Efficient capacity investment and joint production agreements in an oligopolistic electricity market: The HidroAysén joint venture project☆

Publication year: 1Source: Energy Policy, In Press, Corrected Proof, Available online 17 August 2010Ricardo, Raineri , Gonzalo, ContrerasWe develop a model for a power market with the characteristics of the Chilean power supply industry, which is an integrated system with a system operator (SO) with a vast authority to define the dispatch of the system. We evaluate whether a large joint power generator project made up by the two largest power generators is an anti-competitive project. Considering four investment technologies for power generation, namely, hydro, coal, diesel, and an advantageous hydro technology which can only be built in a large scale (HidroAysén) for the joint venture case, we use an oligopolistic Cournot model and a Benevolent Social...