Incentives for wind power investment in Colombia

This paper develops an energy policy measure for renewable sources in Colombia, in particular wind generation. The proposal is done at the decentralized level, in isolated areas of the country, where electricity coverage is below 12% and wind speed is suitable for power generation. The goal of this...

Full description

Autores:
Contreras, Javier
Rodríguez, Yeny E.
Tipo de recurso:
Article of investigation
Fecha de publicación:
2016
Institución:
Universidad ICESI
Repositorio:
Repositorio ICESI
Idioma:
eng
OAI Identifier:
oai:repository.icesi.edu.co:10906/83458
Acceso en línea:
http://dx.doi.org/10.1016/J.RENENE.2015.10.018
https://www.sciencedirect.com/science/article/pii/S0960148115303712?via%3Dihub
https://www.researchgate.net/publication/283213660_Incentives_for_wind_power_investment_in_Colombia
http://repository.icesi.edu.co/biblioteca_digital/handle/10906/83458
Palabra clave:
Energía eólica
Subastas
Riesgo moral
Economía
Economics
Rights
openAccess
License
https://creativecommons.org/licenses/by-nc-nd/4.0/
Description
Summary:This paper develops an energy policy measure for renewable sources in Colombia, in particular wind generation. The proposal is done at the decentralized level, in isolated areas of the country, where electricity coverage is below 12% and wind speed is suitable for power generation. The goal of this policy is focused on increasing electricity coverage in those remote areas of the country that have high winds in order to develop clean generation investments that can represent a benefit for low-income users. Thus, a mechanism for financing these kinds of investments is proposed, involving the private sector and using the mechanism known as Public Private Partnerships – PPPs. PPPs are mechanisms used by the public sector to establish a contract with the private sector. The private sector provides capital and ability to develop projects, while the public sector holds the responsibility in service delivery. To model the relationship between public sector and private investors, a bilevel programming method for efficient resource allocation, combining an auction mechanism and moral hazard, is presented. A case study is shown in the Colombian context.