Browsing by Author "Barroso, Luis A."

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    Auctioning adequacy in south america through long-term contracts and options: From classic pay-as-bid to multi-item dynamic auctions
    (IEEE, 2009) Moreno Vieyra, Rodrigo Andrés; Bezerra, Bernardo; Barroso, Luis A.; Mocarquer, S.; Rudnick van de Wyngard, Hugh
    The adequacy problem in electricity market is becoming a very important issue as there is neither theoretical proof nor practical evidence of correct delivering of sufficient and timely generation capacity when it is needed in a real (imperfect) environment. In contrast, classical market design seems to fail when facing high demand growth and/or large hydro share as seen in several Latin American countries such as Chile, Brazil, Colombia and Peru among others. Currently, various mechanisms have arisen across this region with the intention of stimulating energy procurement and new investment. These are mainly based on long-term contract and options obligations, which are allocated through auctions. Auction theory then becomes very important to ensure optimal allocation and efficient prices for both the new generation and the end user. However, difficulties arise when applying pure auction theory because basic hypotheses are not met by most electricity markets. The objective of this paper is to address and discuss the Latin American experience with auction design for long-term contracts focusing on practical design and theory. The different mechanisms and auctions for ensuring supply adequacy are listed along with theoretical justification as part of the potential solution for the adequacy problem that different economies have proposed.
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    Market Mechanisms and Supply Adequacy in Power Sector Reforms in Latin America
    (IEEE, 2006) Hammons, Thomas J.; Barroso, Luis A.; Rudnick van de Wyngard, Hugh
    The process of transformation in government and operations in the power sector leads to interaction between increasing integrated markets and public agencies in charge of policy making, regulation and control. This is examined for Latin America. First, state reform and state policies in Latin America are considered, where present concerns, state-market relationship (the position of regulation, globalization, internationalization), and state market in the energy sector (correction and adjustments) are reviewed. Here, case studies for Argentina and Brazil are briefly reviewed. The paper then examines solutions that are being explored to face supply problems over recent years in the Chilean electricity market, given the unexpected restrictions in natural gas transfers from Argentina. The final part of the paper discusses auctions of contracts and energy call options to ensure supply adequacy in the Brazilian power sector reform. Then, reform being proposed to the electric regulatory framework for wholesale transactions in Peru is reviewed. It represents an effort to solve some problems with the electricity market, particularly the perception that investment in new generation resources is, or may be in the future, inadequate