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Institutional arrangements for the promotion of regional integration of electricity markets: International Experience

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  • Musiliu O. Oseni
  • Michael Pollitt

Abstract

This paper focuses on the institutional arrangements for facilitating electricity regional cooperation. We begin by discussing the theory of international trade cooperation in electricity, with a view to discussing what preconditions might be important in facilitating wide area trading across national borders. We then discuss two sets of case studies. The first set of case studies focuses on three regional developing country power pools – the Southern African Power pool (SAPP), West African Power pool (WAPP) and the Central American Power Market (SIEPAC). The second set focuses on three regional power pools in more developed countries – PJM in the United States, the Single Electricity Market (SEM) in Ireland and the South East Europe market (ECSEE). These cases highlight both the potential and difficulty of having cross jurisdictional power pools. In the light of the theory and evidence we present, we draw key lessons in the areas of: preconditions for trading; necessary institutional arrangements; practicalities of timetabling; reasons to be hopeful about future prospects; and suggestions for future research.

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  • Musiliu O. Oseni & Michael Pollitt, 2014. "Institutional arrangements for the promotion of regional integration of electricity markets: International Experience," Cambridge Working Papers in Economics 1428, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:1428
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    Cited by:

    1. Oseni, Musiliu O. & Pollitt, Michael G., 2016. "The promotion of regional integration of electricity markets: Lessons for developing countries," Energy Policy, Elsevier, vol. 88(C), pages 628-638.
    2. Shigeru Kimura & Yanfei Li, 2016. "Achieving an Integrated Electricity Market in Southeast Asia: Addressing the Economic, Technical, Institutional, and Geo-political Barriers," Books, Economic Research Institute for ASEAN and East Asia (ERIA), number 2015-rpr-16 edited by Yanfei Li & Shigeru Kimura, January.
    3. Musonye, Xavier S. & Davíðsdóttir, Brynhildur & Kristjánsson, Ragnar & Ásgeirsson, Eyjólfur I. & Stefánsson, Hlynur, 2020. "Integrated energy systems’ modeling studies for sub-Saharan Africa: A scoping review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 128(C).
    4. Agostini, Claudio A. & Guzmán, Andrés M. & Nasirov, Shahriyar & Silva, Carlos, 2019. "A surplus based framework for cross-border electricity trade in South America," Energy Policy, Elsevier, vol. 128(C), pages 673-684.
    5. Rettl, Daniel A. & Stomper, Alex & Zechner, Josef, 2016. "The stability of dividends and wages: Effects of competitor inflexibility," CFS Working Paper Series 549, Center for Financial Studies (CFS).
    6. Singh,Anoop & Jamasb,Tooraj & Nepal,Rabindra & Toman,Michael A., 2015. "Cross-border electricity cooperation in South Asia," Policy Research Working Paper Series 7328, The World Bank.
    7. Yanrui Wu, 2016. "Electricity Market Integration in ASEAN: Institutional and Political Barriers and Opportunities," Chapters, in: Yanfei Li & Shigeru Kimura (ed.), Achieving an Integrated Electricity Market in Southeast Asia: Addressing the Economic, Technical, Institutional, and Geo-political Barriers, chapter 4, pages 109-125, Economic Research Institute for ASEAN and East Asia (ERIA).
    8. Timilsina, Govinda R. & Toman, Mike, 2016. "Potential gains from expanding regional electricity trade in South Asia," Energy Economics, Elsevier, vol. 60(C), pages 6-14.

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    More about this item

    Keywords

    electricity trade; power pools; regional electricity markets;
    All these keywords.

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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