Publication: Fostering Competition in China's Power Markets
Loading...
Date
2001-03
ISSN
Published
2001-03
Author(s)
Editor(s)
Abstract
This report proposes a strategy for developing competitive pool markets in China's power sector and for increasing energy trade between competitive pool markets areas. A three-stage approach is offered for developing the competitive pool markets. During stage 1, a mandatory competitive pool will be created with a single buyer. During stage 2, wholesale competition will be permitted. During stage 3, retail competition will be allowed, making the market fully competitive. The staged approach allows competitive market principles to be introduced immediately within existing institutions. This will allow needed skills and parallel economic reforms to be developed gradually and so facilitate increased competition in the later stages. The report also discusses key elemetns of competitive market development, including the organization of transmission services and transition issues such as dealing with stranded costs and mitigating market power among generators.
Link to Data Set
Citation
“Berrah, Noureddine; Lamech, Ranjit; Zhao, Zhao. 2001. Fostering Competition in China's Power Markets. World Bank Discussion Paper;No. 416. © World Bank. http://hdl.handle.net/10986/13909 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Publication Facets of Globalization : International and Local Dimensions of Development(Washington, DC: World Bank, 2001-10)The chapters in this volume underscore the transformative role of globalization and urbanization, and show the interplay between these forces. Trade reform and liberalized foreign investment regimess have contributed to the spatial reallocation of economic activity toward cities, especially those cities that can attract and nurture human capital and strong connections to other markets. Global factors have, therefore, reinforced agglomeration economies in shifting economic clout toward cities, and in so doing they may be exacerbating regional disparities in incomes. The rise of cities is changing political dynamics in developing nations. It is forcing a reappraisal of existing constitutional structures and center-local relations, as well as the important--and perhaps more mundane-- arrangements for funding and organizing investment by subnational entities. At the same time, democratization is reinforcing the pressures for local autonomy. This perspective shifts the debate away from whether or not globalization is undermining the role of the central state and toward one about the appropriate allocation of responsibilities and resources to different layers of government. Strong arguments support the position that municipalities can, with the appropriate resources and political structures to ensure their responsiveness to local needs, make substantial improvements in the well-being of urban residents. Experience suggests that some state functions ought to remain with government.Publication Managing the Real and Fiscal Effects of Banking Crises(Washington, DC: World Bank, 2002-01)The study provides two recent analyses, spurred by the recent East Asian crisis, of government responses to financial distress, and, also presents a comprehensive database on systemic, and borderline banking crises. In the first chapter, the authors review the tradeoffs involved in public policies for systemic, financial, and corporate sector restructuring. They find that consistent policies are crucial for success, though such consistency is often missing. This consistency covers many dimensions, and entails among other things, ensuring that there are sufficient resources for absorbing losses, and, that private agents face appropriate incentives for restructuring. The authors also find that sustainable restructuring, requires deep structural reforms, facing upfront, political economy factors. In the second chapter, the authors use cross-country evidence to determine whether specific crisis containment, and resolution policies, systematically influence the fiscal costs of resolving a crisis. They find that accommodating policies - such as blanket deposit guarantees, debtor bailouts, and regulatory forbearance, etc. - significantly increase fiscal costs. The third chapter, is a comprehensive database on systemic banking crises that have occurred since the late 1970s. The database also includes information on borderline (non-systemic) banking crises during the same period.Publication The Environmental Implications of Privatization : Lessons for Developing Countries(Washington, DC: World Bank, 2002-04)Governments worldwide have increasingly recognized the economic potential and fiscal advantages of privatization. What is less well recognized is that, under the right conditions, privatization can also yield environmental benefits and contribute to sustainable development. This report reviews a number of case studies to draw lessons about the environmental implications of privatization. It emphasizes that privatization offers an opportunity for making strategic decisions with longer-term impacts; streses that integrating environmental and social considerations into the privatization process leads to better, more sustainable outcomes; and recommends approaches to building on the positive linkages between privatization and environmental protection.Publication Agricultural Trade Liberalization in a New Trade Round : Perspectives of Developing Countries and Transition Economies(Washington, DC: World Bank, 2001-09)This discussion paper contains seven studies, designed to a) review, and assess the impact of the implementation of the Uruguay Round (UR) Agreement on Agriculture, and, b) to analyze the key issues, interests, and options for developing countries in the new World Trade Organization's (WTO) round of multilateral trade negotiations in agriculture. Six regional case studies are presented: Sub-Saharan Africa, South Asia, Latin America, Eastern Asia, Central and Eastern Europe, and industrial countries. A quantitative analysis of the dynamics of multilateral liberalization in food, and agricultural trade is also presented. Among some of the key conclusions, it is suggested that much preparatory work was achieved in bringing agriculture fully into the multilateral trading system during the UR, and, a significant achievement was the development of a broad framework for reductions in trade-distorting policies. The UR was also successful in negotiating reduced volumes of subsidized exports, and in providing at least, minimum levels of access to markets. There were, however, a number of limitations in both what was agreed to, and in how the Agreement in Agriculture has actually been implemented, as the analyses show that the work achieved during the UR, will be of limited value, unless market distortions in agriculture can be reduced substantially. If liberal agricultural trade is to succeed, its limitations should be addressed, and policy induced distortions to agricultural production, be substantially reduced.Publication The Indian Pharmaceutical Sector : Issues and Options for Health Sector Reform(Washington, DC: World Bank, 2002-09)This report assesses the pharmaceutical sector in India, particularly focusing on four key issues related to the production, procurement, and distribution of drugs in India: a) availability, b) affordability; c) quality, and d) the rational use of drugs. The results of a survey of three states indicate considerable variation across states in the above four areas in both public and private sectors. The report concludes that problems with the availability, affordability, and rational use of good quality, cost-effective, essential drugs have persisted in most parts of India, and that these health-related issues need be addressed as a priority. An overarching recommendation is the need to focus on strengthening the implementation and regulation of the pharmaceutical sector at the state level, rather than on simply introducing new regulations. Adequate pharmaceutical quality assurance needs to be particularly emphasized as, in its absence, other reform measures could be rendered moot. Similarly, the rational use of drugs needs to be emphasized as it is likely to yield significant cost savings to the government and to consumers, in addition to its positive impact on health.
