Bacon, Robert2012-08-132012-08-131995-05Viewpoint. -- Note no. 47 (May 1995)https://hdl.handle.net/10986/11672Introducing independent power producers (IPPs) into a power system where existing generators are inefficient can deliver more efficient investment. But it is not sufficient to achieve the operating benefits of competition. Key to determining whether or not the IPPs and the system as a whole will operate efficiently are the power and energy sales contracts with the IPPs. The author surveys a range of power purchase agreements and highlights their risks and benefits for operational efficiency.CC BY 3.0 IGOBIDDINGCONSUMER PRICE INDEXCONSUMER PRICESCONSUMERSCONTRACTUAL ARRANGEMENTSCOST INDEXESCOST SAVINGSENERGY COSTSENERGY DEPARTMENTENERGY PRICEGENERATORHEATINDEXATIONMARKET POWERMARKET SHAREMARKETINGPOTENTIAL INVESTORSPOWER SECTOR REFORMPOWER SYSTEMPRICE COMPETITIONPROFIT MOTIVESALESSALES AGREEMENTSSUPPLIERSTOTAL COSTS DENATIONALIZATIONPOWER DISTRIBUTIONPOWER GENERATIONELECTRIC POWER GENERATIONELECTRIC UTILITIESPURCHASE TRANSACTIONSENERGY INDUSTRIESENERGY SUPPLYENERGY PRICESMARKET COMPETITIONWorld Bank10.1596/11672