Deregulation can increase electricity supply

Forecasts have shown that by 2032 electricity demand will be higher than electricity supply. Electricity deregulation by governments can help increase supply by removing restrictive electricity regulations and increasing private sector involvement. NRG Expert’s comprehensive market research includes an overview of electricity regulations and rules including, the effect of electricity privatisation on the market in each region and its  electricity generation capacity.

NRG Expert has analyzed electricity regulation in each region of the world. Here are some research highlights:

Electricity regulation loosened to encourage private sector involvement

A shortage of installed electricity generation capacity is a pressing issue for the electricity supply sector. To meet the growing electricity demand , electricity privatisation is expected to increase, along with the import and export of electricity between countries.


Regional Highlights:

Electricity Deregulation in Europe

Full market opening in the EU has taken place in all of the original 15 EU member states and new ascension countries except Estonia and Hungary.

Further grid integration is occurring between the countries resulting in more import and export of electricity. There are now eight major electricity exchanges in the region and many minor markets, some of which have expanded to include more European countries in recent years. For example, the Nord Pool expanded to open the Kontek bidding area in Germany in 2005. Then five years’ later opened a bidding area in Estonia and delivered a technical solution for a new Lithuanian market place.

Electricity Deregulation in the CIS

Electricity privatization has been increasing in the CIS in the form of independent power projects (IPPs) and the market is opening up in order to attract funding to the sector, but there has been little progress towards market liberalisation. Electricity regulations are being changed continually, for example in Azerbaijan the Law of the Republic of Kazakhstan on Electricity was implemented in January 2009, which includes the free pricing of energy generating organisations.

Electricity Deregulation in the Middle East

The private sector is mainly involved in IPP projects, and now the electricity grids of major countries in the region are interconnected.

Electricity Deregulation in the Americas

A shift in ownership is occurring from regulated utilities to competitive suppliers in North America.

There is increasing electricity privatization in Latin America and the sector is fully privatized in Chile.

Electricity Deregulation in Asia

The private sector is mainly involved in IPP projects, and in some countries a more attractive market has been created. For example, in China, in 2009, the electricity pricing system was altered to allow electricity producers and wholesale end-users to negotiate directly with each other, and the electricity price for all sectors, except residential, were raised, but only to $0.04/kWh. Electricity rates were raised further for energy-intensive industries were raised by 50% to 100% in June 2010.

Electricity Deregulation in Africa

The power sector is mainly government owned in Africa. Of the potential markets for liberalisation, South Africa is the most promising after the government announced plans in February 2010 for an independent system and market operator independent from Eskom.

For further information on the impact of deregulation and privatisation, please review NRG Expert’s Reports and Database at

>> Global Electricity Degregulation Report – market research

>> Global Regulators Database

>> Global Water Deregulation Report – market research

>> Global Gas Deregulation Report – market research

*Special offer – If you purchase all 3 Deregulation Reports for 3995GBP, you will receive the Global Regulators Database for FREE.



Edgar van der Meer
NRG Expert
Toronto +1 (416) 840-5847
London +44 (0)20 8432 3059

Background information

NRG Expert is a London and Toronto based energy intelligence and market research publisher. NRG Expert provides up to date information and analysis on worldwide energy markets, including the gas, water and electricity market. The Electricity Deregulation Report reviews electricity regulation and privatization. A regulators database is also available.

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