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The Applied Research Programme on Energy and Economic Growth (EEG) is led by Oxford Policy Management in partnership with the Center for Effective Global Action and the Energy Institute @ Haas at the University of California, Berkeley. The programme is funded by the UK Government, through UK Aid. Over the course of five years, EEG will commission rigorous research exploring the links between energy economic growth, and poverty reduction in low-income countries. This evidence will be specifically geared to meet the needs of decision makers and enable the development of large-scale energy systems that support sustainable, inclusive growth in low income countries in South Asia and Sub-Saharan Africa. The EEG Working Paper Series showcases the 18 State-of-Knowledge papers produced in Phase 1 of the EEG programme. These papers address gaps in knowledge and data in six critical themes related to energy and economic growth: the links between electricity supply and growth, finance and governance aspects, large scale renewables, sustainable urbanization and energy efficiency, the role of extractives, and design of energy systems. Cross-cutting themes of gender, climate change, and data are also addressed in dedicated papers. The views expressed in this paper do not necessarily reflect the UK Government’s official policies. This paper is posted at the eScholarship Repository, University of California. Copyright © 2017 by the author(s). Abstract This paper identifies the key features of successful electricity market designs that are particularly relevant to the experience of low-income countries. Important features include: (1) the match between the short-term market used to dispatch generation units and the physical operation of the electricity network, (2) effective regulatory and market mechanisms to ensure long-term generation resource adequacy, (3) appropriate mechanisms to mitigate local market power, and (4) mechanisms to allow the active involvement of final demand in a short-term market. The paper provides a recommended baseline market design that reflects the experience of the past 25 years with electricity restructuring processes. It then suggests a simplified version of this market design ideally suited to the proposed East and Western Sub-Sahara Africa regional wholesale market that is likely to realise a substantial amount of the economic benefits from forming a regional market with minimal implementation cost and regulatory burden. Recommendations are also provided for modifying the Southern African Power Pool to increase the economic benefits realised from its formation. How this market design supports the cost-effective integration of renewables is discussed and future enhancements are proposed that support the integration of a greater share of intermittent renewables. The paper closes with proposed directions for future research in the area of electricity market design in developing countries.