The electricity industry is changing worldwide: what is the relevance of experience for developing countries?

Electricity industry restructuring is receiving government priority and high level policy focus worldwide. Policy choices and strategies are particularly important for electricity because it is an essential service and because it has a significant impact on society, the economy, and the environment. This paper reviews the major forces shaping the electricity industry. It highlights similarities and differences between the electricity industry in developed and developing countries; and describes how various countries and utilities are responding to the driving forces. Different countries take different paths in dealing with their electricity sector issues. There are often similar objectives (reliability, prices, environment, and equity), but different starting points, different local circumstances, and different weights given to objectives and criteria. Despite differences there are shared driving forces sweeping the industry worldwide. The specific perspective this paper attempts to explore, is the relevance of international trends and experience in developed economies to developing countries.