Advertisement

Schedule Delays and New Financing for the Argentine Electricity Sector Growth

Conference paper

Abstract

Apparently the electricity sector of Argentina has suffered in the past from excessive capacity planning, owing to overoptimistic forecasts of the demand growth rate. But because of the long delays involved and lack of financial backing this advantage has been progresively lost. The present official planning only provides for renovation and demographic growth, not allowing for economic growth. Therefore, the actual supply-demand balance of electricity can easily be worn away by technical obsolescence and aging process of the actual installed capacity of electricity production.

The problem behaviour arises when the timing of new capacity investment is delayed, falling behind the programmed schedule of new plants, without being able to meet the electricity demand . This could happen mainly due to political prices well below costs because of the inflation and or social subsidization, which leads, in turn, to the discapitalization of the sector, that still remains nationalized. A system dynamics model is used to explore the trade-off between construction delays (which entails costs of unsatisfied demand) and construction speed up (which entails financial costs).

Keywords

Electricity Demand Power Demand Electricity Sector Demographic Growth Capacity Investment 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. Ford, A.; Youngblood, A. (1988): “Technical Documentation of the Electric Utility Policy and Planning Analysis Model. Version 4”. Los Alamos National Laboratory. University of California. Paper LA-9347-M5.Google Scholar
  2. Pescarmona; E. (1988): “El problema de la energia eléctrica en la Argentina” “Ambito Financiero” Journal, Buenos Aires, 9th May 1988, p. 14.Google Scholar
  3. Rego, J. (1982): “Long-Term Policies for Electrical Generating Capacity in Argentina”. Unpublished Ph.D. Thesis, University of Bradford.Google Scholar
  4. Richardson, G.; Puch, J.(1981):“Introduction To System Dynamics Modelling”. Cambridge, Mass.: The MIT Press.Google Scholar
  5. Secretaria de Energia (1986): “Plan Energético Nacional 1986–2000: Resumen.” Ministerio de Obras y Servicios Publicos de la República Argentina.Google Scholar
  6. Solanet, M. (1988): “Situación y perspectivas del suministro eléctrico”, Energeia, Mensuario Energético Argentino, No. 65, August 1988, pp.24–26.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 1989

Authors and Affiliations

  • J. Rego
    • 1
  1. 1.National Council of Scientific and Technological Research of Argentina — CEMA(1426) Capital FederalArgentina

Personalised recommendations