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Past and possible futures of the Argentine electricity sector
The Argentinean electricity sector was modernized in the 1990s with aims to promote technological change, privatization, and regulation through specific agencies, alongside a macroeconomic stabilization plan. After the 2001 crisis, tariffs were frozen, leading to distortions characterized by heavy s...
The Argentinean electricity sector was modernized in the 1990s with aims to promote technological change, privatization, and regulation through specific agencies, alongside a macroeconomic stabilization plan. After the 2001 crisis, tariffs were frozen, leading to distortions characterized by heavy subsidies and reduced reliance on market mechanisms. The exploration focuses on alternative institutional frameworks aiming to recreate strong modernization incentives seen in the 1990s, while addressing regulatory issues related to investment incentives in generation, equity distribution, and recent technological developments (such as distributed generation, increasing role of renewables, and smart meters). The analysis questions the outcomes of the 1990s reforms, considering both positive and negative experiences, and discusses potential institutional designs that could simultaneously enhance efficiency, equity, and facilitate an orderly transition to new technological advancements.
