{"title":"Turmoil in the Chilean electricity sector: A failed attempt at using advanced contracts for differences to support the energy transition?","authors":"Jesús Ansede Ferreiro , Enrique San-Martín González","doi":"10.1016/j.jup.2024.101882","DOIUrl":null,"url":null,"abstract":"<div><div>The Chilean electricity market is at a critical moment. Some renewable energy generators that signed regulated power purchase agreements with distribution companies are experiencing financial distress. Generators assume locational basis risk under these contracts, which can be considered advanced contracts for differences. As price decoupling appeared in the network, some generators filed for bankruptcy. The Chilean government is studying measures to weather the storm, and an expert panel has been set up to assess them. The European Union is betting on advanced contracts for differences, but the Chilean empirical evidence calls for caution when adjusting plain contracts for differences.</div></div>","PeriodicalId":23554,"journal":{"name":"Utilities Policy","volume":"93 ","pages":"Article 101882"},"PeriodicalIF":3.8000,"publicationDate":"2025-01-03","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Utilities Policy","FirstCategoryId":"96","ListUrlMain":"https://www.sciencedirect.com/science/article/pii/S0957178724001760","RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q3","JCRName":"ENERGY & FUELS","Score":null,"Total":0}
引用次数: 0
Abstract
The Chilean electricity market is at a critical moment. Some renewable energy generators that signed regulated power purchase agreements with distribution companies are experiencing financial distress. Generators assume locational basis risk under these contracts, which can be considered advanced contracts for differences. As price decoupling appeared in the network, some generators filed for bankruptcy. The Chilean government is studying measures to weather the storm, and an expert panel has been set up to assess them. The European Union is betting on advanced contracts for differences, but the Chilean empirical evidence calls for caution when adjusting plain contracts for differences.
期刊介绍：
Utilities Policy is deliberately international, interdisciplinary, and intersectoral. Articles address utility trends and issues in both developed and developing economies. Authors and reviewers come from various disciplines, including economics, political science, sociology, law, finance, accounting, management, and engineering. Areas of focus include the utility and network industries providing essential electricity, natural gas, water and wastewater, solid waste, communications, broadband, postal, and public transportation services.
Utilities Policy invites submissions that apply various quantitative and qualitative methods. Contributions are welcome from both established and emerging scholars as well as accomplished practitioners. Interdisciplinary, comparative, and applied works are encouraged. Submissions to the journal should have a clear focus on governance, performance, and/or analysis of public utilities with an aim toward informing the policymaking process and providing recommendations as appropriate. Relevant topics and issues include but are not limited to industry structures and ownership, market design and dynamics, economic development, resource planning, system modeling, accounting and finance, infrastructure investment, supply and demand efficiency, strategic management and productivity, network operations and integration, supply chains, adaptation and flexibility, service-quality standards, benchmarking and metrics, benefit-cost analysis, behavior and incentives, pricing and demand response, economic and environmental regulation, regulatory performance and impact, restructuring and deregulation, and policy institutions.
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