Sustainability of electricity markets

Abstract

The chapter deals with types of electricity market organizational models and provides analysis of electricity market models all over the world by presenting their main features, strength and weaknesses. The chapter provides sustainability assessment methods and develops framework for sustainability assessment of electricity markets. The application of developed sustainability assessment tool for sustainability assessment of electricity market models in various countries is provided. The comparative multi-criteria assessment of electricity market models provides valuable insights into restructuring of electricity sector and opening of electricity market. One of the main issues of sustainability is use of renewable energy sources for electricity generation. The chapter provides analysis of the impact of the electricity market opening and regulation on penetration of power generating technologies, including renewable in several countries. The chapter aims to identify how the regulatory and non-regulatory factors have influenced investors’ choices. A several country case studies were applied to analyse and address the following key topics to draw some policy guidelines regarding the main factors that have influenced investors’ choice of technology mix in both mature markets and those that are in transition. The major findings of the analysis entail: the main driving forces behind the rationale for reform; electricity reform characteristics; and electricity market reform and non-reform related factors that have influenced investor’s choice for a specific generation technology or a technology mix. Other important sustainability issues such as GHG emission reduction, energy efficiency improvement, energy import dependency etc. are addressed in sustainability assessment of electricity market models.