(Redes inteligentes y mecanismo de respuesta de la demanda: el caso del sector eléctrico colombiano) Smart Grids and Demand Response Mechanism: The Case of the Colombian Electricity Market

14 Pages Posted: 11 Dec 2018

See all articles by John Garcia

John Garcia

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Alejandro Gutierrez

Interconexión Eléctrica S.A. E.S.P ISA

Luisa Vargas Tobón

Universidad EAFIT

Hermilson Velasquez

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Date Written: November 1, 2018

Abstract

Spanish Abstract:
Las redes inteligentes tienen hoy un papel preponderante en el debate internacional acerca del diseño y la regulación de los mercados eléctricos. Este artículo analiza los potenciales efectos de la implementación de un mecanismo de respuesta de la demanda en Colombia, con características similares al utilizado en el mercado de PJM. Usando series de tiempo y controlando por la alta volatilidad que se presenta en el precio de corto plazo (precio de bolsa), estimamos que tal mecanismo habría logrado significantes ahorros a los consumidores. Por ejemplo, si el mecanismo de respuesta de la demanda hubiera sido implementado durante 2015, el precio de bolsa en horas pico podría haber sido un 30% menor y los consumidores habrían ahorrado aproximadamente $COP99.000 millones.

English Abstract:
Smart grids now figure prominently in the international debate on the design and regulation of electricity markets. This paper analyzes the potential effects of implementing a demand response mechanism in the Colombian wholesale electricity market with characteristics similar to that of the PJM market. Using time series models and controlling for the high volatility presented in the spot price, we estimate that such a mechanism could yield significant economic savings for customers. For example, if the demand response mechanism had been implemented during 2015, the spot price in peak hours would have been 30% lower and customers would have saved approximately COP $99.000 million.

Keywords: Demand response, Colombian electricity market, ARIMAX – ARCH, Economics benefits.

JEL Classification: C32, D47, L52

Suggested Citation

Garcia, John and Gutierrez, Alejandro and Vargas Tobón, Luisa and Velasquez, Hermilson, (Redes inteligentes y mecanismo de respuesta de la demanda: el caso del sector eléctrico colombiano) Smart Grids and Demand Response Mechanism: The Case of the Colombian Electricity Market (November 1, 2018). Center for Research in Economics and Finance (CIEF), Working Papers, No. 18-20. Available at SSRN: https://ssrn.com/abstract=3297096 or http://dx.doi.org/10.2139/ssrn.3297096

John Garcia (Contact Author)

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

Alejandro Gutierrez

Interconexión Eléctrica S.A. E.S.P ISA ( email )

Calle 12 sur N° 18 -168
Medellín, Antioquia
Colombia

Luisa Vargas Tobón

Universidad EAFIT ( email )

Carrera 49 N° 7 sur – 50
Bogotá, Antioquia 00000
Colombia

Hermilson Velasquez

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

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