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Has the Promotion of Energy Solutions in Non-Interconnected Zones in Colombia been Effective?: An Analysis of Institutional Structure

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Listed:
  • David Tobón Orozco

    ()

  • Jorge Hernán Flórez Acosta

    ()

  • Gustavo Adolfo Castillo Quintero

    () (Universidad de Antioquia)

Abstract

The purpose of this article is to evidence the current state of non-interconnected zones (ZNI) in Colombia, in terms of the offer of energy, regulation and institutional structure, in order to determine the incentives that seek to implement efficient solutions for these zones. For this purpose, there is on the one hand an analysis of the structure of offer in the non-interconnected zones, and regulation of costs and tariffs applicable; and on the other, incentives given in the law for potential suppliers. Among these incentives, we identify and simulate the feasibility of creating umbrella projects, in the context of clean development mechanisms. The conclusion is that the institutional structure and incentives now in place have not been effective in these areas, and there are no clear or strong strategies to take advantage of their potential to generate electricity with alternative sources and make use of clean development mechanisms.

Suggested Citation

  • David Tobón Orozco & Jorge Hernán Flórez Acosta & Gustavo Adolfo Castillo Quintero, 2009. "Has the Promotion of Energy Solutions in Non-Interconnected Zones in Colombia been Effective?: An Analysis of Institutional Structure," Grupo Microeconomía Aplicada 047, Universidad de Antioquia, Departamento de Economía.
  • Handle: RePEc:lde:grupom:047
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    Keywords

    Non-interconnected zones; regulation; incentives; clean development mechanism;

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L98 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Government Policy

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