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

  • OIES's @thierry_bros interviewed by @Dukascopy_TV on a new narrative for gas in Europe. Europe is in a position to… https://t.co/L0eNUnQ6uP

    November 20th

  • Oxford Energy Podcast – Decarbonized Market Design: An Insurance Overlay on Energy Only Electricity Markets https://t.co/6CKiQNN4bR

    November 20th

  • New OIES study on Russia’s gas pivot to Asia: Barring a dramatic change in the terms of trade, it would now seem th… https://t.co/obkFQPlFy8

    November 20th

Sign up for our Newsletter

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