Modeling for the regional integration of electricity markets

Abstract

The regional integration of electricity markets has been established as desirable among the South American nations to meet demands through the possible consolidation of a unified competing market in the medium term (CAN, 2010). However, what remains to be defined are rules of the game with satisfactory benefits for all parties that have been demonstrated. In this paper we propose a model of power integration based on the Market Coupling scheme, which starts with the modeling of the national markets using the System Dynamics modeling methodology. As a result, the expected behavior of the system is obtained, except in the case of exports, in which, because of the assumption of an infinite transmission capacity between nations, it is seen to surpass the real values found in the market. The work presented in this document (based on two nations, Colombia and Ecuador) allows experimentation for the formulation of the rules of the game necessary in the regional integration of markets.