Approaches to the formation of energy service markets in developing countries

Abstract

The majority of developing countries are experiencing similar problems in the formation of an energy service infrastructure after reforms in the electric power sector. These problems are connected with spontaneous competition between energy service companies, ensuring the growth of their business efficiency and reduction in the quality of provided services. The purpose of this study is to develop an appropriate model for the energy service market. It was determined that the development of market mechanisms in the energy service contains three main pillars: the legitimization of service activities, the optimization of market structure and the development of staff capacity in energy service companies. Also the importance of involving energy service companies in the process of creating organizational and economic innovation in the industry was proved. As a part of the analytical tools a technique that provides an estimation of the capacity of an energy service market was developed.