The Impacts of Deregulation of the Electricity Markets: A Comparative Study of International and Local Case Studies

Abstract

The Energy sector plays a crucial role in promoting economic development and sustainability, and energy reforms are vital for achieving a sustainable economic growth. Within the energy sector, the electricity sector holds significant importance, and reforms in this sector can have considerable impacts on the broader economy of a country. This research paper aims to evaluate the impact of energy reforms on the electricity sector, specifically focusing on policies that promote competition, innovation, and technological advancements. Through a comparative analysis of international and local case studies from the USA, Ethiopia, Nigeria, India, Singapore, and Sri Lanka, this paper assesses the micro and macroeconomic effects of energy reforms on power pricing, power markets, electricity accessibility, innovation, and competitiveness. The historical development of state-owned electricity monopolies and their impact on competition, innovation, technological advancements, pricing, and service quality in the electricity sector is also examined. Furthermore, the study analyzes the role of government oversight and regulations in managing state-owned monopolies to ensure fair market practices. This research paper contributes to a more nuanced understanding of the complex relationship between state ownership and market competition in the energy sector. The findings of this study can inform policymakers and stakeholders in Sri Lanka and other developing countries on the potential benefits and drawbacks of expanding state-owned electricity monopolies in the context of ongoing energy sector reforms. Overall, this study provides insights for designing and implementing effective energy policies that promote sustainable economic growth and development.