COMPETITIVE GENERATION AGREEMENTS AND ELECTRICITY RESTRUCTURING IN LATIN AMERICAN SYSTEMS WITH SIGNIFICANT HYDRO GENERATION

摘要

This article examines competitive generation agreements and electrical industry restructuring of Latin American systems with significant hydro generation. It focuses on governing the pool of a mainly hydroelectric system in Chile, on restructuring of the Brazilian electrical market, on electrical sector reform in Peru, and on the Colombian electricity market. Motivation supporting electricity industry deregulation, the main achievements, and remaining challenges are discussed. First, the author reviews the 1997 World Bank report that defines several conditions that a pool must fulfil to contribute to development of a competitive generation market. The main Chilean market, the concepts utilized in the design of the pool, the relevance of the hydroelectric dimension in the Chilean system, the problems faced in the pool over the last few years, and the solutions being implemented are then described. The article then discusses the Brazilian restructuring process. Commercialization risks and possible mitigation mechanisms are reviewed. Next, electric sector reform in Peru is examined. Reform objectives, the new electric sector structure, electric sector agents, electric business, and the electric market are discussed. Also discussed are prices and tariffs, coordination of the electric system, and control and service quality. The article then describes briefly evolution of the Colombian electricity market: motivation supporting the government's decision to deregulate it, market operation and commercial bylaws, main achievements so far, and remaining challenges for strengthening the market.