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Institutional Determinants of Thermal Power Sector Economic Productivity

русская версия

Опубликовано на портале: 18-04-2019
In relation to development of the energy industry of Russia from the point of view of the recent economic developments such as, for example, economic and financial crisis, the phenomena in the market and investment constraints, as well as the issues of handling production assets and capital of electrical power corporations and enhancing the accuracy of development of thermal power plants asset management methods gain specific significance. It becomes apparent that certain substantial economic measures and reforms are needed for increasing the vitality of the power sector in general and thermal power plant sector in particular. Our paper focuses on the institutional determinants of the thermal power sector that are undertaken with a purpose of enhancing its economic and financial productivity. We analyze the neo-institutional standpoint which proclaims that reforming the energy sector involves reorganizing regulatory and governance frameworks involving market-based demand and supply conditions by slowly reducing the monopolistic features of manufacturing and distribution of power. Moreover, we investigate whether incomplete power industry reforms, or incompatible associations and associations originating out of reforms, have led to exacerbating power industry inefficiencies. Our results show that thermal power sector in Russia is in need of substantial re-organization and profound reforms that would increase its viability and economic productivity.
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