Market Power Assessment of the Central America Regional Electricity Market

This paper focuses the attention on the market power assessment of the Central American Regional Electric Market. First, the characteristics of the market under study are described, then five measures are used to evaluate the market power of the agents. Furthermore, this paper develops a method to consider the transmission restrictions that occur in the regional electrical system. The authors used historical data from 2017 to 2020 to make the calculations; the results obtained are presented where it is observed that the possibilities of exercising market power for agents have been increasing through the years, and Costa Rica is the country with the highest probability of exercising it.