Grupo de Economia da Energia

Posts Tagged ‘energy integration’

Energy integration in South America: motivations, obstacles and achievements

In energy on 24/05/2010 at 01:00

 

By Renato Queiroz and Thaís Vilela (*)

Motivations and Difficulties

Despite several bilateral agreements executed over the years, the energy integration process in South America develops gradually. The overcoming of certain barriers to be outlined later is the basis for achieving a fully integrated market. It is important to mention that the issue raised is the energy integration among countries of a continent, involving strategic, political and economic issues. Thus, there is no relation with energy interconnection, which is an energy transmission from one country to another one. The first concept corresponds to a complex process, since it is subject to factors related to international relations.

The integration experiences in Europe have shown that the development of regional energy integration is subject to lengthy multidimensional processes and under complexity often unpredictable, because there are several players involved in decision-making that often impact the integration process. Indeed, governments, regional and international energy companies, non-governmental organizations, multilateral lending institutions, regional bodies, among others, with their powers, influence the results of decisions.

However, we consider that energy is a vector suitable for integration between continents and has characteristics that promote agreements for the rational utilization of natural resources. It also creates opportunities to reduce inequality in the countries involved, contributes to the economic and social development in the region and, above all, provides greater energy security because it favors the consumer countries to achieve diversification of energy sources through imports. Continue lendo »