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Demise of the standard model for power sector reform and the emergence of hybrid power markets

  • Gratwick, Katharine Nawaal
  • Eberhard, Anton
Registered author(s):

    Following earlier reforms in the power sectors of industrialized countries and emerging markets (e.g. Chile), developing countries were encouraged to unbundle their electricity industries and to introduce competition and private sector participation. This paper highlights the developments that led to how power sector reform came to be defined as a standard model and theoretical framework in its own right, and how the model was used prescriptively in many developing countries. However, we also show that, after more than 15 years of reform efforts, this new industry model has not fully taken root in most developing countries. Finally, we identify and characterize the emergence of new hybrid power markets, which pose fresh performance and investment challenges.

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    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 36 (2008)
    Issue (Month): 10 (October)
    Pages: 3948-3960

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    Handle: RePEc:eee:enepol:v:36:y:2008:i:10:p:3948-3960
    Contact details of provider: Web page: http://www.elsevier.com/locate/enpol

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    1. Williams, J.H. & Ghanadan, R., 2006. "Electricity reform in developing and transition countries: A reappraisal," Energy, Elsevier, vol. 31(6), pages 815-844.
    2. Katharine Nawaal Gratwick & Anton Eberhard, 2008. "An Analysis of Independent Power Projects in Africa: Understanding Development and Investment Outcomes," Development Policy Review, Overseas Development Institute, vol. 26(3), pages 309-338, 05.
    3. Wamukonya, Njeri, 2003. "Power sector reform in developing countries: mismatched agendas," Energy Policy, Elsevier, vol. 31(12), pages 1273-1289, September.
    4. Woolf, Fiona & Halpern, Jonathan, 2001. "Integrating independent power producers into emerging wholesale power markets," Policy Research Working Paper Series 2703, The World Bank.
    5. Yi-chong, Xu, 2006. "The myth of the single solution: electricity reforms and the World Bank," Energy, Elsevier, vol. 31(6), pages 802-814.
    6. Alfred E. Kahn, 1988. "The Economics of Regulation: Principles and Institutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610523, June.
    7. Anton Eberhard & Vivien Foster & Cecilia Briceño-Garmendia & Fatimata Ouedraogo & Daniel Camos & Maria Shkaratan, 2008. "Underpowered : The State of the Power Sector in Sub-Saharan Africa," World Bank Other Operational Studies 7833, The World Bank.
    8. Jamasb, T., 2002. "Reform and Regulation of the Electricity Sectors in Developing Countries," Cambridge Working Papers in Economics 0226, Faculty of Economics, University of Cambridge.
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