Learning from Developing Country Power Market Experiences : The Case of Peru

Rudnick, Hugh ; Velasquez, Constantin

World Bank, Washington, DC

关键词: ELECTRICITY;    ENERGY DEMAND;    POWER MARKET;    POWER SECTOR REFORM;    COMPETITION;   

DOI  :  10.1596/1813-9450-8772
RP-ID  :  WPS8772

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

The Peruvian power market wasestablished in 1992, amid serious supply constraints andfinancially distressed power utilities. Since its inception,the market has been adapted by competitive market reformsand adaptations due to government-driven public policyobjectives. This paper analyzes the experience of Peru withpower markets, including market design, implementation, andoutcomes. A cost-based power pool with locational marginalprices was established overnight, with bilateral contractsamong market participants and regulated capacity payments.After an initial period of rapid investment, sluggishcapacity additions and a prolonged drought in 2003-04motivated the successful introduction of competitive supplyauctions in 2006, to ensure that needed capacity additionswere made to meet demand growth. Competitive auctions forrenewable capacity have also been successful, attractinginvestment at falling prices. However, the market has beenadapted by the government, pushing technology-specificauctions to develop a balanced mix of gas and hydro powergeneration, with additional costs passed through to finalcustomers. As a result, supply is less prone to hydrologicalconditions, but it is now subject to gas transportconstraints; prices are depressed at US$9/megawatt hour; andthe reserve margin increased to 81 percent in 2017. Overall,continuous adaptations to the Peruvian power market havedelivered competitive outcomes, with concentration fallingsteadily and security of supply increasing over the pastdecade. However, the mixed approach of competitive forcesand government-driven adaptations for public policyobjectives calls into question the long-term efficiency ofthe market.