Publication: Regional Power Integration : Structural and Regulatory Challenges
Loading...
Files in English
13,428 downloads
330 downloads
227 downloads
211 downloads
Date
2011-01-01
ISSN
Published
2011-01-01
Author(s)
Editor(s)
Abstract
The Central America Regional Electricity Market (MER) trades electricity and transmission capacity among six Central American countries: Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama. The market differs from other electricity markets worldwide because it has its own regulatory body and system operator. Economic integration of the Central American countries has followed a natural evolution. The continuous increase in the demand for goods and services has been accompanied by political and institutional arrangements leading to the materialization of commercial and trade agreements aimed at benefiting the nationals of all the integrated nations at the lowest possible cost. This is particularly true in the electricity sector, which provides a key development service for the achievement of sustainable growth. In fact, electricity integration through cross-border power trade has been discussed by the Central American countries since the late 1970s. This report analyzes the progress of the Central American integrated electricity market, including the institutional, legal, regulatory and contractual framework of the MER and of each of the six national markets. It then identifies the main barriers that will have to be addressed in order to ensure a successful evolution to full operation of the Central American Electrical Interconnection System (SIEPAC) interconnection system and achieve true market integration.
Link to Data Set
Citation
“World Bank. 2011. Regional Power Integration : Structural and Regulatory Challenges. © World Bank. http://hdl.handle.net/10986/2766 License: CC BY 3.0 IGO.”
Associated URLs
Associated content
Other publications in this report series
Journal
Journal Volume
Journal Issue
Collections
Related items
Showing items related by metadata.
Publication The Potential of Regional Power Sector Integration : Central American Electric Interconnection System Transmission and Trading Case Study(World Bank, Washington, DC, 2010-03)Developing countries are increasingly pursuing and benefitting from regional power system integration (RPSI) as an important strategy to help provide reliable, affordable electricity to their economies and citizens. Increased electricity cooperation and trade between countries can enhance energy security, bring economies-of-scale in investments, facilitate financing, enable greater renewable energy penetration, and allow synergistic sharing of complementary resources. This briefing note draws from the experiences of RPSI schemes around the world to present a set of findings to help address these challenges. It is based on case studies of 12 RPSI projects and how they are dealing with key aspects of RPSI, such as: (i) finding the right level of integration; (ii) optimizing investment on a regional basis; (iii) appropriate regional institutions (iv) technical and regulatory harmonization; (v) power sector reform and integration (vi) the role of donor agencies (vii) reducing emissions through RPSI; and (viii) RPSI and renewable energy.Publication Latin America and the Caribbean Region Energy Sector : Retrospective Review and Challenges(World Bank, Washington, DC, 2009-06)During the 90s, most countries in Latin America and the Caribbean Region (LCR) supported by the World Bank, implemented a market-oriented reform in the energy sector to promote competition, economic regulation and greater private sector participation, as the main instruments to improve the quality, reliability and efficiency of energy services, and improve the government's fiscal position and increase affordable access to modern energy services for the poor. This report comprises an assessment of the energy sector reform in the region: its achievements, difficulties, lessons learnt and current status; an assessment of the future needs of the energy sector investment and financing requirements, constraints, and challenges; and a review of the role of development agencies in supporting the region's energy needs. The study is not a systematic analysis of the reform experience and needs of individual countries, which is not deemed necessary to define an energy strategy for the region, but rather an analysis of the main themes that are common to most countries, with reference to specific cases of individual countries, based on a review of the documentation available on the reform, and on current energy plans. The power sector reform in the region had a substantial positive fiscal impact. During the past 15 years, private investment in electricity in LCR amounted to about US$103 bn, about 60 percent in divestiture of public assets, and 40 percent in green-field projects. Investments in divestiture peaked at about US$21 bn at the time of the privatization of major distribution assets in Brazil, and almost vanished by 2002. Investments in green-field projects have been more stable during the past 10 years.Publication Nicaragua : Energy Sector Policy Note, Executive Summary(Washington, DC, 2012)The increase in oil prices has created a growing economic pressure in Nicaragua. The electric power industry, especially, has generated controversy, because electricity prices have not kept pace with the costs of production. The situation at the beginning of 2006 was clearly unsustainable, and the entry of a new government provided an opportunity to refresh the vision of the sector, and address the problems. The objective of this note is to provide a balanced approach, taking into account both the short-term and long-term prospects of the sector, together with the lessons learned in similar situations. The questions facing the sector relate to its financial situation, the legal framework, the patterns of use of energy in Nicaragua, access and coverage of electric power, and its fiscal impact. Possibly the most important recommendation is to attenuate the disagreements with the government and seek areas of cooperation to