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Electric-systems integration in the Andes community: Opportunities and threats

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  • Sauma, Enzo
  • Jerardino, Samuel
  • Barria, Carlos
  • Marambio, Rodrigo
  • Brugman, Alberto
  • Mejía, José

Abstract

This paper identifies some sustainable and technically feasible alternatives for electric exchange through interconnections among the electric systems of Bolivia, Chile, Colombia, Ecuador and Peru. In particular, we assess such interconnections from both technical and economic perspectives, and identify the main technological, commercial and regulatory barriers for their development. The analysis is carried out at the pre-feasibility level from both private and social point of views, based on the assessment of different investment alternatives in the transmission systems among the aforementioned countries. We show that, even when keeping the security and self-sufficiency of the power system of every country (i.e., when not altering the generation expansion plans of the countries), the proposed interconnections have significant economic benefits in the long run. These benefits come from the supply side, the demand side, the system-cost savings and the environmental side. We also analyze the commercial and regulatory issues that must be addressed to accelerate the regional energy integration, and provide some policy recommendations.

Suggested Citation

  • Sauma, Enzo & Jerardino, Samuel & Barria, Carlos & Marambio, Rodrigo & Brugman, Alberto & Mejía, José, 2011. "Electric-systems integration in the Andes community: Opportunities and threats," Energy Policy, Elsevier, vol. 39(2), pages 936-949, February.
    • Handle: RePEc:eee:enepol:v:39:y:2011:i:2:p:936-949
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    References listed on IDEAS

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    1. Enzo Sauma & Shmuel Oren, 2006. "Proactive planning and valuation of transmission investments in restructured electricity markets," Journal of Regulatory Economics, Springer, vol. 30(3), pages 358-387, November.
    2. Enzo Sauma & Shmuel Oren, 2006. "Proactive planning and valuation of transmission investments in restructured electricity markets," Journal of Regulatory Economics, Springer, vol. 30(3), pages 261-290, November.
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    Cited by:

    1. Oak, Neeraj & Lawson, Daniel & Champneys, Alan, 2014. "Performance comparison of renewable incentive schemes using optimal control," Energy, Elsevier, vol. 64(C), pages 44-57.
    2. Javier Bustos-Salvagno & Fernando Fuentes H., 2017. "Electricity Interconnection in Chile: Prices versus Costs," Energies, MDPI, vol. 10(9), pages 1-17, September.
    3. Caballero, F. & Sauma, E. & Yanine, F., 2013. "Business optimal design of a grid-connected hybrid PV (photovoltaic)-wind energy system without energy storage for an Easter Island's block," Energy, Elsevier, vol. 61(C), pages 248-261.
    4. Yanine, Franco F. & Sauma, Enzo E., 2013. "Review of grid-tie micro-generation systems without energy storage: Towards a new approach to sustainable hybrid energy systems linked to energy efficiency," Renewable and Sustainable Energy Reviews, Elsevier, vol. 26(C), pages 60-95.
    5. Vera, Sonia & Sauma, Enzo, 2015. "Does a carbon tax make sense in countries with still a high potential for energy efficiency? Comparison between the reducing-emissions effects of carbon tax and energy efficiency measures in the Chile," Energy, Elsevier, vol. 88(C), pages 478-488.
    6. Yanine, Franco Fernando & Caballero, Federico I. & Sauma, Enzo E. & Córdova, Felisa M., 2014. "Homeostatic control, smart metering and efficient energy supply and consumption criteria: A means to building more sustainable hybrid micro-generation systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 235-258.
    7. Sauma, Enzo, 2012. "The impact of transmission constraints on the emissions leakage under cap-and-trade program," Energy Policy, Elsevier, vol. 51(C), pages 164-171.
    8. Escribano, Gonzalo, 2013. "Ecuador's energy policy mix: Development versus conservation and nationalism with Chinese loans," Energy Policy, Elsevier, vol. 57(C), pages 152-159.
    9. Agostini, Claudio A. & Guzmán, Andrés M. & Nasirov, Shahriyar & Silva, Carlos, 2019. "A surplus based framework for cross-border electricity trade in South America," Energy Policy, Elsevier, vol. 128(C), pages 673-684.
    10. Yanine, Franco Fernando & Caballero, Federico I. & Sauma, Enzo E. & Córdova, Felisa M., 2014. "Building sustainable energy systems: Homeostatic control of grid-connected microgrids, as a means to reconcile power supply and energy demand response management," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1168-1191.
    11. de Moura, Gustavo Nikolaus Pinto & Legey, Luiz Fernando Loureiro & Howells, Mark, 2018. "A Brazilian perspective of power systems integration using OSeMOSYS SAMBA – South America Model Base – and the bargaining power of neighbouring countries: A cooperative games approach," Energy Policy, Elsevier, vol. 115(C), pages 470-485.

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