Todos los derechos reservados para XM S.A E.S.P.
2007 APEx ConferenceOctober 14 to October 17
Paris, France
Interaction between adjacent markets in South America
Luis Alejandro Camargo S.Wholesale Market Manager
XM S.A. E.S.P.
2
Contents
• Regional situation
• Regional interconnections
• Andean Community
• Central America Region
• The Southern Common Market (MERCOSUR)
3
Contents
• Regional situation
• Regional interconnections
• Andean Community
• Central America Region
• The Southern Common Market (MERCOSUR)
4Re
sour
ces
15,185(22%)
NordpoolReference
19,528 (22%)
Latin America Situation
South AmericaMesoamerica
4,269(3.4%)
460(1.2%)
InterconnectionMW
(%Demand)
Latin America
4,729(4.3%)
65,625(35%)
ReserveMW
[%Cap. Inst.]19,522(34%)
79,811(42%)
Net
58,263 189,595 189,373 88,921
38,741 123,970 109,562 69,393
Cap. Installed [MW]
Demand [MW]
MER (Central America)ITX Méx - Guat
Market coupling (Col – Ecu)
ITXs Other countriesCommon MarketInterconnection situation
5
Natural Gas Reserves
TFC: Trillion Cubic Feet
152 TCF67%
12 TCF 5%
26 TCF12%
2 TCF1%
4 TCF2%
12 TCF 5%
15 TCF7%
1 TCF1%
6
Complementarity (Central América - Colombia)
JAN0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
FEB MAR ABR MAY JUN JUL AUG SEP OCT NOV DEC
AR
-C
A(G
Wh-
mon
th)
COL
JAN0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
8,000
9,000
10,000
FEB MAR ABR MAY JUN JUL AUG SEP OCT NOV DEC
AR
-C
A(G
Wh-
mon
th)
COL
Day of March 2005
20
40
60
80
100
0
1:00
3:00
5:00
7:00
9:00
11:0
0
13:0
0
15:0
0
17:0
0
19:0
0
21:0
0
23:0
00
1:00
3:00
5:00
7:00
9:00
11:0
0
13:0
0
15:0
0
17:0
0
19:0
0
21:0
0
23:0
0
% DemandMax.
COL PAN
Demand
Hydrology
7
Contents
• Regional situation
• Regional interconnections
• Andean Community
• Central America Region
• The Southern Common Market (MERCOSUR)
8
Interconnection capacities (MW)
336 MW
500 MW 200 MW
100 MW
6,300 MW900 MW
70 MW
2,000 MW
2,000 MW
600 MW
120 MW
80 MW80 MW
80 MW100 MW
200 MW
300 MW
Central AmericaPolicies and processes that facilitate the development of regional infrastructure
300 MW
Andean CommunityPossible participation of Chile, Venezuela and PanamaAgreement CAN 536 (2002)
Mercosur- The Southern Common Market Countries with high electricity demandMany interconnections
Scenery of integration (present)
Scenery of integration (future)
Physical interconnection (future)
Physical interconnection (present)
9
INTERCONNECTION CAPACITY ALLOCATION
E
E
F
F
F
F F F
E
E
EE
EE
E
Bilateral Long term bilateral contracts
Market Coupling
Implicit AuctionsDecoupled Systems
Implicit AuctionsCentralized PX
Market Splitting
1
2
3
E
F
Existing
Future
10
Contents
• Regional situation
• Regional interconnections
• Andean Community
• Central America Region
• The Southern Common Market (MERCOSUR)
11
Andean Region
336 MW
500 MW
100 MW
CAN 536 CAN 536 Act.Act.
Col - EcuadorTIE
Ecuador - Peru(TIE in progress)
Col - VenContracts
National networks
• CAN 536 Act. Dec. 2002
• TIE Colombia – Ecuador March 2003
• TIE Colombia – Ecuador - Peru In progress
12
0
50
100
150
200
Jan
Feb
Mar Apr
May Ju
n
Jul
Aug
Sep Oct
Nov
Dec
GW
h
2004 2005 2006
Electricity Interchanges between Colombia and Ecuador
DateEnergy (GWh) Value (Million of US$)
Col → Ecu Ecu → Col Col → Ecu
2004 1,681 35 135
2005 1,757 16 151
2006 1,608 1 127
500MW
13
Contents
• Regional situation
• Regional interconnections
• Andean Community
• Central America Region
• The Southern Common Market (MERCOSUR)
14
MER Transactions
020406080
100120140160
Jan
Feb
Mar Apr
May Ju
n
Jul
Aug
Sep Oct
Nov
Dec
GW
h
2004 2005 2006
País/GWh
GuatemalaImp Exp
El Salvador Imp Exp
HondurasImp Exp
Nicaragua Imp Exp
Costa Rica Imp Exp
Panamá Imp Exp
Total
2005 322 14 22 300 2 58 8 22 69 8 0 104 54.2 530.0
2006 70 0 8 12 11 7 0.3 42 26 104 83 34 201.0
Transacciones anuales
0 500 1,000 1,500
2006
2005
2004
GW
h -50.4%
-62.1%
Source: Regional Operator -EOR- www.enteoperador.org
National networks
100 MW
80 MW
80 MW
80 MW
120 MW
300 MW(2009)
Annual transactions
15
• Framework Treaty (1995)• Transitory regulations of Operation
and Trading (2002)• Regulator, ISO and PX Regional• MER Regulation (2005)
LagoNicaragua
Panamá
Aguacapa
Nejapa
Cañas
Ticuantepe
Parrita
Aguacaliente
Veladero
CajónRío LindoPanaluya
Ahuachapán
Planta Nicaragua
Guate Norte
Palmar Norte
15 de Sept.
