Liberalization of Electricity Markets

Liberalization of electricity markets involves opening up the electricity industry to competition by reducing government control and allowing multiple companies to generate, buy, and sell electricity. This encourages efficiency, innovation, and lower prices, as companies compete to serve consumers. Instead of a single state-controlled provider, consumers can choose their electricity suppliers. The process often includes creating independent market operators to oversee fair trading. Overall, liberalization aims to make energy markets more dynamic, transparent, and responsive to consumer needs, fostering a more resilient and efficient electricity system.