After a quarter of a century since Brazil started its power sector reform, there are a number of lessons learned and best practices to inform the policy debate across Latin America. Given large amounts of hydro resources, and the imperfections in the mechanism for system expansion and the scheme adopted to induce efficient contracting Brazil engaged in a second wave of reforms in 2004. This process resulted in the incorporation of the obligation for every load in the system to have a contract to back that power, with the contracts obligated as the result of auctions. The criterion for contracting at auction is the smallest tariff with standardized contracts. Terms range from 5 to 30 years. Brazil has expanded its installed capacity almost two-fold from 91 GW in 2005 to 158 GW in 2017.
Will Argentina’s provinces have a renewed role in national energy policy under the Fernandez administration?
Alberto Fernandez assumed the presidency of Argentina on December 10. According to reports, the administration’s energy policy is set to be submitted to Congress for debate with the goal of concluding it before the end of the extraordinary session in February. There have been a series of meetings and statements since President Fernandez took office that point to a renewed role for Argentina’s provinces in helping to set the agenda and shape the policy debate.