Challenges and opportunities for introducing end to end electricity market in Sri Lanka: lessons from international case studies.

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.