Integrating Independent Power Producers Into Emerging Wholesale Power Markets

Download or read book Integrating Independent Power Producers Into Emerging Wholesale Power Markets written by Fiona Woolf and published by World Bank Publications. This book was released on 2001 with total page 44 pages. Available in PDF, EPUB and Kindle. Book excerpt: Policymakers wishing to introduce wholesale competition into the electricity industry must often reconcile existing independent power producer contracts with new market structures and trading arrangements. For the new market arrangements to bring the benefits of competition to consumers, enough participants must be willing to take market risk. A combination of measures (adaptation of specific market rule, contractual alternatives for enhancing market liquidity, contract buyout provisions, transitional mechanisms) offer promise for reconciling existing contracts with new market structures and reducing the magnitude of above-market costs associated with the contracts.