The Development of Electricity Markets in the Euro-mediterranean Area: Trends and Prospects for Liberalization and Regional Intergration

Overview

Electricity markets world-wide are undergoing a transformation, as state-owned and vertically integrated monopolies are being replaced by competitive dynamics and private participation. Policy reforms driving this transformation include the corporatization and restructuring of state-owned utilities; the unbundling of generation, transmission, and distribution; the creation of independent regulators; and the promotion of private sector involvement in investment and management.

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Overview

Electricity markets world-wide are undergoing a transformation, as state-owned and vertically integrated monopolies are being replaced by competitive dynamics and private participation. Policy reforms driving this transformation include the corporatization and restructuring of state-owned utilities; the unbundling of generation, transmission, and distribution; the creation of independent regulators; and the promotion of private sector involvement in investment and management.

This study reviews international reform trends and best practice in sector policy, with specific reference to Latin America. It documents how regulatory reform, privatization, and cross-border integration are unfolding throughout the European Single Market, triggered by EU legislation. This study also shows that sector performance and sector reforms in the southern Mediterranean countries are lagging considerably behind international trends. Finally, it argues that a number of reform initiatives at the national and regional level should be taken to promote policy reforms and cross-border integration in this sector. This would help the countries of North Africa and the Middle East to increase economic efficiency, consolidate public finances, attract foreign direct investment, and to more effectively 'plug into' the European Single Market on the northern shore of the Mediterranean Sea.

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Product Details

  • ISBN-13: 9780821349106
  • Publisher: World Bank Publications
  • Publication date: 4/1/2001
  • Series: World Bank Technical Papers , #491
  • Pages: 80
  • Product dimensions: 8.30 (w) x 10.50 (h) x 0.20 (d)

Table of Contents

Foreword
Acknowledgments
Executive Summary
1 Introduction
1.1 The Euro-Mediterranean Partnership and Economic Adjustment 2
1.2 Global Trends in Electricity Sector Policy 5
1.3 The South American Reform Experience 8
1.4 A Check List: Best Practice in Electricity Sector Reform 10
2 Power Sector Reform in the European Union
2.1 Introduction 14
2.2 Liberalization 17
2.3 Regulatory Institutions 23
2.4 The Development of Electricity Markets and Power Trading 24
2.5 Restructuring at the Utility Level 27
2.6 Cross-Border Electricity Markets and EU Enlargement 29
3 Power Sector Policies of the Mediterranean Partners
3.1 Introduction 34
3.2 Policy Challenges and Reform Efforts in Individual MPs 37
4 The Way Forward: National Reforms and Regional Initiatives
4.1 Introduction 56
4.2 Regional and National Projects 59
4.3 Interconnections and Cross-Border Trade 62
Bibliography: Energy Websites and Further Reading 67
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