Approaches To The Formation Of
Energy Service Markets In Developing Countries
Author(s)
M. Kozhevnikov
Abstract
The majority of developing countries are experiencing similar problems in the
formation of an energy service infrastructure after reforms in the electric power
sector. These problems are connected with spontaneous competition between
energy service companies, ensuring the growth of their business efficiency and
reduction in the quality of provided services. The purpose of this study is to
develop an appropriate model for the energy service market. It was determined
that the development of market mechanisms in the energy service contains three
main pillars: the legitimization of service activities, the optimization of market
structure and the development of staff capacity in energy service companies.
Also the importance of involving energy service companies in the process of
creating organizational and economic innovation in the industry was proved. As
a part of the analytical tools a technique that provides an estimation of the
capacity of an energy service market was developed.
Keywords: energy service, energy efficiency, market development, reform design,
market capacity, demand-side management.
1 Introduction
A large number of developing countries were reforming the electricity industry
in the 1990s and the first half of the 2000s, and the main purpose of this
restructuring was to attract private investment in the sector. During this period
particularly Asian countries have experienced unprecedented economic growth,
which is directly reflected in the growth rate of energy consumption. For
example in China for the first four months of 2003 it amounted to 16.3%, three
times higher than expected, resulting in more than half of the Chinese provinces
Energy Production and Management in the 21st Century, Vol. 1 27
www.witpress.com, ISSN 1743-3541 (on-line)
WIT Transactions on Ecology and The Environment, Vol 190, © 2014 WIT Press
doi:
Keywords
energy service, energy efficiency, market development, reform design,
market capacity, demand-side management
Related Book
Other papers in this volume
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