lynx   »   [go: up one dir, main page]
IDEAS home Printed from https://ideas.repec.org/p/wbk/wbrwps/9692.html
   My bibliography  Save this paper

How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade in the Short Run ?

Author

Listed:
  • Timilsina,Govinda R.
  • Deluque Curiel,Ilka Fabiana
  • Chattopadhyay,Debabrata
Abstract
Regional or cross-border trade of electricity would be beneficial for all trading partners for multiple reasons. However, cross-border electricity trade in Latin America is limited, and the potential benefits have been forfeited. This study estimates the potential savings on electricity supply costs if 20 Latin American countries allowed unrestricted trade of electricity between the borders without expanding their current electricity generation capacity. Two hypothetical electricity trade scenarios—unconstrained trade of electricity between the countries within the Andean, Central, and Mercosur subregions and full regional trade involving all 20 countries are simulated using a power system model. The study shows that the volume of cross-border electricity trade would increase by 13 and 29 percent under the subregional and regional scenarios, respectively. The region would gain US$1.5 billion annually under the subregional scenario and almost US$2 billion under the full regional scenario. More than half of this gain would be realized by the Andean subregion under both scenarios. These are short-term benefits without expanding the current electricity generation capacities. In the future, when countries add more generation capacity to meet their increasing demand, the potential benefits of electricity trade would be higher. A further study is needed to measure the increased benefits in the long run.

Suggested Citation

  • Timilsina,Govinda R. & Deluque Curiel,Ilka Fabiana & Chattopadhyay,Debabrata, 2021. "How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade in the Short Run ?," Policy Research Working Paper Series 9692, The World Bank.
    • Handle: RePEc:wbk:wbrwps:9692
    as

