Since a couple of years, new actors and new modes of operation, driven by technology and business innovations and policies are increasingly entering the power sector, pivoting in industrialized countries. These innovations challenge the customary hierarchies, reverting energy flows and imposing new operational modes, and provoke new business models. This has profound consequences for the institutional arrangements.
In consequence, international cooperation is well advised to assess the consequences of the ongoing changes in the power sector for its energy sector strategies which are closely related to environment and climate matters.
The present paper was drafted for GIZ GmbH, the German Corporation for International Cooperation, to initiate and inform the discussion on the implications of current and upcoming profound power sector changes for developing economies and the role of International cooperation. It points out the various innovations, the profound changes and transformations of the power sector en course in some first mover countries with mature power sectors, systemizing the different drivers and responses as well the compound impact and institutional adaptations and changes. It tries to give an overview of the various interdependent, mutually enforcing or counteracting developments and the responses in industrial countries. On this basis it offers a framework and some ideas for the discussion on institutional arrangements and dynamics in the power sectors in developing countries n response to the technical, business and regulatory innovations, given their priorities.
A specific paper is in preparation on the observed and expected changes in dfeveloping countries, to be published by GIZ GmbH.
Dr. Paul H. Suding Mail: email@example.com
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