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Lessons Learned From Electricity Market Liberalization

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  • Paul L. Joskow

Abstract

This paper discusses the lessons learned from electricity sector liberalization over the last 20 years. The attributes of reform models that have exhibited good performance attributes are identified, drawing on empirical analysis of market structure, behavior and performance in many countries. Wholesale and retail market competition and network regulation performance evidence are discussed. Technical, economic, and political challenges to improving the efficiency of what continue to be partial liberalization programs in many countries are considered.

Suggested Citation

  • Paul L. Joskow, 2008. "Lessons Learned From Electricity Market Liberalization," The Energy Journal, , vol. 29(2_suppl), pages 9-42, December.
    • Handle: RePEc:sae:enejou:v:29:y:2008:i:2_suppl:p:9-42
    DOI: 10.5547/ISSN0195-6574-EJ-Vol29-NoSI2-3
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    7. Orr Shahar & Stefan Lessmann & Daniel Traian Pele, 2025. "Causality analysis of electricity market liberalization on electricity price using novel Machine Learning methods," Papers 2507.12331, arXiv.org.
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    9. Abada, Ibrahim & Belkhouja, Mustapha & Ehrenmann, Andreas, 2025. "On the valuation of legacy power production in liberalized markets via option-pricing," European Journal of Operational Research, Elsevier, vol. 322(3), pages 1005-1024.
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    12. Huang Zhenyu & Yuan Zhao, 2026. "Empirical Validation of a Dual-Defense Mechanism Reshaping Wholesale Electricity Price Dynamics in Singapore," Papers 2602.12782, arXiv.org.
    13. Sufia, & Singh, Anoop & Mishra, Shambhavi, 2025. "Operational efficiency and service quality of Indian electricity distribution utilities: A three-stage DEA and Malmquist Index analysis," Utilities Policy, Elsevier, vol. 96(C).
    14. Loiacono, Luisa & Rizzo, Leonzio & Stagnaro, Carlo, 2025. "Impact of bidding zone re-configurations on electricity prices: Evidence from Sweden," Energy Economics, Elsevier, vol. 141(C).
    15. Balli, Faruk & Balli, Hatice Ozer & Hoxha, Indrit & Nguyen, Hannah & Dang, Tam Hoang Nhat, 2026. "Energy market deregulation: A new perspective on dividend smoothing," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 106(C).
    16. Sirin, Selahattin Murat & Abuouf, Sarah & Elshurafa, Amro M., 2025. "Is the single-buyer model a barrier to clean energy deployment? Empirical evidence on decarbonization and renewable energy supply in emerging and developing countries," Energy Policy, Elsevier, vol. 206(C).
    17. Pant, Prashant & Belz, Frank-Martin, 2026. "Energy market liberalization and the emergence of new energy ventures in Germany," Energy Policy, Elsevier, vol. 208(C).
    18. Spyros Giannelos, 2025. "Reinforcement Learning in Energy Finance: A Comprehensive Review," Energies, MDPI, vol. 18(11), pages 1-41, May.
    19. Chukwuemelie Chukwubuikem Okpezune & Mehdi Seraj & Hüseyin Özdeşer, 2025. "The Relationship Between the Energy Market, Economic Growth, and Stock Market Performance: A Case Study of COMESA," Energies, MDPI, vol. 18(16), pages 1-24, August.
    20. Qingmin Kong & Peng Lin & Tingting Gu, 2024. "Impact of Servitization on Employee Satisfaction with Performance Evaluation Systems: A Case Study of China’s New Energy Sector Amid Power Market Reforms," Sustainability, MDPI, vol. 16(20), pages 1-18, October.
    21. Lüken genannt Klaßen, Hermann, 2026. "Emergency measures before the crisis? The puzzling pattern of price controls in the EU electricity market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 226(PA).
    22. Cepeda, Mauricio & Saguan, Marcelo & Finon, Dominique & Pignon, Virginie, 2009. "Generation adequacy and transmission interconnection in regional electricity markets," Energy Policy, Elsevier, vol. 37(12), pages 5612-5622, December.
    23. Chiara Fusar Bassini & Jacqueline Adelowo & Priya L. Donti & Lynn H. Kaack, 2025. "Strategic bid response under automated market power mitigation in electricity markets," Papers 2511.20812, arXiv.org.
    24. Thomasi, Virginia & Siluk, Julio Cezar M. & Rigo, Paula D. & Pappis, Cesar Augusto de O., 2024. "Challenges, improvements, and opportunities market with the liberalization of the residential electricity market," Energy Policy, Elsevier, vol. 192(C).
    25. Hasan, Shahid & Fuentes, Rolando, 2025. "Designing effective hydrogen Markets: Policy recommendations from electricity and gas market reform," Energy Policy, Elsevier, vol. 207(C).

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