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 unbund...
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| Format: | Energy Study |
| Language: | en_US |
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Washington, DC
2014
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| Online Access: | http://hdl.handle.net/10986/17146 |
| id |
okr-10986-17146 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
en_US |
| topic |
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 |
| spellingShingle |
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 World Bank Revisiting Policy Options on the Market Structure in the Power Sector |
| description |
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. |
| format |
Economic & Sector Work :: Energy Study |
| author |
World Bank |
| author_facet |
World Bank |
| author_sort |
World Bank |
| title |
Revisiting Policy Options on the Market Structure in the Power Sector |
| title_short |
Revisiting Policy Options on the Market Structure in the Power Sector |
| title_full |
Revisiting Policy Options on the Market Structure in the Power Sector |
| title_fullStr |
Revisiting Policy Options on the Market Structure in the Power Sector |
| title_full_unstemmed |
Revisiting Policy Options on the Market Structure in the Power Sector |
| title_sort |
revisiting policy options on the market structure in the power sector |
| publisher |
Washington, DC |
| publishDate |
2014 |
| url |
http://hdl.handle.net/10986/17146 |
| _version_ |
1764435639986552832 |
| spelling |
okr-10986-171462021-04-23T14:03:34Z Revisiting Policy Options on the Market Structure in the Power Sector World Bank 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 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. 2014-02-25T20:50:29Z 2014-02-25T20:50:29Z 2011-07 http://hdl.handle.net/10986/17146 en_US CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo Washington, DC Economic & Sector Work :: Energy Study Economic & Sector Work |