Power Sector Transformation: Factors Shaping Privatization and Regulatory Governance in developing Countries

Abstract

This study looks at the dynamics of privatizing the power sector in Brazil, Mexico, South Africa, and India considering the role of regulatory agencies. The main variables influencing privatization outcomes are identified by looking at the legal framework, competitive environment, market viability, governmental initiatives, and social and environmental considerations. An extensive case study analysis demonstrates how these many factors interact and influence the privatization of the power sector in various countries. The study looks at each country's experiences to gain understanding, find parallels, and pinpoint techniques, results, and barriers. Also, the main objectives of the study are results and best practices for privatizing the power sector. Although the specifics differ, the goals of the power sector privatization initiatives in India, Brazil, South Africa, and Mexico are to attract private investment, boost competition, enhance service quality, and increase access to electricity. These variations are caused by timelines, governmental requirements, legal and regulatory frameworks, and the importance of social objectives. The privatization of the power sector in developing countries has been slow down by ineffective governance, corruption, poor resource allocation, and regulatory oversight. Service providers have struggled to supply services more effectively, and customers have experienced transmission issues, load shedding, and expensive billing. To satisfy the exponential surge in electricity consumption brought on by economic expansion, privatization is required in these developing nations. Numerous studies show that privatization has enhanced economic contributions. However, the creation of an unbiased independent regulatory authority should be in placed before the start of the privatization to oversight the whole process to safeguard the consumer or end-user rights. Also, long-term policy planning is necessary for stable and sustained growth. Smart privatization has sped up industrialization in Turkey, Malaysia, India, and Mexico by transforming the power sector. These achievements serve as role models for nations looking to develop their economies and industries.