Analysing the Impact of Electricity Market Reforms on Small Producers

Abstract

Electricity market reforms, pivotal in shaping the energy landscapes of both developed and emerging economies, have garnered significant attention in academic and policy circles. This review, drawing from existing research, seeks to understand the nuanced implications of these reforms, particularly on small producers who are integral to the energy matrix. By synthesising insights from seminal works on the subject, we aim to elucidate the multifaceted consequences of electricity market reforms. Our exploration reveals that while reforms can potentially streamline operations and optimise price-cost margins, their tangible impact is moulded by diverse factors, from fuel costs and technological shifts to market structures. The intricate relationship between regulatory accounting, tariff dynamics, and the overarching goals of market regulators emerges as a recurrent theme. As the global energy paradigm undergoes transformation, this review underscores the need for a holistic understanding of market reforms, ensuring a balanced and sustainable energy future for all players in the sector.