Browsing by Author "Moreno Vieyra, Rodrigo Andrés"

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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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    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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    Distribution Network Rate Making in Latin America: An Evolving Landscape
    (IEEE, 2020) Moreno Vieyra, Rodrigo Andrés; Bezerra, B.; Rudnick van de Wyngard, Hugh; Suazo Martínez, C.; Carvalho, M.; Navarro Espinosa, Alejandro Andrés; Silva Montes, Carlos; Strbac, G.
    Following the trend observed in developed economies, various Latin American governments are committed to reducing greenhouse gas emissions, particularly in the power sector. In countries such as Chile, Peru, Colombia, Brazil, and Mexico, various regulatory policies have been issued to meet renewable-generation integration targets and satisfy the increasing demand from consumers for supply quality. Meanwhile, the integration of distributed generation (DG) in rural and urban areas as well as the increasing need to integrate electric vehicles (EVs) in urban areas are driving important reforms in the distribution sector.
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    From Reliability to Resilience: Planning the Grid Against the Extremes
    (IEEE, 2020) Moreno Vieyra, Rodrigo Andrés; Panteli, M.; Mancarella, P.; Rudnick van de Wyngard, Hugh; Lagos, T.; Navarro Espinosa, Alejandro Andrés; Ordonez, F.; Araneda, J. C.
    Although extreme events, mainly natural disasters and climate change-driven severe weather, are the result of naturally occurring processes, power system planners, regulators, and policy makers do not usually recognize them within network reliability standards. Instead, planners have historically designed the electric power infrastructure accounting for the so-called credible (or "average") outages that usually represent single or (some kind of) simultaneous faults (e.g., faults on double circuits).
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    Risk allocation for efficient and timely transmission investment under markets with high demand growth
    (IEEE, 2009) Moreno Vieyra, Rodrigo Andrés; Rudnick van de Wyngard, Hugh, 1947-
    Under the need for anticipatory efficient investment in transmission, several problems arise at the regulation and incentives level; economies of scale justify carrying out larger initial transmission investments that existing generation and demand may be not willing to pay. This problem is increased with high demand growth where anticipatory investment is crucial for converging to an efficient electric system. Without anticipatory investment, the net number of lines in the long term may be duplicated/triplicated and/or the cost of reinforcing may sharply increase as lines were not initially built to be (easily) upgraded. This cost increase, assumed by generators in the case of additional lines, can ultimately create a barrier to entry for new agents and therefore constrains competition in the market while also impacting end user tariffs. In this paper a formal methodology is proposed to allocate the extra funds needed to build upgradeable additional lines. This is applied to a particular case in the Chilean electricity market.