Deregulation of power systems in Asia: Special consideration in developing countries

Abstract

Power industry is undergoing restructuring throughout the world. The traditional vertically monopolistic structure has been deregulated and replaced by gencos, transcos and discos with competition introduced to gencos and discos in order to reach higher efficiency in electricity production and utilization. A lot of power markets have been established for the purpose. However for different countries, the principal objectives and considerations of power system deregulation are different. In this paper special considerations on power system deregulation of developing countries in Asia are discussed. Two regional power markets in China are used as examples. It is shown that for developing countries, the main objectives of power system deregulation are to attract various investments to power industry in order to meet the fast growth of electric demand caused by blooming economy and in the meantime to reduce government commitment and functions in power industry. Only this way, the power industry, as a significant infrastructure, can realize sustainable development at high efficiency. It is also shown that in the market environment, how to realize optimal system planning and reliable operation at acceptable electricity prices with qualifies service and how to transit to the market environment smoothly at lowest costs and lowest risks should be considered thoroughly. © 2005 IEEE.