Gaining momentum
Few regions of the world exemplify the variety of approaches to power sector reform as thoroughly as Latin America. At one end of the spectrum stands Chile, which has successfully restructured its electric power industry, privatizing a large share of its formerly state-owned utility assets. Of all power markets in Latin America, Chile`s is the most open to private developers, with transparent pricing policies and competitive procurement procedures. At the other end of the spectrum, Venezuela`s privatization program has stalled, and the power market has become less accessible to private investment than before the current administration was elected. Many Latin American countries share some important challenges. First, a lack of credit worthiness among electric utilities makes it difficult to finance power projects that rely on long-term power sales agreements. Second, lingering fallout from Mexico`s financial crisis continues to affect commercial lenders` confidence in Latin America in general. Third, efforts at privatization and power market liberalization have proceeded in fits and starts, with some countries seeming to take as many steps backwards as forward. Nevertheless, Latin America remains one of the most attractive regions of the world for independent power development. This paper examines recent developments in key markets.
- OSTI ID:
- 161589
- Journal Information:
- Independent Energy, Vol. 25, Issue 8; Other Information: PBD: Oct 1995
- Country of Publication:
- United States
- Language:
- English
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