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Russian electricity market reform: Deregulation or re-regulation?

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  • Gore, Olga
  • Viljainen, Satu
  • Makkonen, Mari
  • Kuleshov, Dmitry

Abstract

Russia commenced liberalization of electricity prices in 2007 increasing the liberalization rate by 10–25% every six months. It was planned to reach full liberalization by 2011. Currently, the degree of liberalization is uncertain because of intense price regulation and a highly concentrated market in the hands of four large generating companies. Increased regulation and further consolidation may drive the market towards its pre-reform state. This paper analyses the competitive landscape of the Russian electricity market by assessing the ownership structure of electricity generation, price drivers, and government involvement in the electricity wholesale market in Russia. The main research question is why the targeted level of market liberalization has not been fully achieved in the Russian electricity market.

Suggested Citation

  • Gore, Olga & Viljainen, Satu & Makkonen, Mari & Kuleshov, Dmitry, 2012. "Russian electricity market reform: Deregulation or re-regulation?," Energy Policy, Elsevier, vol. 41(C), pages 676-685.
    • Handle: RePEc:eee:enepol:v:41:y:2012:i:c:p:676-685
    DOI: 10.1016/j.enpol.2011.11.031
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    References listed on IDEAS

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    3. Guoli Chen & Jiyang Dong & Jinshuai Hu & Feida Zhang, 2024. "Regulatory institutional misalignment and cross-border acquisitions: evidence from an emerging-market country," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 55(2), pages 172-193, March.
    4. Alexandra Bratanova & Jacqueline Robinson & Liam Wagner, 2013. "New Technology Adoption for Russian Regional Energy Generation: Moscow Case Study," Energy Economics and Management Group Working Papers 4-2013, School of Economics, University of Queensland, Australia.
    5. Summanen, Tuomo & Arminen, Heli, 2018. "Ownership unbundling in electricity distribution: The Russian experience," Energy, Elsevier, vol. 161(C), pages 1199-1210.
    6. Yang, Xue & Xu, He & Su, Bin, 2022. "Factor decomposition for global and national aggregate energy intensity change during 2000–2014," Energy, Elsevier, vol. 254(PB).
    7. Mou, Dunguo, 2014. "Understanding China’s electricity market reform from the perspective of the coal-fired power disparity," Energy Policy, Elsevier, vol. 74(C), pages 224-234.
    8. Chernenko, Nadia, 2015. "Market power issues in the reformed Russian electricity supply industry," Energy Economics, Elsevier, vol. 50(C), pages 315-323.
    9. Banshwar, Anuj & Sharma, Naveen Kumar & Sood, Yog Raj & Shrivastava, Rajnish, 2018. "An international experience of technical and economic aspects of ancillary services in deregulated power industry: Lessons for emerging BRIC electricity markets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 90(C), pages 774-801.
    10. Kozlova, Mariia & Collan, Mikael, 2016. "Modeling the effects of the new Russian capacity mechanism on renewable energy investments," Energy Policy, Elsevier, vol. 95(C), pages 350-360.
    11. Szőke, Tamás & Hortay, Olivér & Farkas, Richárd, 2021. "Price regulation and supplier margins in the Hungarian electricity markets," Energy Economics, Elsevier, vol. 94(C).
    12. Kozlova, Mariia & Collan, Mikael, 2020. "Renewable energy investment attractiveness: Enabling multi-criteria cross-regional analysis from the investors’ perspective," Renewable Energy, Elsevier, vol. 150(C), pages 382-400.
    13. Yucekaya, Ahmet, 2013. "Bidding of price taker power generators in the deregulated Turkish power market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 506-514.
    14. Kilinc-Ata, Nurcan & Proskuryakova, Liliana N., 2023. "Empirical analysis of the Russian power industry's transition to sustainability," Utilities Policy, Elsevier, vol. 82(C).
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    16. Letova, Ksenia & Yao, Rui & Davidson, Mikhail & Afanasyeva, Ekaterina, 2018. "A review of electricity markets and reforms in Russia," Utilities Policy, Elsevier, vol. 53(C), pages 84-93.

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