    Download full text from publisher

    File URL: http://documents.worldbank.org/curated/en/756421623173588257/pdf/How-Much-Does-Latin-America-Gain-from-Enhanced-Cross-Border-Electricity-Trade-in-the-Short-Run.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Gnansounou, Edgard & Bayem, Herman & Bednyagin, Denis & Dong, Jun, 2007. "Strategies for regional integration of electricity supply in West Africa," Energy Policy, Elsevier, vol. 35(8), pages 4142-4153, August.
    2. Pineau, Pierre-Olivier & Hira, Anil & Froschauer, Karl, 2004. "Measuring international electricity integration: a comparative study of the power systems under the Nordic Council, MERCOSUR, and NAFTA," Energy Policy, Elsevier, vol. 32(13), pages 1457-1475, September.
    3. Govinda R Timilsina and Mike Toman, 2018. "Carbon Pricing and Cross-Border Electricity Trading for Climate Change Mitigation in South Asia," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    4. Newbery, David & Strbac, Goran & Viehoff, Ivan, 2016. "The benefits of integrating European electricity markets," Energy Policy, Elsevier, vol. 94(C), pages 253-263.
    5. Yu, Xiaojiang, 2003. "Regional cooperation and energy development in the Greater Mekong Sub-region," Energy Policy, Elsevier, vol. 31(12), pages 1221-1234, September.
    6. Timilsina, Govinda R. & Toman, Mike, 2016. "Potential gains from expanding regional electricity trade in South Asia," Energy Economics, Elsevier, vol. 60(C), pages 6-14.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nepal, Rabindra & Sofe, Ronald & Jamasb, Tooraj & Ramiah, Vikash, 2023. "Independent power producers and deregulation in an island based small electricity system: The case of Papua New Guinea," Energy Policy, Elsevier, vol. 172(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Timilsina,Govinda R. & Toman,Michael A. & Karacsonyi,Jorge G. & de Tena Diego,Luca, 2015. "How much could South Asia benefit from regional electricity cooperation and trade ?," Policy Research Working Paper Series 7341, The World Bank.
    2. Timilsina, Govinda R. & Toman, Mike, 2016. "Potential gains from expanding regional electricity trade in South Asia," Energy Economics, Elsevier, vol. 60(C), pages 6-14.
    3. Aryal, Sushil & Dhakal, Shobhakar, 2022. "Medium-term assessment of cross border trading potential of Nepal's renewable energy using TIMES energy system optimization platform," Energy Policy, Elsevier, vol. 168(C).
    4. Wang, Yubao & Zhen, Junjie, 2024. "Regional electricity cooperation model for cost-effective electricity management with an emphasis on economic efficiency," Energy Policy, Elsevier, vol. 195(C).
    5. Singh, Anoop & Jamasb, Tooraj & Nepal, Rabindra & Toman, Michael, 2018. "Electricity cooperation in South Asia: Barriers to cross-border trade," Energy Policy, Elsevier, vol. 120(C), pages 741-748.
    6. Adeoye, Omotola & Spataru, Catalina, 2020. "Quantifying the integration of renewable energy sources in West Africa's interconnected electricity network," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    7. Valickova, Petra & Elms, Nicholas, 2021. "The costs of providing access to electricity in selected countries in Sub-Saharan Africa and policy implications," Energy Policy, Elsevier, vol. 148(PA).
    8. Timilsina, Govinda R. & Deluque Curiel, Ilka Fabiana, 2023. "Subsidy removal, regional trade and CO2 mitigation in the electricity sector in the Middle East and North Africa region," Energy Policy, Elsevier, vol. 177(C).
    9. Nepal, Rabindra & Paija, Nirash, 2019. "Energy security, electricity, population and economic growth: The case of a developing South Asian resource-rich economy," Energy Policy, Elsevier, vol. 132(C), pages 771-781.
    10. Timilsina,Govinda R. & Deluque Curiel,Ilka Fabiana, 2020. "Power System Implications of Subsidy Removal, Regional Electricity Trade, and Carbon Constraints in MENA Economies," Policy Research Working Paper Series 9297, The World Bank.
    11. Dahlke, Steven & Sterling, John & Meehan, Colin, 2019. "Policy and market drivers for advancing clean energy," OSF Preprints hsbry, Center for Open Science.
    12. Yue Pu & Yunting Li & Yingzi Wang, 2021. "Structure Characteristics and Influencing Factors of Cross-Border Electricity Trade: A Complex Network Perspective," Sustainability, MDPI, vol. 13(11), pages 1-25, May.
    13. Kyriakopoulos, Grigorios L. & Arabatzis, Garyfallos & Tsialis, Panagiotis & Ioannou, Konstantinos, 2018. "Electricity consumption and RES plants in Greece: Typologies of regional units," Renewable Energy, Elsevier, vol. 127(C), pages 134-144.
    14. Newbery, David M. & Greve, Thomas, 2017. "The strategic robustness of oligopoly electricity market models," Energy Economics, Elsevier, vol. 68(C), pages 124-132.
    15. Bowei Guo & Giorgio Castagneto Gissey, 2019. "Cost Pass-through in the British Wholesale Electricity Market: Implications of Brexit and the ETS reform," Working Papers EPRG1937, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    16. Bondarev, Anton & Weigt, Hannes, 2017. "Sensitivity of energy system investments to policy regulation changes: Application of the blue sky catastrophe," Working papers 2017/08, Faculty of Business and Economics - University of Basel.
    17. Kathleen J. Hancock, 2024. "Electric regionalism: Path dependence, development, and the African power pools," Review of Policy Research, Policy Studies Organization, vol. 41(2), pages 347-368, March.
    18. Ochoa, Camila & Dyner, Isaac & Franco, Carlos J., 2013. "Simulating power integration in Latin America to assess challenges, opportunities, and threats," Energy Policy, Elsevier, vol. 61(C), pages 267-273.
    19. Angelica, Gianfreda & Lucia, Parisio & Matteo, Pelagatti, 2017. "The RES-induced Switching Effect Across Fossil Fuels: An Analysis of the Italian Day-Ahead and Balancing Prices and Their Connected Costs," Working Papers 360, University of Milano-Bicocca, Department of Economics, revised 03 Feb 2017.
    20. Stringer, Thomas & Joanis, Marcelin, 2022. "Assessing energy transition costs: Sub-national challenges in Canada," Energy Policy, Elsevier, vol. 164(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wbk:wbrwps:9692. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Roula I. Yazigi (email available below). General contact details of provider: https://edirc.repec.org/data/dvewbus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.
    Лучший частный хостинг