Chapter 12 The Single Buyer Model as a Challenge and an Opportunity in Relation to Sustainable Energy Democracy in Transition Economies
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Abstract
The ownership and operation of renewable projects by operators that are not state enterprises in transition economies demonstrates how a system of electricity regulation can be developed to serve as a step towards sustainable energy democracy. This approach permits small private producers or prosumers to produce, consume, and potentially sell self-generated electricity, thus reducing the centralization of the electricity industry. However, this chapter argues that a single buyer model, which is widespread in transition economies and where state enterprises own electricity networks are vested with discretionary powers to purchase electricity from small private producers or prosumers, poses a considerable challenge to the sustainable energy democracy concept. The grassroots community-based plants scheme in Thailand, which is implemented under a single buyer model and the Energy Industry Act B.E. 2550 (2007), is used as an example to demonstrate the associated challenges.