Economist Ernesto Selman of the Regional Center for Sustainable Economic Strategies (CREES) says that when the new coal-fired power plants enter in operation, the government subsidy will continue as is. He said that the government currently spends US$1.3 billion a year on electricity subsidies. He said that in four or five years’ time when the new coal-fired plants enter into operation, the subsidy will have grown to US$1.7 billion. He said that by 2018, consumption will have increased to 3,000 megawatts from the 2,500 megawatts at present. “This means the plants will be a mere patch on the electricity crisis.
Selman said that the true electricity problem is not one of generation, but distribution and marketing, where there are losses of 35%.
He said that more than the construction of two coal-fired plants, what the sector requires is a structural reform. He said it would have been better for the government to open a tender and purchase the power from the bidder that offers the best conditions.
Selman made his comments when interviewed by Hector Herrera Cabral on D’Agenda, Channel 11.
http://www.diariolibre.com/noticias/2014/08/31/i770331_crees-las-plantas-carbn-sern-parche-crisis-elctrica.html