IEEE Power & Energy Magazine - July/August 2016 - 53

By Rafael de Sá Ferreira,
Hugh Rudnick,
and Luiz Barroso

T

TRANSMISSION SYSTEM EXPANSION BOOMED IN
several South American countries in the 2000s and the early
2010s. Network capacity additions were required to cope
with fast-growing electricity demand, prompted by average
gross domestic product growth rates of around 5% per year
in 2003-2008 and 3% per year in 2008-2013. Following a
trend verified in most infrastructure segments, private sector
participation in transmission investments increased significantly in the period, which was the result of reforms in the
electricity industry that had initiated in the 1990s.
In some of the largest electricity systems in Latin
America, these reforms included common elements for
the transmission segment: centralized and determinative
transmission expansion planning by national-level governmental institutions, combined with decentralized implementation and operation of transmission assets, by agents
selected by means of auctions for transmission concessions.
This model experienced great success, but it is currently
facing challenges also common to several South American
countries. Some of the most important problems are rooted
in transmission implementation. Acquisition of rights-ofway and environmental licensing issues are resulting either
in centrally planned expansion remaining on paper longer
than the central planner would wish or, when the concessions to implement and operate the assets are acquired, in
the frustration of the expectations of investors, who may be
exposed to cost overruns in implementation or the financial
consequences of delays.

©ISTOCKPHOTO.COM/77DZIGN

The Expansion
of Transmission
Digital Object Identifier 10.1109/MPE.2016.2547281
Date of publication: 16 June 2016

54

ieee power & energy magazine

1540-7977/16©2016IEEE

july/august 2016



http://www.ISTOCKPHOTO.COM/77DZIGN

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