Evaluation Of An Expansion Of The Electricity Transmission System In Mexico
AbstractIn the past, most evaluations of the electric utility investments have been based on the assumptions that the suppliers of electricity would provide the quantity of energy demanded at an acceptable level of reliability. The question addressed in most of the investment appraisals has been: “is this investment the least cost way to supply the electricity demanded?” In real life the situation is usually very different in most countries. Shortages, outages and deterred demand have been the rule, rather than the exception. This study of a major rehabilitation program by Comision Federal de Electricidad (CFE) of Mexico (Mexico Public Electric Utility) presents a practical method of analysis for an investment to rehabilitate an existing electricity transmission system. First, the analysis is done in an integrated fashion where the financial, economic, distributive, and risk aspects of the project are examined together on a consistent basis. Second, the value of each of the components of the supply improvement, i.e. reduction in shortages, outages, transmission losses, is considered separately and then combined in the overall appraisal. Third, the risks imposed on these investments from such macro-economic variables as changes in the real exchange rate and the rate of inflation are modeled, based on real world data, and combined with the risks inherent in the project inputs, such as fuel and investment costs to make an assessment of the overall risks associated with the undertaking of these investments.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by JDI Executive Programs in its series Development Discussion Papers with number 1999-05.
Length: 70 pages
Date of creation: Mar 1999
Date of revision:
Mexico; electricity; rehabilitation; investment; generation; transmission; appraisal;
Find related papers by JEL classification:
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
- L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lester D. Taylor, 1975. "The Demand for Electricity: A Survey," Bell Journal of Economics, The RAND Corporation, vol. 6(1), pages 74-110, Spring.
- Bicak, H.A. & Jenkins, G.P., 1999.
"Costs and Pricing Policies Related to Transporting Water by Tanker from Turkey to North Cyprus,"
689, Harvard - Institute for International Development.
- Hasan Bicak & Glenn Jenkins, 1999. "Costs And Pricing Policies Related To Transporting Water By Tanker From Turkey To North Cyprus," Development Discussion Papers 1999-07, JDI Executive Programs.
- Glenn Jenkins & Henry Lim, 1999. "An Integrated Analysis of a Power Purchase Agreement," Development Discussion Papers 1999-08, JDI Executive Programs.
- Praktiknjo, Aaron J. & Hähnel, Alexander & Erdmann, Georg, 2011. "Assessing energy supply security: Outage costs in private households," Energy Policy, Elsevier, vol. 39(12), pages 7825-7833.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Rafik Majidov).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.