Abstract

TAPIA HERBAS, Mauricio. Determination of an Appropriate Natural Gas Price for the Bolivian Electric Sector. rlde [online]. 2013, n.19, pp.99-123. ISSN 2074-4706.

The bolivian electric sector is in a critical situation; the proofs are the difficulties encountered to satisfy electricity demand, generating energetic rationing. The low price for the energy generated discourages investment in hydropower and reduces profits of the new thermoelectric project. This situation is given by the state subsidy to the price of gas for thermoelectric generators. Consumers are the beneficiaries due to lower electricity rates than the latin American average, but this situation is unsustainable and soon consumers will face an energy shortage. This paper attempts to explore the real impact of fixed price of gas in the electricity sector while setting the right price of natural gas for the power sector to allow viable new investments in hydro and thermal, generating more promising scenarios for the electricity sector.

Keywords : Opportunity cost; natural gas; energy prices.

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