Has the Promotion of Energy Solutions in Non-Interconnected Zones in Colombia been Effective?: An Analysis of Institutional Structure

David Tobón Orozco, Jorge Florez-Acosta and Gustavo Adolfo Castillo Quintero ()
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Gustavo Adolfo Castillo Quintero: Universidad de Antioquia

No 47, Grupo Microeconomía Aplicada from Universidad de Antioquia, Departamento de Economía

Abstract: The purpose of this article is to evidence the current state of non-interconnected zones (ZNI) in Colombia, in terms of the offer of energy, regulation and institutional structure, in order to determine the incentives that seek to implement efficient solutions for these zones. For this purpose, there is on the one hand an analysis of the structure of offer in the non-interconnected zones, and regulation of costs and tariffs applicable; and on the other, incentives given in the law for potential suppliers. Among these incentives, we identify and simulate the feasibility of creating umbrella projects, in the context of clean development mechanisms. The conclusion is that the institutional structure and incentives now in place have not been effective in these areas, and there are no clear or strong strategies to take advantage of their potential to generate electricity with alternative sources and make use of clean development mechanisms.

Keywords: Non-interconnected zones; regulation; incentives; clean development mechanism (search for similar items in EconPapers)
JEL-codes: D02 L94 L98 (search for similar items in EconPapers)
Pages: 27 pages
Date: 2009-07
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