Electricity Interconnection in Chile: Prices versus Costs

Bustos-Salvagno, Javier; Fuentes, H Fernando

doi:10.3390/en10091438

Cited by 11 publications

(3 citation statements)

References 29 publications

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“…A line linking two disjoint systems will increase competition (even if it does not transport electricity), harming generators and benefiting consumers [17]. The reduction in the energy prices paid by unregulated consumers brought by the interconnection of the two Chilean electricity systems in 2017 illustrates this point [19]. Therefore, the measurement of transmission benefits to users should take into account the generators' market power.…”

Section: An Evaluation Of the Chilean Transmission Normsmentioning

confidence: 99%

Chilean Electric Transmission Regulation: From a Merchant Approach to Central Planning

Fuentes

Serra

2022

Energies

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From the 1980s onwards, many jurisdictions reformed their electricity sectors to create energy markets. To this end, they unbundled transmission from generation, raising the issue of whether and how to regulate transmission. This paper contributes to this literature by analyzing the 40-year Chilean experience. To do so, it describes the initial transmission regulation, the changes introduced, the causes that triggered them, and their results regarding grid access and expansion and their impact on the energy market. The Chilean Electricity Act, issued in 1982, established open access to transmission facilities but left access and expansion conditions unregulated. This situation caused generators’ grid access problems, harming energy market competition. In 2004, lawmakers amended the Act to require the regulator to develop annual expansion plans and regulate transmission remuneration and financing. Following these changes, transmission expanded adequately for about a decade. However, since 2016, renewable energy curtailments have been significant due to congestion on some transmission lines due to construction delays. The increasing empowerment of civil society in the decision-making processes of new investments is relevant in explaining the delays. The main lesson is that citizen consensus-building is crucial for grid expansion.

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Section: An Evaluation Of the Chilean Transmission Normsmentioning

confidence: 99%

Chilean Electric Transmission Regulation: From a Merchant Approach to Central Planning

Fuentes

Serra

2022

Energies

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“…In terms of ownership, the Chilean electricity market was highly concentrated. For example, four companies controlled 95% of the market and 90% of the generation capacity in 2005, decreasing to 80% in 2015 [18]. In terms of electricity demand, figures show that industries and mining consumed 60% of the electricity, while residential and commercial consumed 29% in 2014 [19].…”

Section: The Energy Processmentioning

confidence: 99%

Energy and Water Policies in Chile, Two Different Endings with Implications in the Water-Energy Nexus

Borquéz

Fuster

2021

Energies

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Energy and water have faced important levels of conflicts in the last 20–25 years in Chile. However, the way that they have been politically addressed in the last decade differs. These differences emerge from how these fields have been historically configurated, impacting on how the policy problems and policy options have been framed. Using thematic analysis of 93 interviews and documentary analysis, this article analyzes by contrasting two participatory processes which nourish the formulation of the energy and water policies in Chile in 2014–2015. It seeks to understand the factors that may influence why the development, impact and inclusion of new voices in public policies related to water and energy have been different, and how that can impact the water–energy nexus. Five factors emerge as determinants in this difference: structure of use, number of actors, governance and institutional framework, elite conformation, and legal framework. These factors impacted the policy processes and the scope of the policy outcomes, generating two different results: a long-term energy policy, and a water policy that did not survive the presidential period. Thus, the water–energy nexus is under pressure as a result of the tension between power structures, social responses to environmental issues and decision-making, environmental limitations, and climate change stressors, creating greater vulnerability and conflicts.

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“…The success is largely attributed to, and made possible by, the region's move to liberalise their ESIs. With ESI liberalisation, efficiency is attained through means such as increased competition in the market that leads to improved operations [6], which can result in the elimination of unnecessary overhead supply (reserve margin) in the monopolised markets [7]. This allows for the capital resources to be utilised more effectively.…”

Section: Introductionmentioning

confidence: 99%

The Philippines’ and Singapore’s Journeys towards Liberalised Electricity Supply Industries—Takeaways for Malaysia

2020

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Malaysia is in the process of liberalising its electricity supply industry (ESI) further, with the second reform series announced in September 2018. If everything goes as planned, Malaysia would be the third country in the Association of Southeast Asia Nations (ASEAN) to have a fully liberalised ESI after the Philippines and Singapore. A number of initiatives have been in the pipeline to be executed and a lot more will be planned. At this juncture, it is important for Malaysia to look for the best practices and lessons that can be learnt from the experience of other countries that have successfully liberalised their ESIs. Being in the same region, it is believed that there is a lot that Malaysia can learn from the Philippines and Singapore. This paper therefore presents and deliberates on the chronological development of the countries’ progressive journeys in liberalising their ESIs. The aim is to discern the good practices, the challenges as well as the lessons learnt from these transformations. Analysis is being made and discussed from the following four perspectives; legislative framework, implementation phases, market components and impact on renewable energy penetration. Findings from this study would provide useful insight for Malaysia in determining the course of actions to be taken to reform its ESI. Beyond Malaysia, the findings can also serve as the reference for the other ASEAN countries in moving towards liberalising their ESIs.

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Electricity Interconnection in Chile: Prices versus Costs

Cited by 11 publications

References 29 publications

Chilean Electric Transmission Regulation: From a Merchant Approach to Central Planning

Chilean Electric Transmission Regulation: From a Merchant Approach to Central Planning

Energy and Water Policies in Chile, Two Different Endings with Implications in the Water-Energy Nexus

The Philippines’ and Singapore’s Journeys towards Liberalised Electricity Supply Industries—Takeaways for Malaysia

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