Regional Electricity Markets Interconnections, Phase 1 : Identification of Issues for the Development of Regional Power Markets in South America
The report builds on a study carried out by the Regional Power Integration Commission in South America, which estimated the potential benefits of regional interconnections. Such benefits come from optimized loading of units, exports of hydro energy...
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| Format: | ESMAP Paper |
| Language: | English en_US |
| Published: |
Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2001/12/1735287/regional-electricity-markets-interconnections-phase-1-identification-issues-development-regional-power-markets-south-america http://hdl.handle.net/10986/20281 |
| Summary: | The report builds on a study carried out
by the Regional Power Integration Commission in South
America, which estimated the potential benefits of regional
interconnections. Such benefits come from optimized loading
of units, exports of hydro energy that would not be
dispatched in an isolated system (particularly in years of
high hydrological conditions), global optimization of
reservoirs' regulating capacity, and capacity reserve
sharing. The interconnection benefits were established by
evaluating the difference of the aggregate operational costs
of the systems, when each country operates independently,
and when they are integrated over selected power corridors.
The study concluded that potential cost savings in most of
the cases, exceed the cost of realizing the
interconnections: cost savings (from energy generation only)
would cover the annuity of investments for lines connecting
Argentina and Brazil; Peru, Ecuador, Colombia, and
Venezuela; Brazil and Uruguay; and, Chile and Peru. However,
interconnections require compliance with prerequisites on
contractual, economic, and regulatory matters, not in place
in the region; thus, to facilitate discussions to foster a
higher degree of energy interchange, the study aimed at the
identification, comparison, and critical analysis of
technical, institutional, and regulatory issues restricting
regional interconnections. |
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