T
Río Claro
SIEPAC Network
Interconnection substation
230 KV line
National substation
300 MW capacity 15 substationsCable OPGW
Country KMSGuatemala 281
Salvador Honduras Nicaragua Costa Rica Panamá Total
230 KV, single circuitCost M US385
285
270 321
490
150 1,797
Operation date April 2009
80 MW
120 MW
80 MW
80 MW
100 MW
Common Electricity Market
www.eprsiepac.com
16
Contents
• Regional situation
• Regional interconnections
• Andean Community
• Central America Region
• The Southern Common Market (MERCOSUR)
17
Interchanges electricity - Mercosur
PS: Regional interchanges included of thefollowing binational generators:
• Itaipú (Brazil – Paraguay)• Yacyretá (Argentina – Paraguay)• Salto Grande (Argentina – Uruguay)
Electricity Importation
0
1020
3040
50
TWh
200320042005 Electricity Exportation
05
101520253035404550
TW
h
200320042005
0.0 20.0 40.0 60.0
2003
2004
2005
Exportations
Importations
Annual Transactions
Source: Olade
200 MW
6,300 MW900 MW
70 MW
2,000 MW
2,000 MW
600 MW
High physical integrationLow market integration
Capacity networks
18
CONCLUSIONS
19
Conclusions
Net benefits for coupled markets
However:
Political interference (subsidies, congestion
surplus) Policy of self-supplying
Price formation asymmetries: (fixed costs
recovery) Arbitration and Conflict Dispute Resolution
New interconnections in progress
CAN 536 Act application
Andean Countries
20
Conclusions
Regional electricity market with common rules Interchange reduction
High fuel prices Technical restrictions
Regional interconnection under construction (2009)
MER – Central American Market
MERCOSUR Bilateral physical contracts …
21 Links and information source
Argentina
Regulator http://www.enre.gov.ar/
Transmission http://www.transener.com.ar/
ISO http://www.cammesa.com.ar/
Power Exchange
Bolivia
Regulator http://www.superele.gov.bo/
Transmissionhttp://www.tde.com.bo/
http://www.isa.com.bo/
ISO http://www.cnb.net/cndc/
Power Exchange
Brazil
Regulator http://www.aneel.gov.br/
Transmissionhttp://www.eletrobras.gov.br/
http://www.eletrosul.gov.br/
ISO http://www.ons.org.br/ons/
Power Exchange http://www.mae.org.br/index.jsp
Colombia
Regulator http://www.creg.gov.co/
Transmission
http://www.isa.com.co/
http://www.transelca.com.co/
ISO http://www.xm.com.co/
Power Exchange
Ecuador
Regulator http://www.conelec.gov.ec/
Transmission http://www.transelectric.com.ec/
ISO http://www.cenace.org.ec/
Chile
Regulator http://www.cne.cl/
Transmissionhttp://www.transelec.cl/
http://www.cgetransmision.cl/
ISOPower Exchange
http://www.cdec-sic.cl/http://www.cdec-sing.cl/
Peru
Regulator http://www.osinerg.gob.pe/
Transmission
http://www.isa.com.pe/
http://www.rep.com.pe/
http://www.redesur.com.pe/
ISOhttp://www.coes.org.pe/
Paraguay
Regulator
http://www.ande.gov.py/Transmission
ISO
Uruguay
Regulator http://www.ursea.gub.uy/
Transmission http://www.ute.com.uy/
ISO http://www.dncu.gub.uy/
Power Exchange http://www.adme.com.uy/
El Salvador
Regulator http://www.siget.gob.sv/
ISOPower Exchange
http://www.ut.com.sv/
Guatemala Regulator http://www.cnee.gob.gt/
Honduras
Regulator http://www.cne.gob.hn/
TransmissionISO
http://www.enee.hn/
Nicaragua
Regulator http://www.ine.gob.ni/
Transmission http://www.entresa.com.ni/
ISO http://www.cndc.org.ni/
Panama
Regulator http://www.enteregulador.gob.pa/
Transmission http://www.etesa.com.pa/
ISO http://www.cnd.com.pa/index.htm
ISOPower Exchange
http://www.amm.org.gt/
Todos los derechos reservados para XM S.A E.S.P.