Theoretical Concepts of the Formation of the Electricity Exchange in the Process of Liberalization of the Energy Sector in the World’s Countries

• Main Author: Bolkvadze Nataliia I.
• Format: Article
• Language: English
• Published: PH "INZHEK" 2019-04-01
• Series: Problemi Ekonomiki
• Subjects: electricity exchange; liberalization; energy; electricity; exchange market; market
• Online Access: https://www.problecon.com/export_pdf/problems-of-economy-2019-4_0-pages-6_13.pdf
• ISSN: 2222-0712; 2311-1186

The aim of the article is to study the theoretical concepts of the development and formation of electricity exchanges in the process of the energy sector liberalization as a necessary component of transformation of the global economy. The article analyzes the evolution of the formation of exchange markets in the global economy and identifies the processes that led to the appearance of a particular product on exchanges. The liberalization of the global energy market and its influence on further development of exchange trade are studied. Modern microeconomic theories are considered, in particular, theory of market structures, mechanism design theory, theory of industrial organization and auction theory, to confirm the laws governing the formation of electricity exchanges in the process of liberalization of this sphere. The paper identifies six successive stages of the transformation of electricity markets, which reflect the transition from monopoly to competitive electricity exchange markets: 1) industrialization and urbanization; 2) globalization; 3) monopolization and centralization of energy supply; 4) reorganization of the electricity market through transition from monopoly to competitive markets; 5) liberalization; 6) acquisition by electricity of characteristics of exchange goods.