International Journal of Advances in Electrical Engineering
2025, Vol. 6, Issue 2, Part A
Impact of market design on the stability and reliability of electricity markets in emerging economies
Author(s): Mariana Costa Ribeiro and Lucas Andrade Silva
Abstract: Electricity markets in emerging economies are increasingly challenged by rising demand, renewable energy integration, and evolving policy frameworks. This study investigates the impact of market design on system stability and reliability, with a comparative focus on India, South Africa, and Brazil between 2018 and 2023. Using a mixed-methods approach, the research combines descriptive statistics, regression modeling, and group comparisons to examine how capacity mechanisms, balancing markets, institutional strength, and grid investment influence system reliability, measured primarily through SAIDI indicators. The results demonstrate that adaptive and transparent market designs, including capacity remuneration and real-time balancing arrangements, are strongly associated with lower interruption durations, reduced price volatility, and improved adequacy ratios. In contrast, markets without these features continue to face instability and frequent reliability crises. The findings also highlight that renewable energy integration improves reliability only when complemented by supportive market structures and flexible resources. Brazil’s consistently strong performance underscores the effectiveness of integrated design frameworks, while South Africa’s challenges reflect the consequences of incomplete reforms. The study concludes that adaptive, incentive-aligned, and institutionally grounded market designs are crucial for ensuring reliability and resilience in emerging economies. Practical recommendations include implementing credible capacity mechanisms, modernizing balancing markets, strengthening regulatory governance, investing in grid modernization, and developing complementary measures such as storage and demand response. These results provide policymakers with clear evidence that electricity market design is not a one-size-fits-all model but must be tailored to local institutional contexts to deliver stability, efficiency, and long-term energy security.
Pages: 36-40 | Views: 413 | Downloads: 129
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How to cite this article:
Mariana Costa Ribeiro, Lucas Andrade Silva. Impact of market design on the stability and reliability of electricity markets in emerging economies. Int J Adv Electr Eng 2025;6(2):36-40.
