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

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

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 estimat...

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Bibliographic Details
Main Authors: Timilsina, Govinda, Deluque Curiel, Ilka, Chattopadhyay, Deb
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
ELECTRICITY
CROSS-BORDER TRADE
ELECTRICITY GRID
REGIONAL ELECTRICITY TRADE
POWER SECTOR PLANNING
Online Access:http://documents.worldbank.org/curated/en/756421623173588257/How-Much-Does-Latin-America-Gain-from-Enhanced-Cross-Border-Electricity-Trade-in-the-Short-Run
http://hdl.handle.net/10986/35729
id okr-10986-35729
recordtype oai_dc
spelling okr-10986-357292021-06-11T05:11:33Z How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade in the Short Run? Timilsina, Govinda Deluque Curiel, Ilka Chattopadhyay, Deb ELECTRICITY CROSS-BORDER TRADE ELECTRICITY GRID REGIONAL ELECTRICITY TRADE POWER SECTOR PLANNING 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. 2021-06-10T14:24:52Z 2021-06-10T14:24:52Z 2021-06 Working Paper http://documents.worldbank.org/curated/en/756421623173588257/How-Much-Does-Latin-America-Gain-from-Enhanced-Cross-Border-Electricity-Trade-in-the-Short-Run http://hdl.handle.net/10986/35729 English Policy Research Working Paper;No. 9692 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank World Bank, Washington, DC Publications & Research Publications & Research :: Policy Research Working Paper Latin America & Caribbean Caribbean Central America Latin America South America
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
topic ELECTRICITY
CROSS-BORDER TRADE
ELECTRICITY GRID
REGIONAL ELECTRICITY TRADE
POWER SECTOR PLANNING
spellingShingle ELECTRICITY
CROSS-BORDER TRADE
ELECTRICITY GRID
REGIONAL ELECTRICITY TRADE
POWER SECTOR PLANNING
Timilsina, Govinda
Deluque Curiel, Ilka
Chattopadhyay, Deb
How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade in the Short Run?
geographic_facet Latin America & Caribbean
Caribbean
Central America
Latin America
South America
relation Policy Research Working Paper;No. 9692
description 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.
format Working Paper
author Timilsina, Govinda
Deluque Curiel, Ilka
Chattopadhyay, Deb
author_facet Timilsina, Govinda
Deluque Curiel, Ilka
Chattopadhyay, Deb
author_sort Timilsina, Govinda
title How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade in the Short Run?
title_short How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade in the Short Run?
title_full How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade in the Short Run?
title_fullStr How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade in the Short Run?
title_full_unstemmed How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade in the Short Run?
title_sort how much does latin america gain from enhanced cross-border electricity trade in the short run?
publisher World Bank, Washington, DC
publishDate 2021
url http://documents.worldbank.org/curated/en/756421623173588257/How-Much-Does-Latin-America-Gain-from-Enhanced-Cross-Border-Electricity-Trade-in-the-Short-Run
http://hdl.handle.net/10986/35729
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