Market Design Approach for Unreliable Grid with Distributed Generation and Private Microgrids

The electricity sector in many developing countries has been an unsustainable fiscal burden due to the price of subsidies, technical losses, and aging of the power infrastructure. Electricity sector reforms and shift from government ownership and centralized organization to private ownership, public regulation, and market competition is required in these countries to have a reliable, affordable, and sustainable system. This research proposes steps to reform such electricity sectors by introducing a competitive market scheme. An energy market structure and its regulatory framework is proposed. A case study is shown for Lebanon, whose electricity sector has suffered for decades.