In the current paradigm of power systems around the world, the energy transition is in a prominent position. In this context, special emphasis has been placed on the integration of renewable energies, which, despite being cost-competitive and in line with the decarbonization objectives, pose greater challenges for the planning and operation of electrical systems. In addition, reliability and resilience have gained increasing prominence in recent years, whether related to stricter security of supply criteria to deal with variable generation, or with climatic events, such as El Niño and La Niña. At this juncture, one of the solutions listed to address the issues of decarbonization and resilience of the supply in an integrated approach is regional integration.
In South America, the most prominent electricity integration initiative is presented by the Andean Community, composed of Bolivia, Colombia, Ecuador and Peru. After a long period of preparation and studies, these countries, in addition to Chile, are seeking to implement the so-called Sistema de Interconexión Eléctrica Andina (SINEA) in the region, which would allow them to take advantage of the energy surpluses and hydrological complementarity between the countries. This initiative took an important step forward in 2023, with the approval of the regulations for the Mercado Andino Eléctrico Regional de Corto Plazo (MAERCP), a short-term energy market which will initially include international electricity transactions between Colombia, Ecuador and Peru. According to preliminary estimates, this first stage of the interconnection would generate an internal rate of return (IRR) for the countries involved of almost 28%. The first stage of the Market is expected to begin in 2025, encompassing transactions between Colombia and Ecuador, with the inclusion of Peru once its interconnection line with Ecuador is completed in 2027.
However, just as important as the existence of a physical interconnection line connecting the different countries is the market model and commercial rules that will regulate this exchange, and the economic gains that can be achieved out of it. According to the literature and the international experience, different market frameworks can be implemented, such as those involving an Exchange Market with coordinated dispatch (example of MER/SIEPAC, in the Central America), those involving an Integrated Energy Market (example of the European Common Market) and those based on a Single Regional Market, with integrated optimization of energy and operating reserve (example of American Markets, such as PJM). In this context, this article seeks to carry out an economic analysis of the implementation of MAERCP/SINEA, comparing how the different market models for the operation of regional integrations would impact on the economic gains expected from such integration. To this end, it is proposed to use a stochastic optimization model under uncertainties on an hourly scale, determining energy prices, exchanges between countries, national generation mix, operating costs, among other relevant results. The model takes into account operating constraints considered by the National Operators, such as operating reserve and transmission network, and allows for the modeling of an energy and reserve exchange scheme between the different countries in the regional market alternative.
Complete tool for submission, evaluation and publication of proceedings for scientific events.
