1 / 18

New Regulatory Scheme to Guarantee Power Reliability Colombia, an investment oportunity

New Regulatory Scheme to Guarantee Power Reliability Colombia, an investment oportunity. Santo Domingo, March 14-15, 2007. Content. An investment oportunity in the Colombian power market. How to participate. Rights and Obligations. Schedule. What is the oportunity?.

zagiri
Download Presentation

New Regulatory Scheme to Guarantee Power Reliability Colombia, an investment oportunity

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. New Regulatory Scheme to Guarantee Power ReliabilityColombia, an investment oportunity Santo Domingo, March 14-15, 2007

  2. Content • An investment oportunity in the Colombian power market • How to participate • Rights and Obligations • Schedule

  3. What is the oportunity? Delivery of energy in scarcity conditions Firm Energy Obligation -FEO Reliability Charge Constant payment ($/GWh) of Firm Energy Commitment period: up to 20 years Building and operation of power assets Firm Energy Auction to allocate FEO

  4. Colombian Power Market data (2006) Generation 36 Transmission 11 Distribution 32 Retailing 67 Wholesale Energy Market Agents Generation Ten years of operation Generators and retailers Centralized transactions 13.280 MW installed (64% hydro 33% thermal) Peak demand: 8762 MW (Growth: 1.42%) Energy demand: 50.815 GWh (Growth: 4.07%) Firm energy (declared by suppliers): 60,6 TWh-year

  5. Spot market Bilateral contracts Ancilliary services Capacity Charge Transactions in the wholesale energy market (2006) $ 537.76 18.44% $ 1 653.61 56.71% $ 175.78 6.03% $ 549.00 18.83% $ 2 916.16 mlls

  6. How to participate? 1. To Inscribe a project of power generation in Colombia • Requirements for the Inscription • Feasibility studies • Financial and management scheme • Approval of Environmental Alternatives Diagnosis • Information about land acquisition options • Request of conection to the transport network • Fuel acquisition scheme • Designs in execution • Request of environmental licence • Information about power generation projects in Colombia • upme.gov.co www.upme.gov.co

  7. 2. To bid in the Firm Energy Auction US$/MWh Aggregated supply D 26.8 = P0 excess supply Starting price Round 1 P1 Round 2 P2 P3 Round 3 P4 Round 4 P5 Round 5 13.4 = P6 Clearing price = CXC 13.00 = P6’ D MWh How to participate? 3. To build and operate the generation asset

  8. Energy to be auctioned and commitment period GWh Energy to be auctioned Demand Commitment up to 20 years Transition Period 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 ........ 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 years

  9. Commitment up to 20 years < 50% growth Take price of auction of year 0 Construction period longer than 3 years GWh years 4 Auction 0 1 2 3 5 6 7

  10. Commitment up to 20 years < 60% growth Take price of auction of year 1 Construction period longer than 3 years GWh years 0 1 2 3 4 5 6 7 6 Auction

  11. Commitment up to 20 years < 80% growth Take price of auction of year 2 Construction period longer than 3 years GWh years 0 1 2 3 4 5 6 7 6 Auction

  12. Construction period longer than 3 years GWh years 0 1 2 3 4 5 6 7 6 Auction

  13. Construction period longer than 3 years GWh Bid for the rest of firm energy Commitment up to 20 years years 0 1 2 3 4 5 6 7 6 Auction

  14. Generator: Obligations and Rights • To have a generation assed to back the FEO • To have the fuel to generate • Deliver the energy when Spot > Scarcity prices as dispatch required it Obligations Rights • To receive the Reliability Charge, even if the FEO is not required, during the commitment period. • FEO protected by Colombian Laws and Regulation Spot price FEO is required

  15. Demand: Obligations and Rights Obligations Rights • To pay the reliability charge during • the commitment period, even if the • FEO is not required. • To buy the energy up to • the Scarcity Price when • Spot Price>Scarcity Price

  16. Secondary Market Demand Response Last resource generator Reconfiguration Auctions Security Rings

  17. Schedule • March 2007 • Information of Combined Cicles and Repower Projects. • April 2007 • Demand forecast • Definition about the date of first Firm Energy Auction.

  18. More information Energy and Gas Regulatory Commission www.creg.gov.co creg@creg.gov.co

More Related