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Unbundling of transmission networks from generation. Electricity is tradable both through organized power exchanges and bilateral basis. PUBLIC PRIVATE PARTNERSHIP MODELS One of the most recent market structures is what is called Public-Private Partnership (PPP), see Chapter 12. It is a contractual agreement between the public entity responsible for electricity and other private sector investors, whereby electricity supply services are provided by the private sector party. The objective of PPA is to maximize the efficiency of the supply operation or to get more value for the money.
Aspx. Emerging-Markets. (2011). Webpage. swf. Research and Markets. (2011). Webpage. researchandmarkets. com/reports/297475. ScienceDirect. (2011). Webpage. com/science/article/pii/ S0040162506001806. 27 Chapter 3 Planning Criteria ABSTRACT Planning criteria, in general, constitute a set of decision parameters or design variables with which the planner controls the planning scenarios. These criteria are similar to guiding principles and limitations placed on the scenarios for the purpose of narrowing down the selection process.
This means that each area will be served by one electricity company which will operate on commercial basis. The government’s role, in this case, will be in licensing such companies and in setting the electricity tariff. The horizontal model, on the other hand, is based on separating the generation, transmission, and distribution components in the whole country or in certain geographical areas. Each component is then given to one company or more depending on the market size and economics of electricity supply.