World Bank2014-02-252014-02-252011-07https://hdl.handle.net/10986/17146The objectives of this study are to develop a taxonomy of the existing power market structures, as shown by the extent of vertical and horizontal unbundling found among restructured power systems, across developing countries; to design an analytical framework for assessing the desirability of unbundling under the variety of economic conditions found among developing countries; and To propose insights for operational guidance on alternative market structures based on relevant criteria, in particular on the initial conditions of a country and its power sector. The study specifically examines whether power system size and country per capita income can be reliable indicators of initial conditions for guiding policy on power market structure. This guidance is needed to address issues such as whether there are solid foundations for recommending vertical unbundling for small power systems in low-income countries, particularly in the absence of short term privatization prospects. The policy recommendations therefore have to be tailored to the specific taxonomy of market structures that characterize the electricity sector in developing countries. The study reports the evidence from econometric analysis and case studies on the (relative) success of achieving the objectives of unbundling. These objectives may be to enhance transparency and governance, attract private sector investment, and/or to create a competitive market and ultimately its impact on performance. The study has an analytical approach to model market structure, together with ownership and regulation, controlling for several variables, as determinants of performance across several indicators of performance, including access, operational and financial performance and environmental sustainability.en-USCC BY 3.0 IGOaccess to electricityapproachauctionsavailabilityaverage performanceaverage tariffbenchmark competitionbenchmarkingbenchmarking approachbulk powerburning fossil fuelsCapacity buildingcapacity utilizationcapital costsCapital expenditurecapital investmentCapital marketCarboncarbon dioxidecarbon dioxide emissionscarbon emissionscash flowcoalcommercializationcompetition in generationcompetitive power marketcompetitive pressurecompetitive wholesale marketcompetitivenesscost increasescost of energyCost Recoverydegree of concentrationdemographicsdieseldistribution companiesdistribution entitydistribution networkdivestitureeconometric methodsEconometricseconomic conditionseconomic costseconomic efficiencyeconomic factorseconomic performanceEconomicseconomies of scaleeconomies of scopeefficiency improvementselectric industryelectric utilitieselectricityElectricity DistributionElectricity Generationelectricity generatorselectricity marketelectricity productionelectricity reformselectricity sectorelectricity supplyelectricity tariffelectricity tariffselectricity utilitiesEmissionempirical analysisempirical basisempirical evidenceempirical studiesend usersenergy infrastructureenergy mixenergy policyenergy sourceEnergy TransmissionEnterprise Performanceenvironmentalenvironmentsexclusive rightsexpenditurefinancial constraintsFinancial Marketsfinancial riskfinancial risk managementfossilfossil fuelsfree entrygasgenerating capacitygenerationgeneration capacitygeneration servicesgeneratorsgovernment policiesholding companyhorizontal integrationhydro-powerhydroelectric powerhydropowerimpact of regulationincumbent utilitiesIndependent Power Producersindustrial pricesinfrastructure service providersinternational investorsinvestment incentivesLabor Marketlabor productivitylabour productivityload factorlower cost of capitallower tariffsmarket competitionmarket concentrationmarket conditionsmarket powermarket reformmarket regulationmarket risksMARKET STRUCTUREmonopolymonopoly powernational incomenatural gasnatural monopolynuclear powernuclear power plantsoiloil importsopen accessOperational Efficiencyoutsourcingownership structureperformance indicatorspetroleumpolicy instrumentspolicy makersPolitical EconomypollutionPOWERpower companiespower demandpower generationpower marketsPower Producerspower purchasepower purchase agreementsPOWER SECTORpower sector reformspower sectorspower stationpower supplierspower supplypower systempower system operatorpower systemsprimary energyprivate capitalprivate investorprivate operatorsprivate ownershipprivate sectorprivate sector investmentPrivate Sector Participationprivatizationpublic goodpublic ownershipregulatorsregulatory agencyRegulatory Capacityregulatory frameworkregulatory reformsrenewable energyresidential pricesretailretail competitionretail marketretail ratesretail salesRetail utilitiesreturns to scalerisk managementsalesalesservice reliabilitysingle buyer modelspreadsuppliersupplierssupply chainsupply costssupply industrysurplusSustainable Developmenttariff ratestendersthermal powerthermal power plantstotal coststradertransaction coststransmission gridtransmission infrastructuretransmission networksunbundlingutilitiesvertical integrationvoltagewholesale competitionwholesale electricitywholesale electricity marketwholesale marketswholesale powerwholesale priceswind10.1596/17146