Abstract:
This paper analyzes the challenges and opportunities
for introducing an end-to-end electricity market in Sri Lanka,
drawing lessons from international case studies. The Sri Lankan
electricity sector faces several issues, including a state-controlled
utility that is not financially efficient, hesitant to innovate and
failure to stick with a fixed policy. The paper reviews literature
on electricity market liberalization and analyzes case studies
from Denmark, Australia, Pakistan, Japan,California and other
countries to identify the requirements, benefits, and drawbacks of
an end-to-end electricity market. The analysis includes a SWOT
analysis of the Sri Lankan power sector, specific challenges
that may arise in the Sri Lankan context, and suggestions to
overcome them. The paper also discusses the impacts of an
electricity market on different stakeholder groups, including
consumers, producers, employees, and policymakers. The conclusion
highlights the main findings and arguments, suggestions
for policymakers and other stakeholders, and key lessons that
can be learned from other countries experiences.
