Integrated natural gas-electricity resource adequacy planning in Latin America

Abstract

Latin America has recently emerged as one of the most dynamic regions for natural gas and electricity development. The conti- nent boasts abundant natural gas reserves and high-growth energy markets. The need to diversify away from heavy investments in hydropower and expensive oil is driving many countries to promote the use of natural gas, especially for power generation. With this come challenges such as competition between hydro- and thermal generation, the breaking of cross-country natural gas agreements, competition between natural gas and other resources for power generation and electric transmission, among others. This paper addresses natural gas–electricity resource adequacy planning for four countries in Latin America, Brazil, Chile, Mexico, and Colombia, as well as the perspectives for creation of an integrated market in the Southern Cone of Latin America.