IEEE Power & Energy Magazine - July/August 2016 - 62
independent market operator took measures to avoid that the
absence of the project resulted in a loss of reliability to the
supply of Bogotá, the capitol city. These included not only
operation measures (such as generation redispatch) but also
the installation of static condensers and additional transformers in existing substations.
Seeking Solutions to the
Implementation Conundrum
Colombian institutions have already taken the first steps to
mitigate implementation problems, and other measures have
been proposed in regulatory instruments currently under
public consultation.
Incorporation of the Environmental and Land-Use
Dimensions in Transmission Expansion Planning
For the elaboration of the most recent transmission expansion plans, UPME has been executing preliminary assessments of social-environmental issues, including potential
land-use conflicts, which may affect the implementation
of facilities. These efforts have been carried out since the
2014-2028 plan, homologated in January 2015, and focus
on identifying early warnings for the development of
facilities and to support the definition of realistic implementation times by the planner. The information on early
warnings has also been incorporated as part of the support
documentation to transmission auctions in an effort to not
only improve the definition of target CODs by the system
planner but also to aid the evaluation of implementation
risks by transmission companies.
Incorporation of New Technologies as Means of
Improving Performance of Existing Assets
CREG, the Colombian regulator, proposed several modifications to the transmission regulation in December
2014. The proposals, contained in Resolution #178/2014,
focus on legacy assets, which were already existing when
the auction mechanism was introduced in Colombia.
These proposals include adjustments to remuneration
mechanisms and to performance incentives, including a
menu of contracts. The objective of the adjustments is
not only to improve incentives for service quality and
for the substitution of assets approaching the end of their
lifetime but also to provide incentives for incorporating new technologies to the system. These include smart
technologies, among them, presumably, those required
to enhance the observability and operational flexibility of legacy assets, such as sensoring and maneuvering
equipment. As in the case of Brazil, the proposals can be
seen as an additional effort to make the most of existing
assets, improving their performance and loadability, in
a context where the implementation of Greenfield assets
encounter barriers.
As of this writing, Resolution #178/2014 is under public
consultation. Although transmission companies have welcomed certain aspects of the proposals, certain changes in
remuneration mechanisms have made them reluctant to support the resolution; particularly, the shift from a gross optimized replacement cost approach to a depreciated optimized
replacement cost one, as the basis of asset valuing.
Cross-Country Comparison
and Lessons Learned
Table 3 summarizes the main elements of the strategies
adopted or under investigation in Brazil, Chile, and Colombia to cope with implementation issues hindering timely and
sufficient transmission expansion. These results should be
interpreted in light of the fundamental elements of the transmission expansion framework in the analyzed countries: 1)
centralized and determinative planning by national institutions and 2) decentralized implementation by means of
transmission concessionaires selected via auctions.
Some factors contribute to facilitating the accommodation of the drive toward proactive planning within the transmission expansion framework used in the countries, the first
of which being the execution of determinative transmission
table 3. A summary of the main elements of strategies adopted by each country.
Class of Strategies
Stronger Role of State and Social-Environmental
Licensing, Routing and/or Acquisition of Rightsof-Way
Making the Most of
Existing Assets
Country
Proactive Planning
Brazil
First experiences by EPE
in 2014
Chile
Proposals contained in the bill (Message #731-363) issued in 2015; the bill currently under evaluation
Colombia
Since 2014, UPME
incorporates socialenvironmental dimension
in transmission expansion
plans
july/august 2016
Bill #378/2013 is still under evaluation; MME
reportedly seeking solutions to improve
licensing process
Secondary goal of
adjustments to regulation
on reinforcements and
technical improvements
in 2014
Proposals contained
in CREG Resolution
#178/2014, currently under
evaluation
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