Browsing by Author "Mocarquer, S."

Now showing 1 - 10 of 10
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    A natural fit : Electricity-gas integration challenges in South America
    (2014) Rudnick Van de Wyngard, Henry; Barroso, L.; Cunha, G.; Mocarquer, S.
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    Auction approaches of long-term contracts to ensure generation investment in electricity markets: Lessons from the Brazilian and Chilean experiences
    (ELSEVIER SCI LTD, 2010) Moreno, R.; Barroso, L. A.; Rudnick, H.; Mocarquer, S.; Bezerra, B.
    The implementation of auctions of long-term electricity contracts is arising as an alternative to ensure generation investment and therefore achieve a reliable electricity supply. The aim is to reconcile generation adequacy with efficient energy purchase, correct risk allocation among investors and consumers, and the politico-economic environment of the country. In this paper, a generic proposal for a long-term electricity contracts approach is made, including practical design concepts for implementation. This proposal is empirically derived from the auctions implemented in Brazil and Chile during the last 6 years. The study is focused on practices and lessons which are especially useful for regulators and policy makers that want to facilitate the financing of new desirable power plants in risky environments and also efficiently allocate supply contracts among investors at competitive prices. Although this mechanism is generally seen as a significant improvement in market regulation, there are questions and concerns on auction performance that require careful design and which are identified in this paper. In addition, the experiences and proposal described can serve to derive further mechanisms in order to promote the entrance of particular generation technologies, e.g. renewables, in the developed world and therefore achieve a clean electricity supply. (C) 2010 Elsevier Ltd. All rights reserved.
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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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    Benchmark regulation and efficiency of electricity distribution: strengths and weaknesses
    (IEEE, 2007) Rudnick van de Wyngard, Hugh, 1947-; Mocarquer, S.
    A growing challenge in the restructuring of the electrical sector, where competition is introduced in the generation area, is to achieve equivalent efficiencies in the electrical distribution service, an activity that develops in a monopolistic environment. Chile has had an experience of over 20 years of applying benchmark price regulation to its distribution companies. This summary discusses the strengths and weaknesses of the Chilean benchmark scheme .
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    Challenges on integrating renewables into the Chilean grid
    (IEEE, 2010) Araneda, J. C.; Mocarquer, S.; Moreno Vieyra, Rodrigo Andrés; Rudnick van de Wyngard, Hugh
    The Chilean Electricity Law introduced an obligation to power traders, from 2010 to 2014, to certify that at least 5% of the electricity traded comes from renewable sources. From 2015 onwards, the obligation will increase by 0.5% annually until 10% in 2024. Several challenges need to be addressed to permit efficient access for renewable energies. One of these is the natural barrier to entry for new generators, originated in the radial characteristic of the transmission systems. In the past these systems have essentially developed, and adapted economically, to conventional generation and demand. International experience shows that grid operation and expansion needs to be “smarter†for allowing renewable power connection. In Chile, significant challenges have arisen in grid planning and pricing which this paper attempts to address. While new wind farms can be installed in 1.5 years, transmission infrastructure requires 3 to 6 years to be completed. In this framework, extensive construction times of new grid developments, considering community and environmental approval, require a long-term vision, which, in turn, provides regulatory signals in order to minimize bottlenecks for the integration of new generation, particularly renewable. On the pricing side, wind farms push large transmission expansions, but given regulatory arrangements, participate with a small part on transmission toll payments because of the low plant factors of wind generation. In addition, transmission planning under uncertainty, by taking account of different scenarios, and the concept of anticipatory investment becomes critical.
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    Disaster Management
    (IEEE, 2011) Rudnick van de Wyngard, Hugh; Mocarquer, S.; Andrade, Eduardo; Vuchetich, Esteban; Miquel Duran, Pedro Enrique
    In this paper its is discussed that the transmission and distribution facilities are more vulnerable to major earthquakes than the generation facilities. The design of the generation facilities usually adopts a higher design and building standards.
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    Hydro or coal: Energy and the environment in Chile
    (IEEE, 2008) Rudnick van de Wyngard, Hugh; Mocarquer, S.
    Coal and hydro will be the main sources of electric energy in Chile for the near future, given that natural gas from neighbouring Argentina is not longer available and LNG price projections leave it only as a backup fuel. The country has limited energy resources, importing more than 73% of its energy. Hydroelectric untapped resources are significant, but they are mostly located in the extreme south of the country, in unpopulated areas of great unspoiled beauty. Non governmental organizations both within the country and from the US are strongly opposing the use of these resources. Renewables, which are only at an early stage, are argued as an alternative, but do not represent a solution with rates of growth of electricity demand over 6% a year. This summary discusses the issues being faced and the environmental dilemma faced by the country, where both coal and hydro produce some kind of impact. The role of the State and the private sector in determining the countrypsilas energy matrix arises as another central discussion.
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    The difficulties of open access and pricing in distribution networks
    (IEEE, 2007) Rudnick Van de Wyngard, Hugh; Mocarquer, S.; Mohr Rioseco, Ricardo Alberto
    Chile has had a successful experience of over 20 years of applying benchmark price regulation to its distribution companies. The same can not be said on implementing open access to the distribution networks, given the vertical integration of the wire business and the retail activity. This summary discusses barriers of entries to third parties that want to compete with the distribution companies and explains the pricing access scheme that has been formulated.
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    The insertion of renewables into the Chilean electricity market
    (IEEE, 2010) Mocarquer, S.; Rudnick van de Wyngard, Hugh
    The Chilean electricity regulation introduced in 2008 an obligation to contract 10% of renewable energy, excluding large hydro, in the wholesale market. This paper assesses the impact of that obligation into the market, revises renewable projects that have been submitted for environmental assessment, the actual plants being built and the requirements they are imposing onto the transmission system as well as system operation. Challenges to investors introducing renewables are discussed.
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    Transmission planning-from a market approach to a centralized one-the Chilean experience
    (IEEE, 2009) H. Rudnick; J. C. Araneda; Mocarquer, S.
    Electricity transmission planning does not have a common solution worldwide, with most countries trusting on alternatives adapted to the local energy markets' regulatory regime. The fast-growing conditions of the Chilean energy market, driven by private agents, meant the need to introduce changes to the original 1982 regulatory framework, being transmission pricing and investment among the main issues assessed in 2004. The original framework based on free market bilateral negotiations among the transmission owner and the interested parties had its main conflicts associated to the lack of transmission investment signals and lack of a common method to value and allocate the use of the existent transmission assets, that provoked a free rider actuation by some agents. For that reason transmission expansion and pricing was modified into a co-operative regulated scheme with participation of every agent participating in the energy market. As a result of the regulatory modifications, investments in the trunk transmission system have reactivated but some improvements to the process must be done.