Briefing on Central American Power Markets: Lessons Learned and Policy Recommendations with Particular Emphasis on Competitive Procurement
This briefing will discuss the key policies and lessons learned from Central American Power Markets. The authors, Juan A.B. Belt and Silvia Alvarado de Córdoba, will present their analysis of the power sector reforms that have taken place in Central America countries and will identify measures to increase the efficiency of the region’s power markets. The paper focuses on the use of competitive bidding (auctions) for power and discusses the issues around the functioning of the Regional Central American Interconnected Market (Mercado Eléctrico Regional or MER). The authors argue that given the size of the Central American markets, their level of development, and the socioeconomic environment they face, lessons from those countries can be applicable to a wide range of countries in sub-Saharan Africa, Asia, and the Middle East and North Africa.