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication Development of a Regional Power Market in the Greater Mekong Sub-Region : Compatibility of Regulatory Systems and Pricing Principles(World Bank, Washington, DC, 2001-12)A 1999 study by the Bank, which summarized the unprecedented opportunity for economic, and environmental benefits for individual countries, and the entire Greater Mekong Sub-region (GMS) associated with cross-border power trade, concluded that a full trade scenario, could yield significant savings over the next two decades, even before quantifying substantial environmental benefits. Based on these conclusions, GMS member countries were surveyed (attached as an appendix), and, this report compares the status of institutional/regulatory, and commercial policies across the region, to provide background information. Specifically, the focus is on the compatibility of national regulatory systems, especially for wheeling; the compatibility of pricing principles at both production, and transmission; and, the potential barriers to enhanced trade, which are revealed in this review. Section 2 provides a brief review of on-going reforms in member countries. Section 3 compares progress with respect to key regulatory, and commercial issues (particularly pricing) most critical to power trade, noting barriers to expanded power trade revealed through the country comparisons.Publication Introducing Competition into the Electricity Supply Industry in Developing Countries : Lessons from Bolivia(Washington, DC, 2000-08)This report summarizes the Bolivian power sector reform experience from 1993 until the end of 1999. The reform of Bolivia's electric sector is considered one of the most successful to date. Bolivia opted for both vertical and horizontal separation. Large power company generations units were capitalized; transmission grid and distribution were privatized. Since the capitalization or privatization, there has been a dramatic expansion in generation capacity, and distribution networks are also growing well. However, access to electricity remains limited. The main issues in the sector are now a) privatizing the smaller systems, and b) expanding access in the under-served rural areas. A review will be essential after a few years of implementation. The effect of power sector reform on poverty alleviation will need to be assessed at that point.Publication Shanghai : Developing a Green Electricity Scheme(World Bank, Washington, DC, 2006-09)This report documents the experience of developing a green electricity scheme in Shanghai, China. It is intended to be a resource when replicating this effort in another city or country. The study consists of two parts. In Part 1, the general characteristics of both the framework for green electricity products and the market for green electricity products are presented. It also presents a summary of international experience, including a description of the green electricity concept and the market penetration in different countries, the characteristics of frameworks under which renewable electricity products are developed, and the characteristics of products developed under these frameworks. Different options for verifying and certifying frameworks are discussed on the basis of case studies. Finally, the required institutional framework and options for awareness creation and marketing are examined. In Part 2, the culminating framework and product characteristics for Shanghai are presented. The report provides a description of the scope of green electricity in Shanghai and it also describes the emerging Shanghai framework for green electricity products. At the end of Part 2, the report addresses the remaining issues concerning the development of the framework and the product. In addition, recommendations are provided for further development and the next steps.Publication The Bank's Assistance to China's Energy Sector(World Bank, Washington, DC, 2005-04-27)China is the second largest energy consumer in the world and the largest producer and consumer of coal. Owing to its large coal resources, it is and will remain in the foreseeable future largely energy self-sufficient, although crude oil imports have steadily increased since 1993. In just 17 years, China has become the Bank's largest borrower in the energy sector having received about 7 billion dollars in loans to date. The Bank has also carried out a substantial amount of analytical and advisory services. Despite the amount of lending to the energy sector, the sheer size of the sector in China has made the World Bank, at least in financial terms, a relatively marginal player. The Bank s assistance aimed at helping China's integration into the global economy. It focused on removing bottlenecks to the country's accelerating economic growth and on institutional development (emphasizing technology transfer and capacity building). After the major policy breakthroughs of the mid-1990s in the power sector, progress on sector reform has slowed and major policy issues in such critical subsectors as coal, oil, and gas have largely gone unattended. To address this, the Bank can choose to focus increasingly on peripheral subsectors such as renewables and energy efficiency where policy issues are less sensitive and government buy-in more likely. A more difficult path will be for the Bank to continue its sizeable financial support to the energy sector but frame it within a truly comprehensive dialogue on national energy policy issues.Publication Primer on Demand-Side Management : With an Emphasis on Price-Responsive Programs(Washington, DC, 2005-02)The practice of Demand-Side Management (DSM) has evolved over the past three decades in response to lessons learned from implementation in different global settings, and also in response to the changing needs of restructured power markets. The most notable change