Browsing by Author "Bezerra, Bernardo"

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    Auctioning adequacy in south america through long-term contracts and options: From classic pay-as-bid to multi-item dynamic auctions
    (IEEE, 2009) Moreno Vieyra, Rodrigo Andrés; Bezerra, Bernardo; Barroso, Luis A.; Mocarquer, S.; Rudnick van de Wyngard, Hugh
    The adequacy problem in electricity market is becoming a very important issue as there is neither theoretical proof nor practical evidence of correct delivering of sufficient and timely generation capacity when it is needed in a real (imperfect) environment. In contrast, classical market design seems to fail when facing high demand growth and/or large hydro share as seen in several Latin American countries such as Chile, Brazil, Colombia and Peru among others. Currently, various mechanisms have arisen across this region with the intention of stimulating energy procurement and new investment. These are mainly based on long-term contract and options obligations, which are allocated through auctions. Auction theory then becomes very important to ensure optimal allocation and efficient prices for both the new generation and the end user. However, difficulties arise when applying pure auction theory because basic hypotheses are not met by most electricity markets. The objective of this paper is to address and discuss the Latin American experience with auction design for long-term contracts focusing on practical design and theory. The different mechanisms and auctions for ensuring supply adequacy are listed along with theoretical justification as part of the potential solution for the adequacy problem that different economies have proposed.
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    Balance of power
    (2009) Mocarquer, Sebastian; Barroso, Luiz; Rudnick, Hugh; Bezerra, Bernardo; Pereira, Mario
    This paper discusses the challenges in the procurement of electricity. The primary challenge faced by the countries in Latin America is to ensure sufficient capacity and investment to reliably serve their growing economies. The turn of the century brought different challenges to the energy supply in the region and to its market policy emphasis, coupled with a worldwide rocketing up of fuel prices.
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    Expansion Pressure: Energy Challenges in Brazil and Chile
    (2012) Bezerra, Bernardo; Mocarquer, Sebastian; Barroso, Luiz; Rudnick, Hugh
    In Latin America, primary energy demand is projected to grow on average by 1.7% per year and to reach 830 million tons of oil equivalent (mtoe) by 2035, according to the International Energy Agency's 2011 World Energy Outlook. Demand for renewables in the power generation sector in the region will double over that period, reaching nearly 140 mtoe in 2035. Furthermore, the IEA projects that biofuels use in road transport will increase by more than 4% per year, reaching 1 million barrels per day (mb/d) by 2035, representing around 25% of fuel consumption in the sector. The economic giant in the region, Brazil, will increase its primary energy consumption to 420 mtoe in 2035, representing more than half of the regional total.
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    Zero-Marginal-Cost Electricity Market Designs: Lessons Learned From Hydro Systems in Latin America Might Be Applicable for Decarbonization
    (2021) Barroso, Luiz; Munoz, Francisco D.; Bezerra, Bernardo; Rudnick, Hugh; Cunha, Gabriel
    Large reductions in the cost of renewable energy technologies, particularly wind and solar, as well as various instruments used to achieve decarbonization targets (e.g., renewable mandates, renewable auctions, subsidies, and carbon pricing mechanisms) are driving the rapid growth of investments in these generation technologies worldwide.