The WB's Energy Week 2006 - Reforming Power Markets in Developing Countries: What Have We Learned?

The World Bank Energy and Mining Sector Board Discussion Paper compiles the lessons of experience from the reforming power markets of developing countries and transition economies.

The World Bank's Paper focuses on reforms that address the generally poor performance of power markets in developing countries. It also covers reforms in those developing countries with power markets that are performing reasonably well. These lessons are taken from the rapidly growing literature on power market reform in these countries. The paper also acts a sourcebook of about 240 references to this documented experience.

First, the paper covers the context and background of power market reform in developing countries. It then covers the strategic components of reform to power markets, starting with enterprise restructuring and corporate governance, including the respective roles of state-owned enterprises and private enterprises in the provision of electricity services. It next deals with market structure and restructuring power systems, the experience with independent power producers, and competition in the power market. It then looks at regulation of power markets and—subsequently—at the social issues associated with power market reform for access and affordability to electricity services for the poor. Finally, the paper examines issues for implementing a reform program, including government’s roles and responsibilities, sequencing of reform steps, and transition issues for reform programs.

Further Information

WB_Energy19_ReformingMarkets.pdf (1,371 KB)