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The changing role of the State in the expansion of electricity supply in Latin America

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  • Batlle, Carlos
  • Barroso, Luiz A.
  • Pérez-Arriaga, Ignacio J.

Abstract

Throughout the history of the electricity industry, regulatory reform has been driven by the pursuit of tools able to create conditions that would favour infrastructure investment and, generally, to surmount the obstacles that hinder system expansion. This article addresses the interaction between regulatory schemes and electric power generation investment, with a review of the changing role of the State in the expansion of electricity supply in Latin America. It contains a critical assessment of changes in the regulatory framework since the outset of electric power market reform, describing the successive approaches to regulation adopted in the last three decades. The aim of this analysis is to help identify the key factors underlying the evolution of energy policies and to contribute to the formulation of a prospective view of the direction this evolution may reasonably be expected to take.

Suggested Citation

  • Batlle, Carlos & Barroso, Luiz A. & Pérez-Arriaga, Ignacio J., 2010. "The changing role of the State in the expansion of electricity supply in Latin America," Energy Policy, Elsevier, vol. 38(11), pages 7152-7160, November.
    • Handle: RePEc:eee:enepol:v:38:y:2010:i:11:p:7152-7160
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    References listed on IDEAS

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    2. Chaves, J. P. & Cossent, R. & Gómez San Román, T. & Linares, P. & Rivier, M., 2023. "An assessment of the European electricity market reform options and a pragmatic proposal," Cambridge Working Papers in Economics 2325, Faculty of Economics, University of Cambridge.
    3. Rodilla, P. & Batlle, C., 2012. "Security of electricity supply at the generation level: Problem analysis," Energy Policy, Elsevier, vol. 40(C), pages 177-185.
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    5. Mastropietro, Paolo & Herrero, Ignacio & Rodilla, Pablo & Batlle, Carlos, 2016. "A model-based analysis on the impact of explicit penalty schemes in capacity mechanisms," Applied Energy, Elsevier, vol. 168(C), pages 406-417.
    6. Mastropietro, Paolo & Rodilla, Pablo & Rangel, Lina Escobar & Batlle, Carlos, 2020. "Reforming the colombian electricity market for an efficient integration of renewables: A proposal," Energy Policy, Elsevier, vol. 139(C).
    7. Bradshaw, Amanda, 2017. "Regulatory change and innovation in Latin America: The case of renewable energy in Brazil," Utilities Policy, Elsevier, vol. 49(C), pages 156-164.
    8. Roques, Fabien & Finon, Dominique, 2017. "Adapting electricity markets to decarbonisation and security of supply objectives: Toward a hybrid regime?," Energy Policy, Elsevier, vol. 105(C), pages 584-596.
    9. Zapata, Sebastian & Castaneda, Monica & Franco, Carlos Jaime & Dyner, Isaac, 2019. "Clean and secure power supply: A system dynamics based appraisal," Energy Policy, Elsevier, vol. 131(C), pages 9-21.
    10. Bradshaw, Amanda & de Martino Jannuzzi, Gilberto, 2019. "Governing energy transitions and regional economic development: Evidence from three Brazilian states," Energy Policy, Elsevier, vol. 126(C), pages 1-11.
    11. Rabindra Nepal & Tooraj Jamasb & Anupama Sen & Lawrence Cram, 2017. "Small Systems, Big Targets: Power Sector Reforms and Renewable Energy Development in Small Electricity Systems," Working Papers EPRG 1709, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    12. León-Vielma, J.E. & Ramos-Real, F.J. & Hernández Hernández, J.F., 2022. "The collapse of Venezuela's electricity sector from an energy governance perspective," Energy Policy, Elsevier, vol. 167(C).
    13. Bastos, João Pedro & Cunha, Gabriel & Barroso, Luiz Augusto & Aquino, Thereza, 2018. "Reliability mechanism design: An economic approach to enhance adequate remuneration and enable efficient expansion," Energy, Elsevier, vol. 158(C), pages 1150-1159.
    14. Nepal, Rabindra & Jamasb, Tooraj & Sen, Anupama, 2018. "Small systems, big targets: Power sector reforms and renewable energy in small systems," Energy Policy, Elsevier, vol. 116(C), pages 19-29.
    15. Pietrosemoli, Licia & Rodríguez Monroy, Carlos, 2013. "The impact of sustainable construction and knowledge management on sustainability goals. A review of the Venezuelan renewable energy sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 683-691.
    16. Ramírez-Camperos, Adriana María & Rodríguez-Padilla, Víctor & Guido-Aldana, Pedro Antonio, 2013. "The Mexican electricity sector: Policy analysis and reform (1992–2009)," Energy Policy, Elsevier, vol. 62(C), pages 1092-1103.
    17. Mastropietro, Paolo & Batlle, Carlos & Barroso, Luiz A. & Rodilla, Pablo, 2014. "Electricity auctions in South America: Towards convergence of system adequacy and RES-E support," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 375-385.
    18. Luiz T. A. Maurer & Luiz A. Barroso, 2011. "Electricity Auctions : An Overview of Efficient Practices," World Bank Publications - Books, The World Bank Group, number 2346, December.
    19. Viana, Alexandre G. & Ramos, Dorel Soares, 2018. "Outcomes from the first large-scale solar PV auction in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 219-228.
    20. Marina Yesica Recalde, 2016. "The different paths for renewable energies in Latin American Countries: the relevance of the enabling frameworks and the design of instruments," Wiley Interdisciplinary Reviews: Energy and Environment, Wiley Blackwell, vol. 5(3), pages 305-326, May.
    21. Mastropietro, Paolo & Barroso, Luiz A. & Batlle, Carlos, 2015. "Power transmission regulation in a liberalised context: An analysis of innovative solutions in South American markets," Utilities Policy, Elsevier, vol. 33(C), pages 1-9.
    22. Batlle, C. & Rodilla, P., 2010. "A critical assessment of the different approaches aimed to secure electricity generation supply," Energy Policy, Elsevier, vol. 38(11), pages 7169-7179, November.
    23. Mastropietro, Paolo & Rodilla, Pablo & Batlle, Carlos, 2019. "De-rating of wind and solar resources in capacity mechanisms: A review of international experiences," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 253-262.
    24. Pedro J. Zarco-Periñán & José L. Martínez-Ramos & Fco. Javier Zarco-Soto, 2021. "On the Remuneration to Electrical Utilities and Budgetary Allocation for Substation Maintenance Management," Sustainability, MDPI, vol. 13(18), pages 1-15, September.
    25. Danielle Gent & Julia Tomei, 2017. "Electricity in Central America: Paradigms, reforms and the energy trilemma," Progress in Development Studies, , vol. 17(2), pages 116-130, April.

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