Aula de Investigación Luiz Barroso 04/07/2018: "Past, Present and Future of Latin American Electricity Markets"
Besides having 9 world cups of soccer and a humiliating defeat to Germany in a world cup match Latin America has very exciting electricity markets. With financially-constrained and fast-growing markets, the region has tried (almost) everything in terms of electricity regulation to attract new investments, facing all types of challenges and pioneering many ideas that have later spread worldwide. Yet, market interventions, the scaling-up of “new” renewables and the desire for consumers to take a more active role in decision-making have been challenging the existing regulatory frameworks. The objective of this presentation is to provide a high-level overview of the Latin American electricity markets. The presentation will walk through the market design elements in the region and current challenges. As time allows, by means of short case studies the presentation will discuss the most recent developments on capacity adequacy mechanisms (have they worked under stress?), renewable energy auctions (are prices indeed realistic?), integration of renewables to the grid (will hydropower keep on providing flexibility forever?) and the new regulatory challenges and trends that taking place in the region (what are these Latins “inventing” now?).