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

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  • Gratwick, Katharine Nawaal
  • Eberhard, Anton
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    Abstract

    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

    Keywords: Power sector reform IPPs Hybrid power markets;

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    1. Yi-chong, Xu, 2006. "The myth of the single solution: electricity reforms and the World Bank," Energy, Elsevier, vol. 31(6), pages 802-814.
    2. 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.
    3. Woolf, Fiona & Halpern, Jonathan, 2001. "Integrating independent power producers into emerging wholesale power markets," Policy Research Working Paper Series 2703, The World Bank.
    4. Wamukonya, Njeri, 2003. "Power sector reform in developing countries: mismatched agendas," Energy Policy, Elsevier, vol. 31(12), pages 1273-1289, September.
    5. 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.
    6. 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.
    7. Williams, J.H. & Ghanadan, R., 2006. "Electricity reform in developing and transition countries: A reappraisal," Energy, Elsevier, vol. 31(6), pages 815-844.
    8. Alfred E. Kahn, 1988. "The Economics of Regulation: Principles and Institutions," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262610523, August.
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    Cited by:

    1. Nikandrova, Arina & Steinbuks, Jevgenijs, 2014. "Contracting for the second best in dysfunctional electricity markets," Policy Research Working Paper Series 6955, The World Bank.
    2. Erkan Erdogdu, 2014. "The Political Economy of Electricity Market Liberalization: A Cross-country Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    3. Erdogdu, Erkan, 2011. "The impact of power market reforms on electricity price-cost margins and cross-subsidy levels: a cross country panel data analysis," MPRA Paper 28414, University Library of Munich, Germany.
    4. Tankha, Sunil & Misal, Annasahed B. & Fuller, Boyd W., 2010. "Getting reforms done in inhospitable institutional environments: untying a Gordian Knot in India's power distribution sector," Energy Policy, Elsevier, vol. 38(11), pages 7121-7129, November.
    5. Eberhard, Anton & Gratwick, Katharine Nawaal, 2011. "IPPs in Sub-Saharan Africa: Determinants of success," Energy Policy, Elsevier, vol. 39(9), pages 5541-5549, September.
    6. Morgan Bazilian & Patrick Nussbaumer & Hans-Holger Rogner & Abeeku Brew-Hammond & Vivien Foster & Shonali Pachauri & Eric Williams & Mark Howells & Philippe Niyongabo & Lawrence Musaba & Brian Ó Galla, 2011. "Energy Access Scenarios to 2030 for the Power Sector in Sub-Saharan Africa," Working Papers 2011.68, Fondazione Eni Enrico Mattei.
    7. Erdogdu, Erkan, 2013. "Implications of liberalization policies on government support to R&D: Lessons from electricity markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 17(C), pages 110-118.
    8. Erdogdu, Erkan, 2013. "Essays on Electricity Market Reforms: A Cross-Country Applied Approach," MPRA Paper 47139, University Library of Munich, Germany.
    9. Msimanga, B. & Sebitosi, A.B., 2014. "South Africa's non-policy driven options for renewable energy development," Renewable Energy, Elsevier, vol. 69(C), pages 420-427.
    10. Dornan, Matthew, 2014. "Reform despite politics? The political economy of power sector reform in Fiji, 1996–2013," Energy Policy, Elsevier, vol. 67(C), pages 703-712.
    11. Worch, Hagen & Truffer, Bernhard & Kabinga, Mundia & Eberhard, Anton & Markard, Jochen, 2013. "A capability perspective on performance deficiencies in utility firms," Utilities Policy, Elsevier, vol. 25(C), pages 1-9.

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