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La tarifa de generación en México estimada con el mecanismo de orden de mérito

Author

Listed:
  • Víctor Carreón

    (Division of Economics, CIDE)

  • Evangelina Dardati Cavallero

    (Division of Economics, CIDE)

Abstract

In this paper, we analyze de market for electricity generation in Mexico through the merit order model. Using data for capacity, load factors, and expected demand for 2004; we carry out a simulation to find the lowest generation cost for the Mexican Electricity System. We find that steam plants determine the cost for the lowest consumption months. For the highest consumption months, turbogas plants determine the cost for the peak period. Carbon, dual, geothermic and hydro plants, the ones with the lowest cost, are dispatched 24 hours a day throughout the year. Our results show that the simulated results coincide with the actual demand for 2004. So, we conclude that the Mexican Electricity System is following the merit order model. Finally, we find that during some hours in the highest consumption month, the reserve margin was only 1%, having an unreliable system.

Suggested Citation

  • Víctor Carreón & Evangelina Dardati Cavallero, 2008. "La tarifa de generación en México estimada con el mecanismo de orden de mérito," Working papers DTE 447, CIDE, División de Economía.
    • Handle: RePEc:emc:wpaper:dte447
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    File URL: http://www.economiamexicana.cide.edu/RePEc/emc/pdf/DTE/DTE447.pdf
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    More about this item

    Keywords

    electricity generation; Mexico; merit order model;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L32 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Public Enterprises; Public-Private Enterprises

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