An efficient and effective electricity network provides
energy for industrial expansion while also permitting substantive
improvements in living standards for the general public.
Developing countries face particularly difficult challenges in
building and operating national electricity networks that require
substantial up-front financing, complex operating conditions and
difficult cost-recovery situations.
countries must cope with extremely rapid growth in power demand
which can be twice as high as gross domestic product (GDP)
Unsatisfactory experience with state-owned and operated
electricity networks has led many countries toward a paradigm
shift to private investors, including some foreign direct investment
(FDI), but such reforms confront many issues.
These circumstances present an opportunity for case-study
analysis of “best practices” adaptable to policy choices that continue
to face developing countries and countries with economies in
Electricity sector reform experiences in Chile and New
Zealand provide instructive insights for selecting FDI-related policies that can help to promote sustainable development