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Electricity market design for low-carbon and flexible systems: Room for improvement in Chile

机译：低碳和柔性系统的电力市场设计：智利改进的房间

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摘要

Chile was the first country that privatized all generation, transmission, and distribution services, and introduced competition in the generation segment. Nearly four decades after its creation, many features of the original electricity market design remain unchanged. In this paper, we provide a brief history of the Chilean electricity market and explain its main limitations going forward. Some of these include the use of a cost-based mechanism for spot transactions based on a merit-order curve, low temporal granularity of spot prices, missing forward markets to settle deviations from day-ahead commitments, inefficient pricing of greenhouse gas emissions due to administrative rules, and a capacity mechanism that does not reflect a clear resource adequacy target. Many of these limitations are also present in other electricity markets in Latin America that, when privatized, mirrored many features of the electricity market design in Chile. Failing to address these limitations will provide distorted incentives for the efficient entry and operation of resources that could impart flexibility to the system, increasing the cost of decarbonizing the power sector.
机译：智利是第一个私有化所有一代，传播和分销服务的国家，并引入了代表领域的竞争。创造后近四十年，原有电力市场设计的许多特征保持不变。在本文中，我们提供了智利电力市场的简要历史，并解释了其主要局限性。其中一些包括使用基于成本的现场交易机制，基于优秀秩序，现货价格的低时间粒度，缺少前锋市场，以解决从日前承诺的偏差，低收入的温室气体排放定价行政规则，以及不反映明确资源充足目标的能力机制。许多这些限制也存在于拉丁美洲的其他电力市场中，当私有化时，在智利中反映了电力市场设计的许多特征。未能解决这些限制将提供可能赋予系统灵活性的资源的有效进入和操作的扭曲激励，从而提高了脱碳的代价。

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