Latin'amnerica and the Ca Aribbean
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Latin'Amnerica and the Caaribbean -- Technical Department I . o Regionat Studies Program Public Disclosure Authorized Report No. 7 The Evolution, Situation, and Prospects of the Electric Power Sector in the Public Disclosure Authorized Latin American and Caribbean Countries Volume 11 Descriptionsof IndividualPower Sectors by Public Disclosure Authorized Infrastructure& Energy Division and LatinAmerican Energy Organization (OLADE) August 1991 Public Disclosure Authorized Papers in this series are not formal publications of the World Bank. They present preliminary and unpolished results of country analysis or research that is circulated to encourage discussion and comment; citation and the use of such a paper should take account of its provisional character. The findings, interpretations, and conclusions expressed in this paper are entirely those of the author(s) and should not be attributed in any manner to the World Bank, to its afftliated organizations, or to members of its Board of Executive Directors or the countries they represent. This document was prepared by World Bank and OLADE teams on the basis of data provided by the electric power sectors of the LAC region and data available in World Bank and OLADE files. VOLUME 11 TABLE OF C(OMTENTS PREFACE INDIVIDUAL COUNTRY REPORTS PAGES 1. Argentina ARG-1 - 11 2. Barbados BAR-1 - 10 3. Belize BEZ-1 - 9 4. Bolivia BOL-1 - 9 5. Brazil BRA-I - 11 6. Chie CHL-1 - 9 7. Colombia CLM-1 - 10 8. Costa Rica COS-1 - 10 9. Dominica DMC-1- 9 10. Dominican Republic DOM-1- 10 11. Ecuador ECU-I - 10 12. El Salvador ESL-1 - 10 13. Grenada GRD-1 - 2 14. Guatemala GUA-1 - 10 15. Guyana GUY-1 - 10 16. Haiti HAI- 1 - 9 17. Honduras HDS-1 - 11 18. Jamaica JAM-1 - 9 19. Mexico Cr,X.1 - 10 20. Nicaragua NIC-1 - 10 21. Panama PAN-1 - 10 22. Paraguay PAR-1 - 9 23. Peru PER-1 - 10 24. St. Lucia STL-I - 2 25. St. Vincent STV-1 - 8 26. Suriname SRM-1 - 8 27. Trinidad & Tobago TRI-1 - 10 28. Uruguay URU-I - 11 29. Venezuela VEN-I - 11 ANNEXES Annex No.1 Country Data Samples Annex No.2 Definitions of Indicators A-inex No.3 Region Summary Tables TABLE 1 The Sector and the Economy TABLE 2 Service Coverage TABLE 3 Labor Productivity Indicators TABLE 4 Sector Profitability TABLE 5 Sector Funding TABLE 6 Installed Capacity TABLE 7 Gross Generation TABL.E 8 Installed Capacity and Demand TABLE 9 Eiectricity Sales TABLE 10 Electricity Losses Annex No.4 Country Maps Argentiria Barbados Belize Bolivia Brazil Chile Colombia Costa Rica Dominica Dominican Republic Ecuador El Salvador Guatemala Guyana Haiti Honduras Jamaica Mexico Panama Paraguay Peru St. Lucia St. Vincent Trinidad & Tobago Uruguay Venezuela REFACE This study analyzes the evolution, situation, and prospects of the public electric power sectors! in the Latin American and the Caribbean (LAC) region. At present, they constitute a serious burden on fiscal resources and foreign debt and could become a constraint on development, as the current situation will eventually cause reliability and availabilityof service to deteriorate. The main objectives of the study are to (i) promote awareness among the decision makers in the region and the international organizations of the main issues facing the electricity supply industry in LAC and (ii) to encourage individual countries to search for options to solve the main problems of their respective power sectors thus reducing their consequent burden on government finances. The study analyzes the institutional evolution of the sectors as well as patterns and trends for key economic, operational, fiscal, and financial indicators. It is based on data pertaining to the power sectors of 29 countries in the region (Annex No.1) and focuses on the causes of the present crisis. It identifies the key issues that must be addressed and presents a series of options for reforming the sectors. The options available to the sectors fall into three categories. The first concerns ways to improve efficiency in order to reduce investment needs. The second deals with methods that can be utilized to mobilize resources to increase funding sources. The third deals with the regulatory and corporate aspects of the legal framework. The study was prepared by the World Bank in a joint effort with the Latin American Energy Organization (OLADE). The output of the study is contained in two volumes. Vo!ume I is the regional report. Volume II contains the descriptions of each individual country pow, sector which support the general conclusionsin the regional report and show the unique conditi_..s of each sector. Most of the sector data was provic'- by the individualcountries of the region. In cases where it was not provided by the countries, data available in World Bank or OLADE files was used. The source for economic and social data was the World Bank's Bank Economic and Social Database (BESD). Energy consumption per capita figures