Price convergence in the Central American regional electricity market

After 7 years since the formalization of the regional electricity market (MER, according to the Spanish acronym) in Central America, operating in a parallel fashion with domestic markets, we study the evolution of spot prices to understand whether the MER allowed for price convergence in the transac...

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Detalles Bibliográficos
Autores principales: Cont, Walter Alberto, Barril, Diego, Carbó, Agustín
Formato: Objeto de conferencia
Lenguaje:Inglés
Publicado: 2021
Materias:
Ciencias Económicas
Electricity prices
price convergence
SIEPAC
Regional Electricity Market
Acceso en línea:http://sedici.unlp.edu.ar/handle/10915/170239
Aporte de:
SEDICI (UNLP) de Universidad Nacional de La Plata
id I19-R120-10915-170239
record_format dspace
spelling I19-R120-10915-1702392024-09-18T04:10:35Z http://sedici.unlp.edu.ar/handle/10915/170239 Price convergence in the Central American regional electricity market Cont, Walter Alberto Barril, Diego Carbó, Agustín 2021-11 2021 2024-09-17T12:44:20Z en Ciencias Económicas Electricity prices price convergence SIEPAC Regional Electricity Market After 7 years since the formalization of the regional electricity market (MER, according to the Spanish acronym) in Central America, operating in a parallel fashion with domestic markets, we study the evolution of spot prices to understand whether the MER allowed for price convergence in the transactions that took place among countries. We use a test proposed by Phillips and Sul (Econometrica, 2007) to run the convergence test and find that long term forces are in effect, interrupted temporarily in mid-2016 after the introduction of a hydroelectric plant (Reventazon) in Costa Rica. This convergence result is accompanied by indirect evidence of a reduction in the level of spot prices during the period (after having considered the cost of fuels or natural gas). Luego de 7 años desde la formalización del Mercado Eléctrico Regional (MER) en Centroamérica, este paper estudia la evolución de los precios spot para entender si se produjo una convergencia entre los países que forman parte del MER. Utilizando una prueba propuesta por Phillips y Sul (Econometrica, 2007) para ejecutar el test de convergencia, se puede concluir que las fuerzas de largo plazo hacia un precio único han operado, habiendo sufrido una interrupción temporal a mediados de 2016 después de la introducción de una planta hidroeléctrica (Reventazón) en Costa Rica. Este resultado de convergencia va acompañado de evidencia indirecta de una reducción en el nivel de precios spot durante el período (después de haber considerado el costo de los combustibles o del gas natural). Facultad de Ciencias Económicas Objeto de conferencia Objeto de conferencia http://creativecommons.org/licenses/by-nc-sa/4.0/ Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International (CC BY-NC-SA 4.0) application/pdf
institution Universidad Nacional de La Plata
institution_str I-19
repository_str R-120
collection SEDICI (UNLP)
language Inglés
topic Ciencias Económicas
Electricity prices
price convergence
SIEPAC
Regional Electricity Market
spellingShingle Ciencias Económicas
Electricity prices
price convergence
SIEPAC
Regional Electricity Market
Cont, Walter Alberto
Barril, Diego
Carbó, Agustín
Price convergence in the Central American regional electricity market
topic_facet Ciencias Económicas
Electricity prices
price convergence
SIEPAC
Regional Electricity Market
description After 7 years since the formalization of the regional electricity market (MER, according to the Spanish acronym) in Central America, operating in a parallel fashion with domestic markets, we study the evolution of spot prices to understand whether the MER allowed for price convergence in the transactions that took place among countries. We use a test proposed by Phillips and Sul (Econometrica, 2007) to run the convergence test and find that long term forces are in effect, interrupted temporarily in mid-2016 after the introduction of a hydroelectric plant (Reventazon) in Costa Rica. This convergence result is accompanied by indirect evidence of a reduction in the level of spot prices during the period (after having considered the cost of fuels or natural gas).
format Objeto de conferencia
Objeto de conferencia
author Cont, Walter Alberto
Barril, Diego
Carbó, Agustín
author_facet Cont, Walter Alberto
Barril, Diego
Carbó, Agustín
author_sort Cont, Walter Alberto
title Price convergence in the Central American regional electricity market
title_short Price convergence in the Central American regional electricity market
title_full Price convergence in the Central American regional electricity market
title_fullStr Price convergence in the Central American regional electricity market
title_full_unstemmed Price convergence in the Central American regional electricity market
title_sort price convergence in the central american regional electricity market
publishDate 2021
url http://sedici.unlp.edu.ar/handle/10915/170239
work_keys_str_mv AT contwalteralberto priceconvergenceinthecentralamericanregionalelectricitymarket
AT barrildiego priceconvergenceinthecentralamericanregionalelectricitymarket
AT carboagustin priceconvergenceinthecentralamericanregionalelectricitymarket
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