Abstract

Various challenges faced by South American countries for electricity supply are described. The primary challenge for South American countries is to ensure sufficient capacity and investment to serve reliably their growing economies. Brazil has recognized that the key point of competition is for the contracts with loads that results in the entrance of new capacity, which has led to the implementation of Power purchase agreement (PPA) auctions to couple efficient contracting with demand uncertainty. Unexpected natural gas supply difficulties in Chile have introduced the need for new decisions on the energy agenda.