Correo Electrónico
DNINFOA - SIA
Bibliotecas
Convocatorias
Identidad U.N.
Published
New reliability charge incentives and structure in the Colombian electrical sector
Incentivos y estructura del nuevo cargo por confiabilidad en el sector eléctrico en Colombia
DOI:
https://doi.org/10.15446/ing.investig.v28n3.15128Keywords:
reliability charge, generating system reliability, electrical energy, market instruments, firm energy options (en)cargo por confiabilidad, confiabilidad del sistema de generación, energía eléctrica, instrumentos de mercado, opciones de energía firme (es)
Downloads
Ensuring sector reliability has always been an important issue in electrical sector policy. However, the challenge could be even greater for hydro-dependent systems (as in the Colombian system) operating in the South-American equatorial zone, since climatic shocks such as the “el niño” phenomenon usually have a very strong impact on supply, thereby leading to market disequilibrium. Such systems thus require a very specific regulatory structure to assure generation units as “backup units'' which may generate electrical energy during critical moments. This paper examines the new reliability charge developed by the Colombian Commission for Regulating Energy and Gas (CREG), its characteristics and incentive mechanisms to ensure Colombian electrical system reliability under extreme weather condition. The new system promotes sector reliability during periods of scarcity and provides a clear incentive for new investment in backup generation. However, the instrument’s design could be improved if it included an explicit penalty for those units which do not honor their firm energy commitment. The instrument could thus encourage the non-entry of units which have either low reliability levels or speculative purposes.
Asegurar la confiabilidad en el sector eléctrico ha sido siempre una preocupación central de todo diseño de política del sector. No obstante, para sistemas predominantemente hidráulicos como lo es el colombiano, que operan en la zona ecuatorial americana, el reto de garantizar la confiabilidad puede ser incluso mayor toda vez que fenómenos climatológicos como El Niño pueden producir desajustes importantes del lado de la oferta que dificultan el logro del equilibrio real entre demanda y oferta. De este modo, se requiere una estructura regulatoria muy específica para garantizar la existencia de unidades de generación de respaldo que entren a operar en épocas de hidrología crítica. Este artículo estudia el nuevo cargo de confiabilidad propuesto por la CREG, y en particular, sus características, así como los incentivos en él establecidos para garantizar la confiabilidad del sistema eléctrico en condiciones de hidrología extrema. El diseño del nuevo sistema promueve la confiabilidad del sector en períodos de escasez e incentiva nuevas instalaciones en generación de respaldo, cumpliendo así con su objetivo central. No obstante, el diseño del instrumento podría mejorarse, incluyendo explícitamente una penalidad por incumplimiento, con el propósito de desestimular la entrada al mercado de energía firme de jugadores con bajos niveles de confiabilidad, o de especuladores.
References
Ayala, U., Millán, J., La Sostenibilidad de las Reformas del Sector Eléctrico en Colombia., Cuadernos de Fedesarrollo 9, Ed. Gente Nueva, Editorial Alfaomega Colombiana S.A., 2003.
Black, F., Scholes, M., The Pricing of Options and Corporate Liabilities., The Journal of Political Economy, 1973. DOI: https://doi.org/10.1086/260062
Blanco, C., Soronow, D., (A), Jump Difussion Processes - Energy Price Processes Used for Derivatives Pricing & Risk Management., Commodities Now, September, 2001.
Blanco, C., Soronow, D., Mean Reverting Processes. – Energy Price Processes Used for Derivatives Pricing & Risk Management., Commodities Now, June, 2001.
Cramtom, P., Stoft, S., Colombia Firm Energy Market., Documento final preparado para la C.R.E.G., 2006, pp. 1-9.
CREG., Documento CREG 17 de julio de 2006., Cargo por Confiabilidad, Recuperado de: http://www.creg.gov.co, 2006.
Hull, J. C., Options, Futures and other Derivatives., Ed. Prentice Hall, Fifth Edition, 2002.
Joskow, P., The Difficult Transition to Competitive Electricity Markets in The U.S., 2003. DOI: https://doi.org/10.3386/w10472
Kema Inc., Remuneración de la Confiabilidad. Propuesta para el Sistema Colombiano., Documento preparado para la C.R.E.G., 2005.
