International Power Interconnections : Moving from Electricity Exchange to Competitive Trade
International electricity markets are complex, and experience with them is limited. Purely physical exchange between countries already occurs where interconnection lines are in place. But power trade requires more sophisticated organizational struc...
| Main Authors: | , |
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| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1995/03/441231/international-power-interconnections-moving-electricity-exchange-competitive-trade http://hdl.handle.net/10986/11675 |
| Summary: | International electricity markets are
complex, and experience with them is limited. Purely
physical exchange between countries already occurs where
interconnection lines are in place. But power trade requires
more sophisticated organizational structures and
coordination. Harmonizing national organizational structures
is a first step toward the freer flow of power across
borders. Unbundling national power sectors could help
further in breaking bottlenecks, particularly in
transmission. But coordination needs much attention. Here,
the key issue for policymakers is this: What terms and
conditions are needed to establish competitive regional
electricity trade in which buyers and seller can, at any
time and regardless of their locations, negotiate power and
energy contracts covering a wide spectrum of commercial
products? This Note states that, strictly speaking, there is
still no electricity trade in the full sense. To achieve
true electricity trade, these are the prerequisites: need
and willingness, technical means, national institutions and
regional operations, and pricing and contractual issues. |
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