improve the conditions of service. This should involve a quantification of the financial losses, and an operational audit to determine the status of implementation of their obligations to agents, investors, and customers.Publication Revisiting Policy Options on the Market Structure in the Power Sector(Washington, DC, 2011-07)The objectives of this study are to develop a taxonomy of the existing power market structures, as shown by the extent of vertical and horizontal unbundling found among restructured power systems, across developing countries; to design an analytical framework for assessing the desirability of unbundling under the variety of economic conditions found among developing countries; and To propose insights for operational guidance on alternative market structures based on relevant criteria, in particular on the initial conditions of a country and its power sector. The study specifically examines whether power system size and country per capita income can be reliable indicators of initial conditions for guiding policy on power market structure. This guidance is needed to address issues such as whether there are solid foundations for recommending vertical unbundling for small power systems in low-income countries, particularly in the absence of short term privatization prospects. The policy recommendations therefore have to be tailored to the specific taxonomy of market structures that characterize the electricity sector in developing countries. The study reports the evidence from econometric analysis and case studies on the (relative) success of achieving the objectives of unbundling. These objectives may be to enhance transparency and governance, attract private sector investment, and/or to create a competitive market and ultimately its impact on performance. The study has an analytical approach to model market structure, together with ownership and regulation, controlling for several variables, as determinants of performance across several indicators of performance, including access, operational and financial performance and environmental sustainability.Publication Managing an Electricity Shortfall : A Guide for Policy Makers(World Bank, 2010-11-01)Economic growth in Central America has increased rapidly over the past 20 years. Currently, the gross domestic product (GDP) per capita for the six Central American countries of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama averages approximately US$3,600. However, masked behind this average figure is a Sub region of 40 million people with a wide variety of income, where more than half of the population lives in poverty. Energy in general and electricity specifically are critical for economic development. Electricity is needed to power the machinery that supports income-generating opportunities. Capital (both domestic and foreign) is attracted to countries that are able to offer an affordable, reliable source of electricity for businesses. Although the individual electricity markets of Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama are not large, together the six countries collectively generated nearly 38 Terawatt-hours (TWh) of power, equivalent to around 70 percent of the annual electricity supply of a medium-sized country in Latin America. The World Bank has undertaken a series of studies to better understand the energy challenges facing these six Central American countries that are to be joined by Sistema de Interconexion Electrica para America Central (SIEPAC) and to identify actions to promote the sound development of the sector. These studies have been prepared by a team of policy experts, engineers and economists as part of an integrated series entitled the Central America programmatic energy studies, with a primary focus on the electricity subsector. The initial phase of this programmatic series includes three modules. The first module is general issues and options; second module is managing an electricity shortfall; and the third module is structure and regulatory challenges. This particular document, the managing an electricity shortfall module, provides a framework for action and a broad menu of options available to policy makers to bridge a supply-demand gap in the short- to medium-term.
Users also downloaded
Showing related downloaded files
Publication Europe and Central Asia Economic Update, Fall 2024: Better Education for Stronger Growth(Washington, DC: World Bank, 2024-10-17)Economic growth in Europe and Central Asia (ECA) is likely to moderate from 3.5 percent in 2023 to 3.3 percent this year. This is significantly weaker than the 4.1 percent average growth in 2000-19. Growth this year is driven by expansionary fiscal policies and strong private consumption. External demand is less favorable because of weak economic expansion in major trading partners, like the European Union. Growth is likely to slow further in 2025, mostly because of the easing of expansion in the Russian Federation and Turkiye. This Europe and Central Asia Economic Update calls for a major overhaul of education systems across the region, particularly higher education, to unleash the talent needed to reinvigorate growth and boost convergence with high-income countries. Universities in the region suffer from poor management, outdated curricula, and inadequate funding and infrastructure. A mismatch between graduates' skills and the skills employers are seeking leads to wasted potential and contributes to the region's brain drain. Reversing the decline in the quality of education will require prioritizing improvements in teacher training, updated curricula, and investment in educational infrastructure. In higher education, reforms are needed to consolidate university systems, integrate them with research centers, and provide reskilling opportunities for adult workers.Publication World Development Report 2006(Washington, DC, 2005)This year’s Word Development Report (WDR), the twenty-eighth, looks at the role of equity in the development process. It defines equity in terms of two basic principles. The first is equal opportunities: that a person’s chances in life should be determined