Colombia Firm Energy Market

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dc.contributor.authorCramton, Peter
dc.contributor.authorStoft, Steven
dc.date.accessioned2007-08-07T13:25:21Z
dc.date.available2007-08-07T13:25:21Z
dc.date.issued2007-01
dc.description.abstractA firm energy market for Colombia is presented. Firm energy—the ability to provide energy in a dry period—is the product needed for reliability in Colombia’s hydrodominated electricity market. The firm energy market coordinates investment in new resources to assure that sufficient firm energy is available in dry periods. Load procures in an annual auction enough firm energy to cover its needs. The firm energy product includes both a financial call option and the physical capability to supply firm energy. The call option protects load from high spot prices and improves the performance of the spot market during scarcity. The market provides strong performance incentives through the spot energy price. Market power is addressed directly: existing resources cannot impact the firm energy price. Since load is hedged from high spot prices, the market can rely on high prices to balance supply and demand during dry periods, rather than rationing.en
dc.format.extent196581 bytes
dc.format.mimetypeapplication/pdf
dc.identifier.citation"Colombia Firm Energy Market," (with Steven Stoft), Proceedings of the Hawaii International Conference on System Sciences, January 2007.
dc.identifier.urihttp://hdl.handle.net/1903/7052
dc.language.isoen_USen
dc.publisherHawaii International Conference on System Sciences
dc.relation.isAvailableAtDigital Repository at the University of Marylanden_us
dc.relation.isAvailableAtEconomics Departmenten_us
dc.relation.isAvailableAtCollege of Behavioral and Social Sciencesen_us
dc.relation.isAvailableAtUniversity of Maryland (College Park, Md.)en_us
dc.rights.licenseCopyright 2007 IEEE. Published in the Proceedings of the Hawai'i International Conference on System Sciences, January 2007, Big Island, Hawaii.
dc.subjectFirm energyen
dc.subjectElectricity Marketen
dc.subjectColumbia
dc.titleColombia Firm Energy Marketen
dc.typeArticleen

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