Electricity markets: an overview and comparative study

Abstract

Purpose -The electric power industry has been moving from a regulated monopoly structure to a deregulated market structure in many countries. The purpose of this study is to comprehensively review the existing markets to study advantages, issues involved and lessons learnt to benefit emerging electricity markets. Design/methodology/approach -The paper employs a comprehensive review of existing competitive electricity market models in USA (California), UK, Australia, Nordic Countries (Norway), and developing country (Chile) to analyze the similarities, differences, weaknesses, and strengths among these markets based on publically available data, literature review and information. Findings -Ongoing or forthcoming electricity sector restructuring activities in some countries can be better designed based on lessons learnt from existing markets and incorporating their own political, technical and economical contexts. A template for design of successful electricity market has also been presented.Research limitations/implications -This study is limited to a comparative analysis of five markets and can be extended in the future for other existing and emerging electricity markets. Practical implications -The discussed weaknesses and strengths of existing electricity markets in this study can be practically utilized to improve the electricity industry market structures leading to several social benefits including lower electricity cost. Originality/value -The comprehensive review and analysis of five existing markets, physically located in different continents, may be used as an assistance or reference guide to benefit the emerging electricity markets in other countries.

Energy reform in Mexico: Imperfect unbundling in the electricity sector

“…However, unlike the present analysis, they do not address superimposed capacities and responsibilities of government agencies that could create coordination and regulatory failure under this model. Srivastava et al (2011) reviewed alternative arrangements in the US and four other unbundled markets, focusing on governance and incentives. Schober (2013) analyzed the static and dynamic effects of unbundling in Latin American electricity markets but concentrated on wholesale and integrated TO/DO only.…”

Market Restructuring in Electricity inMexico: Lessons from International Deregulation

“…Author, with data from Srivastava et al. (). Central to the market is the ISO and infrastucture players SC, LSE/AS, PX, and RTO.…”

“…The ISO (CENACE in Mexico's case) is generally a nonprofit organization that oversees market activities in unbundled systems and has the following activities and responsibilities: Srivastava et al (2011). Central to the market is the ISO and infrastucture players SC, LSE/AS, PX, and RTO.…”

Design of a weekly hybrid power market in China facilitating connection of large-scale renewable generation

“…Looking into the early history of power markets in the developed countries, their first step of market reform was the legislation of Electricity Act in the beginning stage. Afterwards, fully open markets were accomplished at once [8]. While in China, the market environment is still immature.…”