that is occurring today is the inclusion of programs that emphasize price responsiveness in the DSM portfolio. Traditionally, DSM programs were confined to energy efficiency and conservation programs with reliability-driven load management programs being used occasionally to manage emergency situations. Electric prices were taken as a given when designing such programs, hampering the eventual success of all such efforts. This Primer has been written to introduce the new concepts of price-responsive DSM that are currently being investigated in a variety of different market settings. It highlights different criteria and taxonomies for classification and evaluation of DSM programs and recommends programs that will likely provide a better fit with the objectives, expected needs and outcomes of DSM initiatives in developing and transition countries. As defined in this primer, such initiatives include both load shifting programs (that either clip peak loads or shift energy used in the peak period to off-peak periods) and efficiency programs (that reduce the total amount of energy). The purpose of the primer is to provide successful examples of price-responsive DSM programs from the developed world and by discussing their workings, show that they can be also be applied to the developing world. Of course, before price-responsive programs can be implemented in the developing world, certain pre-requisites pertaining to metering and billing practices would have to be implemented. These are discussed in the report.
Users also downloaded
Showing related downloaded files
Publication Lebanon Economic Monitor, Fall 2022(Washington, DC, 2022-11)The economy continues to contract, albeit at a somewhat slower pace. Public finances improved in 2021, but only because spending collapsed faster than revenue generation. Testament to the continued atrophy of Lebanon’s economy, the Lebanese Pound continues to depreciate sharply. The sharp deterioration in the currency continues to drive surging inflation, in triple digits since July 2020, impacting the poor and vulnerable the most. An unprecedented institutional vacuum will likely further delay any agreement on crisis resolution and much needed reforms; this includes prior actions as part of the April 2022 International Monetary Fund (IMF) staff-level agreement (SLA). Divergent views among key stakeholders on how to distribute the financial losses remains the main bottleneck for reaching an agreement on a comprehensive reform agenda. Lebanon needs to urgently adopt a domestic, equitable, and comprehensive solution that is predicated on: (i) addressing upfront the balance sheet impairments, (ii) restoring liquidity, and (iii) adhering to sound global practices of bail-in solutions based on a hierarchy of creditors (starting with banks’ shareholders) that protects small depositors.Publication The Journey Ahead(Washington, DC: World Bank, 2024-10-31)The Journey Ahead: Supporting Successful Migration in Europe and Central Asia provides an in-depth analysis of international migration in Europe and Central Asia (ECA) and the implications for policy making. By identifying challenges and opportunities associated with migration in the region, it aims to inform a more nuanced, evidencebased debate on the costs and benefits of cross-border mobility. Using data-driven insights and new analysis, the report shows that migration has been an engine of prosperity and has helped address some of ECA’s demographic and socioeconomic disparities. Yet, migration’s full economic potential remains untapped. The report identifies multiple barriers keeping migration from achieving its full potential. Crucially, it argues that policies in both origin and destination countries can help maximize the development impacts of migration and effectively manage the economic, social, and political costs. Drawing from a wide range of literature, country experiences, and novel analysis, The Journey Ahead presents actionable policy options to enhance the benefits of migration for destination and origin countries and migrants themselves. Some measures can be taken unilaterally by countries, whereas others require close bilateral or regional coordination. The recommendations are tailored to different types of migration— forced displacement as well as high-skilled and low-skilled economic migration—and from the perspectives of both sending and receiving countries. This report serves as a comprehensive resource for governments, development partners, and other stakeholders throughout Europe and Central Asia, where the richness and diversity of migration experiences provide valuable insights for policy makers in other regions of the world.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication Argentina Country Climate and Development Report(World Bank, Washington, DC, 2022-11)The Argentina Country Climate and Development Report (CCDR) explores opportunities and identifies trade-offs for aligning Argentina’s growth and poverty reduction policies with its commitments on, and its ability to withstand, climate change. It assesses how the country can: reduce its vulnerability to climate shocks through targeted public and private investments and adequation of social protection. The report also shows how Argentina can seize the benefits of a global decarbonization path to sustain a more robust economic growth through further development of Argentina’s potential for renewable energy, energy efficiency actions, the lithium value chain, as well as climate-smart agriculture (and land use) options. Given Argentina’s context, this CCDR focuses on win-win policies and investments, which have large co-benefits or can contribute to raising the country’s growth while helping to adapt the economy, also considering how human capital actions can accompany a just transition.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.