The promotion of regional integration of electricity markets: Lessons for developing countries

Abstract

Despite the global concerns surrounding the threats of climate change to both human health and sustainable environments, gasoline-or diesel-powered generators with non-negligible emissions have become a popular choice among Nigerian households due to the poor publicly provided electricity. This study examines the extent to which an improvement in publicly supplied electricity may reduce backup generation and, by implication, reduce emissions from Nigerian homes. The results from a random-effects probit analysis reveal that, although improved electricity service quality would significantly reduce self-generation, self-generation would continue in the country, especially among rich and educated households. The study concludes by highlighting the policy implications of the findings.

Integrated Power Market in West Africa: An Overview

“…One reason for this low volume of energy trade as rightly identified by Oseni, M. O. and Pollitt, M. G as the lack of adequate transmission capacity between the countries [16]. It is obvious that the development of WAPP beyond bilateral power exchanges will require significant 'cross border' investment in transmission capacity.…”

Social and Economic Implications for the Smart Grids of the Future

“…Nowadays, the pressure on the electricity grids is intensifying (Pollitt, 2012;Aksamitauskaitė et al, 2014;Moreno et al, 2015;Loukarakis et al, 2015;Oseni and Pollitt, 2016) and its future is in the clouds (Chawla and Pollitt, 2013). One of the main reasons why this is happening is the commitment for the low-carbon future that most governments of the Western countries made (Levi and Pollitt, 2015).…”

Contracting for the second best in dysfunctional electricity markets

“…For instance, the interconnection capacity utilization of the West African Power Pool (WAPP) and the Central American Power Market (MER) was, respectively, 9% and 4% in 2012. Similarly, the share of cross-border trade to consumption in WAPP and MER power pools accounted for mere 5% and 2% (Oseni and Pollitt 2016). A functioning regional power pool in the South Asia is yet to be established despite vast potential gains from cross-border electricity trade in this region (Singh et al 2015, Timilsina et al 2015.…”

“…A functioning regional power pool in the South Asia is yet to be established despite vast potential gains from cross-border electricity trade in this region (Singh et al 2015, Timilsina et al 2015. There are a number of reasons for poor performance of electricity trading arrangements in developing countries, which include (1) high investment and financing costs of developed grid interconnections; (2) insufficient generating capacity to meet demand of the pool; (3) absence of functioning legal framework for cross-border electricity exchanges; (4) poor trust and mutual confidence among pool members; and (5) lack of regional regulation and mechanism for dispute resolution , Pineau 2008, Reinstein et al 2011, Singh et al 2015, Oseni and Pollitt 2016). …”

“…4 Oseni and Pollitt (2016) note that there is a need for specific trade agreements and enforcement mechanisms to support electricity trade as World Trade Organization rules and arbitration bodies do not adequately address trade in electricity.…”