WIT Press

Approaches To The Formation Of Energy Service Markets In Developing Countries


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Page Range

27 - 34




296 kb

Paper DOI



WIT Press


M. Kozhevnikov


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:


energy service, energy efficiency, market development, reform design, market capacity, demand-side management