Browsing by Author "Bezerra, Bernardo"

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    A delicate balance in South America
    (2008) Rudnick, Hugh; Barroso, Luiz; Mocarquer, Sebastian; Bezerra, Bernardo
    This article deals with the challenges of balancing the need for hydroelectricity with the impact on the environment. Economic efficiency, energy security, and environmental sustainability are concerns that must be considered in any energy policy in any given country. These key aspects remain challenged currently in South America. High energy consumption growth worldwide rising fossil fuels prices, strong environmentalist pressure toward reducing greenhouse gas effects, and promotion of renewable energy production have been a common challenge in South American energy markets. The development of vast unexploited hydroelectric resources is also at the center of attention, where its renewable character is being confronted with its environmental impact.
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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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    Balance of power
    (2009) Mocarquer, Sebastian; Barroso, Luiz; Rudnick, Hugh; Bezerra, Bernardo; Pereira, Mario
    This paper discusses the challenges in the procurement of electricity. The primary challenge faced by the countries in Latin America is to ensure sufficient capacity and investment to reliably serve their growing economies. The turn of the century brought different challenges to the energy supply in the region and to its market policy emphasis, coupled with a worldwide rocketing up of fuel prices.
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    Expansion Pressure: Energy Challenges in Brazil and Chile
    (2012) Bezerra, Bernardo; Mocarquer, Sebastian; Barroso, Luiz; Rudnick, Hugh
    In Latin America, primary energy demand is projected to grow on average by 1.7% per year and to reach 830 million tons of oil equivalent (mtoe) by 2035, according to the International Energy Agency's 2011 World Energy Outlook. Demand for renewables in the power generation sector in the region will double over that period, reaching nearly 140 mtoe in 2035. Furthermore, the IEA projects that biofuels use in road transport will increase by more than 4% per year, reaching 1 million barrels per day (mb/d) by 2035, representing around 25% of fuel consumption in the sector. The economic giant in the region, Brazil, will increase its primary energy consumption to 420 mtoe in 2035, representing more than half of the regional total.
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    LNG in South America: the markets, the prices and the security of supply
    (IEEE, 2008) Barroso, Luiz Augusto; Rudnick van de Wyngard, Hugh; Mocarquer, Sebastian; Kelman, Rafael; Bezerra, Bernardo
    South America has emerged in recent years as one of the most dynamic regions for natural gas and electricity development. The continent boasts natural gas reserves and high-growth energy markets. The need to diversify away from heavy investments in hydropower and expensive oil is driving many countries to promote the use of natural gas, especially for power generation. On the other hand, challenges are being observed such as competition between hydro- and thermal generation, the breaking of cross-country natural gas agreements, competition between natural gas and other resources for power generation and electric transmission, and others. More recently, LNG started to be considered an option to ensure the adequacy of natural gas supply for power generation. Brazil and Chile are leading the implementation process of regasification facilities. However, the region has also potential to become an exporter of LNG in the medium-term once the potential gas reserves that require deep drilling become commercially available. This paper discusses the introduction of LNG in South America, focusing on the markets, the prices and the security of supply.