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Electricity Trading in Energy Market Integration: A Theoretical Review

Author

Listed:
  • Muhumuza Ezra Rubanda

    (Faculty of Economics, Energy and Management Science, Makerere University Business School (MUBS), Plot 21A Portbell Road, Nakawa, Kampala P.O. Box 1337, Uganda)

  • Livingstone Senyonga

    (Faculty of Economics, Energy and Management Science, Makerere University Business School (MUBS), Plot 21A Portbell Road, Nakawa, Kampala P.O. Box 1337, Uganda)

  • Mohammed Ngoma

    (Faculty of Entrepreneurship and Business Administration, Makerere University Business School (MUBS), Plot 21A Portbell Road, Nakawa, Kampala P.O. Box 1337, Uganda)

  • Muyiwa S. Adaramola

    (Faculty of Environmental Sciences and Natural Resource Management, Norwegian University of Life Sciences (NMBU), Høgskoleveien 12, 1433 Ås, Norway)

Abstract

This paper surveys theory and practice on how a larger and integrated energy market can propel electricity trading through economies of scale. We make a systematic presentation of theories and methods used by various scholars to generate knowledge on integrated electricity markets. We discuss paradigms, concepts, and practices emanating from the complex topic of a unified electricity market with an intent to identify gaps. We conclude that electricity trading in EMI has a propensity to drive both economic integration and sustainable energy access; that crafting ways and means for integrating cross-border systems without sacrificing the local economy could make the idea of EMI more palatable to partner countries; and that adoption of ex ante studies that are non-data oriented could improve the design of upcoming regional electricity markets.

Suggested Citation

  • Muhumuza Ezra Rubanda & Livingstone Senyonga & Mohammed Ngoma & Muyiwa S. Adaramola, 2022. "Electricity Trading in Energy Market Integration: A Theoretical Review," Energies, MDPI, vol. 16(1), pages 1-31, December.
    • Handle: RePEc:gam:jeners:v:16:y:2022:i:1:p:103-:d:1011125
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