for 1988 were obtained from the World Bank's World Development Report 1990 Poverty. Electricity service coverage was estimated using data on residential customers, household density, and population. The financial data was provided in many currencies, both in constant and current monetary units. In order to make comparisons among countries meaningful and to obtain regional totals, all monetary units were converted into 1989 US$, as this year was chosen as the cut-off between the historical and projected data. A two step approach was used for this purpose. First, all figures were transformed into constant 1989 local currency using the GDP deflator obtained from BESD data. Second, the figures were transformed to 1989 US$ using the 1989 exchange rates from BESD. Because of the inherent deficienciesresulting from any conversion of monetary units and from the differences in the accounting systems of power utilities in the region, the study makes extensive use of patterns and trends which obviate to a certa.n extent said deficiencies. A quality control process has also been carried out through officials of each individual country, appointed as responsible coordinators for the data collection process. A greater emphasis has been placed on reliability than on accounting accuracy of the data. Definitions of the indicators and variables contained in the study can be found in Annex No. 2. Annex No. 3 contains summary tables for key variables for all the countries in the region. Annex No. 4 contains the latest country maps available in the World Bank's files. 1J1hisstudy excludesdata and analysis of the captive generation and private supplies although this might be significant in a few countries. ARGENTINA ELECTRIC POWER SECTOR ARGENTINA POWER SECTOR DATA SUMMARY SHEET 1989 Electric power in Argentina is supplied by national, provincial,and municipal utilities. The main utilities, which are included in this study and account for nearly 90% of the country's installed capacity, are Servicios El1ctricosdel Gran Buenos Aires (SEGBA), Agua y Energfa El1ctr.ca (AyE), HidroEl6ctricaNorpatagonica S.A. (HIDRONOR), Comisi6n Nacional de Energfa At6mica (CNEA), the binational (Uruguay) Comisi6n T6cnica Mixta de Salto Grande (CTMSG), Direcci6n dc Energfa de Buenos Aires (DEBA), Empresa Provincial de Energfa de Cordoba (EPEC), Empresa Provincial de Energ(a de Santa Fe (EPE), and Energfa de Mendoza S.A. (EMSA). The binational (Paraguay) Ente Binacional Yacyreta (EBY) project is also included. GENERALECONOMIC DATA ELECTRICITYSOURCES POPULATION '000 31,883 CAPACITY ENERGY AREA '000 SQKM 2,767 (MW) (GWh) POPULATION PER SQKM 12 AUSTRALES PER US$ 423.34 THERMAL 7,613 28,038 GDP, millions of US$ 59,246 HYDRO 6,620 14,208 GDP PER CAPITA, US$ 1,858 NUCLEAR 1,018 6,113 GDP GROWTH RATE, % * 0.0 GEOTHERMAL 0 0 1988 ENERGY CONSUMPTION OTHER 0 0 PER CAPITA (kg oal equiv.) 1,523 IMPORTS 0 ELEC. SALES GROWTH RATE, % * 3.1 PURCHASES 0 ELEC. CONSUMP.PER CAPITA, kWh 1,162 TOTAL 15.251 48.359 1989 ELEC. SERVICE COVERAGE, % 95 POWERRXPENDITURES/GDP, % * 4.2 RESERVE MARGIN NA NA ELECTRIC POWER SYSTEMDATA ELECTRICITY SALES 1987 DATA CUSTOMERS'000 8,835 GWh % EMPLOYEES 54,404 CUSTOMERSPER EMPLOYEE 162 RESIDENTIAL 10,959 30 TOTAL SALES PER EMPLOYEE, MWh 699 COMMERCIAL 4,136 11 INDUSTRIAL 17,277 47 BULK SALES # 0 0 OTHER 4,689 12 DOMESTIC SALES 37.061 100 SECTOR FINANCES EXPORTS 0 TOTAL 37,061 AVERAGERATE (US$IMhW) 34 OPERATINGMARGIN (WIO DEPR), Z -38 SYSTEM LOSSES 9,537 ## 20 OPERATING MARGIN (WI DEPR), 1 -18 RATE OF RETVRN, % -10.8 INDEBTNESS, S 41 DEBT SERVICE COVERAGE, times * -0.2 * - average per year since 1985 SELF-FINANCING RATIO, Z * -86 # - to other utilities not In the study ##C- as a percentage of available energy ARGENTINA ELECTRIC POWER SECTOR INSTITUTIONAL ASPECTS Electricity in Argentina is supplied by four national utilities, one binational agency, 19 provincial utilities, and several cooperatives. Tne national utilities are: Agua y Energla Eldctrica Sociedad del Estado (SEGBA S.A.), Hidroeldctrica Norpatag6nica Sociedad An6rima (HIDRONOR S.A.), and the Comisi6n Nacional de Energfa At6mica (CNEA). The binational agency is the Comisi6n Tilcnica Mixta del Salto Grande (CTMSG). National utilities with the exception of CNEA report to the Ministry of Economy through the Under Secretamyof Electric Energy (SE). SE has overall responsibility for planning and operations at the national level and for collection and distribution of electricity funds. CNEA falls under the authority of the Executive Branch while CTMSG reports to the Ministry of Foreign Affairs. AyEE is responsible for generation and transmission nationwide. It also distributes electricity in four provinces. A national dispatch center (DUC), operated by AyEE, is in charge of coordinating the operations of the larger electricity producers to ensure the economic use of generation facilities. SEGBA generates, distributes, and transmits to the Greater Buenos Aires area.