALIZATION
RISK
GOVERNMENT LIABILITY
Online Access:http://documents.worldbank.org/curated/en/1998/12/441573/impact-ipps-developing-countries-out-crisis-future
http://hdl.handle.net/10986/11513
Description
Summary:Developing countries started opening their power sectors to independent power producers (IPPs) some ten years ago, and IPPs have now developed into a large market. This Note examines several contentious questions relating to the developing of this market: Has risk been transferred to the private sector, or have IPPs contributed to an increase in government liabilities? Have IPPs contributed an increase in foreign exchange exposure? Are pricing and investment decisions efficient? Have IPPs contributed to sector modernization? Answering these questions has become more pressing with the global financial crisis. The Note concludes that on the whole IPPs have had a positive development impact. But negative effects become significant when the IPP program quickly grows to a large size relative to the host grid capacity, as has happened in a few Asian countries.

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