Transmission expansion in fast growing economies and the challenges of renewables integration

Transmission expansion in fast growing economies imposes severe challenges to electricity markets, given the need for planning and executing major midterm investments in an environment of uncertainty in load growth and generation expansion, coupled to the arrival of distributed renewable energy resources. This paper describes the approaches of two countries, Brazil and Chile, to tackle the challenges of transmission expansion, focusing on treatment of uncertainties, schemes for implementing expansion plans, and problems currently faced by different stakeholders. Renewable energy projects have experienced a significant development in the two countries, despite of difficulties faced by project developers with regard to financing, contracting, and, particularly, grid connection. We discuss solutions adopted or currently under consideration for the integration of renewables to the transmission system.