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dc.titleNavigating the energy transition in Latin America and the Caribbean: volatility and price signaling in short-term electricity markets
dc.contributor.authorBalza, Lenin
dc.contributor.authorMata, Carlos
dc.contributor.authorMatías, David
dc.contributor.authorRíos, Ricardo
dc.contributor.orgunitEnergy Division
dc.coverageLatin America
dc.coverageThe Caribbean
dc.date.available2024-10-17T00:10:00
dc.date.issue2024-10-17T00:10:00
dc.description.abstractThe observed increase in fossil fuel prices, exacerbated by extreme climate events such as prolonged droughts, has led to significant short-term electricity price volatility across several markets in Latin America and the Caribbean. Simultaneously, the rapid integration of variable renewable energy sources, such as solar and wind power, has introduced new operational challenges for electricity markets. This evolving landscape has intensified the debate on the optimal market design, particularly in terms of economic efficiency and the appropriate price signaling mechanisms during the energy transition. Against this backdrop, key questions arise regarding regulatory adjustments that could improve short-term price signals and ensure an efficient and competitive dispatch. This study examines the fundamental components of short-term electricity markets in Latin America and the Caribbean, identifies international best practices, and assesses the primary drivers of spot price volatility. Additionally, it provides regulatory recommendations aimed at enhancing the integration of variable renewables, strengthening market resilience, and optimizing operational efficiency in electricity markets.
dc.format.extent147
dc.identifier.doihttp://dx.doi.org/10.18235/0013200
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Navigating-the-energy-transition-in-Latin-America-and-the-Caribbean-volatility-and-price-signaling-in-short-term-electricity-markets.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/spanish/document/Navegando-la-transicion-energetica-en-America-Latina-y-el-Caribe-volatilidad-y-senalizacion-de-precios-en-los-mercados-electricos-a-corto-plazo.pdf
dc.identifier.urlhttps://publications.iadb.org/publications/portuguese/document/Navegando-pela-transicão-energetica-na-America-Latina-e-no-Caribe-volatilidade-e-sinalizacão-de-precos-nos-mercados-de-eletricidade-de-curto-prazo.pdf
dc.language.isoen
dc.publisherInter-American Development Bank
dc.subjectElectricity
dc.subjectElectricity Tariff
dc.subjectEnergy
dc.subjectEnergy Transition
dc.subjectRegulation
dc.subjectRenewable Energy
dc.subjectNatural Gas
dc.subjectCompetitiveness
dc.subjectInvestment
dc.subjectElectricity Market
dc.subjectDebtor Finance
dc.subjectLoan Operation
dc.subjectEnergy Planning
dc.subjectEnergy Market
dc.subject.jelcodeL94 - Electric Utilities
dc.subject.jelcodeP18 - Energy-Environment
dc.subject.jelcodeO13 - Agriculture • Natural Resources • Energy • Environment • Other Primary Products
dc.subject.jelcodeQ41 - Demand and Supply • Prices
dc.typeMonographs
idb.identifier.pubnumberIDB-MG-01237
idb.operationRG-E1790
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