Millán, J., Entre el Mercado y el Estado. Tres Décadas de Reformas en el Sector Eléctrico de América Latina., Banco Interamericano de Desarrollo, Departamento de desarrollo sostenible, 2006.
Oren, S., Capacity Payments and Supply Adequacy in Competitive Electricity Markets., VII Symposium of Specialist in Electric Operational and Expansion Planning, May 21 a 26, 2000, pp.1- 8.
Oren, S., Generation Adequacy via Call Options Obligations: Safe Passage to the Promised Land., Tomado de: The Electricity Journal, 2005, pp.28-42. DOI: https://doi.org/10.1016/j.tej.2005.10.003
Resolución CREG 116 de 1996., Recuperado el 27 de agosto de 2006 de http://www.creg.gov.co.
Resolución CREG 122 de 2005., Recuperado de http://www.creg.gov.co.
Resolución CREG 043 de 2006., Recuperado de http://www.creg.gov.co.
Resolución CREG 071 de 2006., Recuperado de http://www.creg.gov.co.
Resolución CREG 086 de 2006., Recuperado de http://www.creg.gov.co.
Rivier, M., Pérez-Arriaga, I. J., Vázquez, C., A Market Approach to Long-Term Security of Supply., IEE Transactions on Power Systems, Vol. 17, No. 2, september, 2001, pp. 349-357. DOI: https://doi.org/10.1109/TPWRS.2002.1007903
Soto, C., Alternativas al Cargo por Capacidad; Teoría, Experiencias Internacionales y Viabilidad para Colombia., Tesis presentada a la Universidad de los Andes de Colombia para optar por el título de Magíster en Regulación, 2006.
Universidad Pontificia de Comillas., Estudio del Cargo por Capacidad en Colombia., Informe Final, Preparado para Acolgen, 2002.
Villarreal, J., Documento Final., Cargo por Capacidad, Asesoría realizada para la UPME, 2005.
Wolak, F., Report on: Proposal for Determining and Assigning the Reliability Charge for the Wholesale Energy Market and Electronic System of Standarized Long-Term Contracts (SEC)., Documento preparado para la CREG, 2005.
How to Cite
APA
ACM
ACS
ABNT
Chicago
Harvard
IEEE
MLA
Turabian
Vancouver
Download Citation
CrossRef Cited-by
1. Gloria Barrera, Adrián Cañón, Juan Camilo Sánchez. (2020). Managing colombian farmers price risk exposure with electrical derivatives market. Heliyon, 6(12), p.e05713. https://doi.org/10.1016/j.heliyon.2020.e05713.
Dimensions
PlumX
Article abstract page views
Downloads
License
Copyright (c) 2008 Julio E. Villareal Navarro, María Jimena Córdoba de la Rosa
This work is licensed under a Creative Commons Attribution 4.0 International License.
The authors or holders of the copyright for each article hereby confer exclusive, limited and free authorization on the Universidad Nacional de Colombia's journal Ingeniería e Investigación concerning the aforementioned article which, once it has been evaluated and approved, will be submitted for publication, in line with the following items:
1. The version which has been corrected according to the evaluators' suggestions will be remitted and it will be made clear whether the aforementioned article is an unedited document regarding which the rights to be authorized are held and total responsibility will be assumed by the authors for the content of the work being submitted to Ingeniería e Investigación, the Universidad Nacional de Colombia and third-parties;
2. The authorization conferred on the journal will come into force from the date on which it is included in the respective volume and issue of Ingeniería e Investigación in the Open Journal Systems and on the journal's main page (https://revistas.unal.edu.co/index.php/ingeinv), as well as in different databases and indices in which the publication is indexed;
3. The authors authorize the Universidad Nacional de Colombia's journal Ingeniería e Investigación to publish the document in whatever required format (printed, digital, electronic or whatsoever known or yet to be discovered form) and authorize Ingeniería e Investigación to include the work in any indices and/or search engines deemed necessary for promoting its diffusion;
4. The authors accept that such authorization is given free of charge and they, therefore, waive any right to receive remuneration from the publication, distribution, public communication and any use whatsoever referred to in the terms of this authorization.
