Taking Stock of Wholesale Power Markets in Developing Countries : A Literature Review

Rudnick, Hugh ; Velasquez, Constantin

World Bank, Washington, DC

关键词: ELECTRICITY;    POWER SECTOR REFORM;    DEVELOPING COUNTRIES;    EMERGING MARKET ECONOMIES;    ACCESS TO ENERGY;   

DOI  :  10.1596/1813-9450-8519
RP-ID  :  WPS8519

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Although many developing countries haveyet to meet the considerable prerequisites for establishingwholesale power markets, a significant minority of largermiddle-income countries have introduced diverse markets inthe past 25 years. Cost-based pools proved particularlypopular in Latin America and look to be a morestraightforward starting point than the bid-based poolsadopted in some other jurisdictions. Successful design ofpower markets involves paying careful attention to fourguiding principles. First, trading arrangements must ensureefficient and reliable operation of the market, efficientlyemploying available resources not only to balance aggregatesupply and demand, but also to allow congestion managementand supply ancillary services. Second, market design shouldensure strong participation of the demand side of themarket, by allowing large customers to participate directlyin the market, and medium ones to see spot market pricesthrough time-of-use tariffs. Third, open access to the powergrid should be guaranteed through industry restructuring,removal of barriers to entry of different players, andestablishment of a neutral system operator. Fourth, aworkable framework for supply adequacy is required to ensurecapacity meets demand without imposing supply constraints.This may entail complementing efficient energy price signalswith other mechanisms (such as auctions and capacityobligations) to provide adequate incentives for investmentin new generation capacity. Experience demonstrates that theearly stages of establishing power markets can bechallenging and necessitate the creation of regulatorymechanisms for market monitoring that can identify andaddress emerging design flaws, particularly for abuses ofmarket power. Countries not yet ready to introduce wholesalepower markets may still benefit from several emergingregional power markets. Looking ahead, the design of powermarkets is becoming increasingly complex due to thechallenges posed by disruptive technologies such as variablerenewable energy, large-scale storage, and increasinglysophisticated demand-side participation.