by his or her talents and efforts, rather than by pre-determined circumstances such as race, gender, social or family background. The second principle is the avoidance of extreme deprivation in outcomes, particularly in health, education and consumption levels. This principle thus includes the objective of poverty reduction. The report’s main message is that, in the long run, the pursuit of equity and the pursuit of economic prosperity are complementary. In addition to detailed chapters exploring these and related issues, the Report contains selected data from the World Development Indicators 2005‹an appendix of economic and social data for over 200 countries. This Report offers practical insights for policymakers, executives, scholars, and all those with an interest in economic development.Publication World Development Report 2011(World Bank, 2011)The 2011 World development report looks across disciplines and experiences drawn from around the world to offer some ideas and practical recommendations on how to move beyond conflict and fragility and secure development. The key messages are important for all countries-low, middle, and high income-as well as for regional and global institutions: first, institutional legitimacy is the key to stability. When state institutions do not adequately protect citizens, guard against corruption, or provide access to justice; when markets do not provide job opportunities; or when communities have lost social cohesion-the likelihood of violent conflict increases. Second, investing in citizen security, justice, and jobs is essential to reducing violence. But there are major structural gaps in our collective capabilities to support these areas. Third, confronting this challenge effectively means that institutions need to change. International agencies and partners from other countries must adapt procedures so they can respond with agility and speed, a longer-term perspective, and greater staying power. Fourth, need to adopt a layered approach. Some problems can be addressed at the country level, but others need to be addressed at a regional level, such as developing markets that integrate insecure areas and pooling resources for building capacity Fifth, in adopting these approaches, need to be aware that the global landscape is changing. Regional institutions and middle income countries are playing a larger role. This means should pay more attention to south-south and south-north exchanges, and to the recent transition experiences of middle income countries.Publication Classroom Assessment to Support Foundational Literacy(Washington, DC: World Bank, 2025-03-21)This document focuses primarily on how classroom assessment activities can measure students’ literacy skills as they progress along a learning trajectory towards reading fluently and with comprehension by the end of primary school grades. The document addresses considerations regarding the design and implementation of early grade reading classroom assessment, provides examples of assessment activities from a variety of countries and contexts, and discusses the importance of incorporating classroom assessment practices into teacher training and professional development opportunities for teachers. The structure of the document is as follows. The first section presents definitions and addresses basic questions on classroom assessment. Section 2 covers the intersection between assessment and early grade reading by discussing how learning assessment can measure early grade reading skills following the reading learning trajectory. Section 3 compares some of the most common early grade literacy assessment tools with respect to the early grade reading skills and developmental phases. Section 4 of the document addresses teacher training considerations in developing, scoring, and using early grade reading assessment. Additional issues in assessing reading skills in the classroom and using assessment results to improve teaching and learning are reviewed in section 5. Throughout the document, country cases are presented to demonstrate how assessment activities can be implemented in the classroom in different contexts.Publication Implementation Know-how Briefs to Support Countries to Prioritize, Connect and Scale for a Digital-in-Health Future(Washington, DC: World Bank, 2023-08-18)Technology and data are integral to daily life. As health systems face increasing demands to deliver new, more, better, and seamless services affordable to all people, data and technology are essential. With the potential and perils of innovations like artificial intelligence the future of health care is expected to be technology-embedded and data-linked. This shift involves expanding the focus from digitization of health data to integrating digital and health as one: Digital-in-Health. The World Bank’s report, Digital-in-Health: Unlocking the Value for Everyone, calls for a new digital-in-health approach where digital technology and data are infused into every aspect of health systems management and health service delivery for better health outcomes. The report proposes ten recommendations across three priority areas for governments to invest in: prioritize, connect and scale. The Implementation Know-How Briefs serve as practical guides for countries as they implement the ten recommendations. Every Implementation Know-How Brief provides practical information to start planning and implementing how to implement the recommendations. It also contains key terminologies for those not familiar with a particular topic, provides key questions to ask, and a general orientation as to typical issues in these sectors. Topics covered are: 1.) Digital health assessments; 2.) Telemedicine and virtual health care; 3.) Private sector involvement in digital health; 4.) Interoperability in health sector; 5.) Data governance for health data; 6.) Cybersecurity for health sector; 7.) Digital health records; 8.) Determining value of digital technology in health; 9.) Certification and regulatory sandboxes for digital technologies in health; 10.) Workflow mapping for digital technology (re)design in health systems.