Barroso, L, Rudnick, H., Moreno, R., Bezerra, B., Ensuring Resource Adequacy with Auctions of Options and Forward Contracts, paper 07GM1368, IEEE Power Engineering Society 2007 General Meeting, Tampa, Florida, June 2007 (2007)

Ensuring Resource Adequacy with Auctions of Options and Forward Contracts

Tipo de publicación : Conferencia No A* ni A

Abstract

The implementation of auctions of long-term firm
energy call options and forward contracts as part of the
instruments adopted in emerging countries to ensure resource adequacy is discussed. These mechanisms are being implemented in Latin American nations (Brazil, Chile, Peru, El Salvador & Panama) and fast-growing economies in Europe such as Turkey. Brazil has led this process and in overall has auctioned about 25,000 average MW of contracts, involving about 65 billion USD in financial transactions, while Chile has carried out its first auction in 2006, involving about 1,300 average MW (30% of energy sales of the main interconnected Chilean system expected for 2010). Overall, this mechanism is proving to be adequate to attract investments and ensure resource adequacy.