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

Rudnick, Hugh ; Velasquez, Constantin

World Bank, Washington, DC

关键词: ELECTRICITY;    POWER SECTOR;    ENERGY;    EMERGING MARKET ECONOMIES;    TRANSMISSION AND DISTRIBUTION NETWORK;   

DOI  :  10.1596/1813-9450-8771
RP-ID  :  WPS8771

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 Colombian power market wasestablished in 1995, driven primarily by concerns about thereliability of supply in the largely hydro-based domesticpower system. The power sector reform was expected to helpavoid blackouts by attracting private investment andincreasing the efficiency of existing capacity. However, twodecades after its inception, the market has not beensuccessful in providing reliable supply along competitiveoutcomes. This paper analyzes the experience of Colombiawith power markets, including market design, implementation,and outcomes. A single-node, bid-based market wasestablished overnight, with bilateral contracts among marketparticipants (mostly short-to-medium term). The originalregulated capacity payment was replaced in 2004 by areliability market intended to ensure supply during tighthydrological conditions (mainly due to El Nino phenomena).However, the Colombian power sector is currently showingsigns of structural weakness: the reliability market hasshown dysfunctionalities, the government has intervened themarket during critical situations, and concerns persistregarding market power exercise. The experience of Colombiais important for other developing countries, since ithighlights the challenges of designing and implementing apower market that successfully provides reliability,competitive outcomes, and sustainability. Although key localhydrological conditions were considered in the design ofColombia's capacity market, the market had difficultiesdelivering intended outcomes due to design and institutionalissues, particularly the lack of a comprehensive approach togas supply and transport.