Investigating the Relevance of Market Model Power Sector Reforms – 30 Years On

This paper provides a critical review of the economic basis of the OECD power sector model, interrogating its relevance for desired sector outcomes in both developed and developing countries. The paper finds that the OECD model – as well as the related non-OECD standard model – has not been implemented in its ideal form in any country, in part due to the fact that it was ineffectively translated into a well-defined market design, comprising of distinct and implementable components. However, the paper also argues that the application of the model has been hampered by political economy contextualities where necessary sector reforms have been incongruent with entrenched political and economic interests, theoretical and ideological paradigms, and institutional and power equilibria. The role of political economy contextualities in obstructing the evolution of power systems in line with technological, communications, and financial innovations, suggest that the relevance of model reforms may lie in breaking such undesirable institutional equilibria. Three case studies are put forward to better explore these arguments. The paper concludes by considering the relevance of specific power sector reforms for emergent concerns – environmental sustainability and energy security – given recent advances in the technological options available to developed and developing countries.

By: Anupama Sen , Rahmat Poudineh , Catrina Godinho , Anton Eberhard

Latest Tweets from @OxfordEnergy

  • LNG in marine transport – is it about to become the environmentally-friendly fuel of choice? https://t.co/iN1e4pdLX7

    September 18th

  • OIES presentation quoted on impact of Iranian sanctions: oil market backdrop different with crude stocks below 5-ye… https://t.co/rwJaHHwzbk

    September 15th

  • OIES’s @thierry_bros on the need to move from oil to energy storage for the benefit of all - https://t.co/8yAzoF3pf4

    September 14th

Sign up for our Newsletter

Register your email address here and we will send you notification of new publications, comment, articles etc. automatically.