Case study

Multiple departments of a Latin American Government

Extending the benefits of its competitive electricity market to small, distant  municipalities

PA proposed an institutional structure with independent technical and financial bodies to support small municipalities in developing electrification plans and exploring options for private sector involvement. A regulatory structure was developed linking electricity rates to different patterns of service. A range of supply options was offered, from minimal service based on batteries and solar panels to near continuous service with specific reliability standards. This approach attracted interest from the private sector because the municipal authorities could offer reasonable concession terms and guarantee cost recovery.