Regulating Generation Investment in Latin America: Future Challenges

Abstract

A key concern for South American countries is how to procure new generation resources to supply demand, optimising reliability levels and cost impacts on consumers. Historically, this procurement activity has been very challenging due to factors such as uncertainty in load growth rates, limited access to financing, lack of enforcement in the case of delays in construction, deficient legal and regulatory institutional arrangements etc. More recently, the problem complexity has been compounded by environmental concerns about land use, impacts on biodiversity, indigenous populations and greenhouse gas emissions and climate change.