Press Release 11 December 2008
WEC Study shows:
Huge scope for energy integration
in Latin America
"Latin America and the Caribbean have exceptional conditions for building up a regional energy system, which would deliver a much-needed boost to energy security and more deeply integrate the region into the global economy", said Norberto de Franco Medeiros, Vice Chair Latin America/Caribbean of the World Energy Council (WEC) in launching the WEC study "Regional Energy Integration in Latin America and the Caribbean".
The WEC study found that some countries in the region have power surpluses, which could be used in the integration process. The region is also abundant in crude oil, natural gas, and hydropower. Energy market integration would also help alleviate the possibility of energy rationing in a region where all countries are vulnerable to energy shortages because of the intensive use of hydro sources.
However, the region is in the nascent stage of energy integration: most of the integration projects in the region are bilateral in scope and many of these 40 projects under various stages of planning are heavily dependant on the political context for their execution, the WEC found.
In addition to interconnecting electricity and gas pipeline systems, the WEC recommends expanding regional energy trading, which means institutional and regulatory systems must be made more compatible.
The WEC study analysed 40 studies, 13 of them in depth. Based on an examination of national energy systems and regulatory frameworks, the current level of energy prices and energy resources, and cross-border energy projects, the study group recommends the following measures to accelerate energy market integration, among others:
Introduce the concept of regional security reservoirs among Brazil, Argentina, Uruguay and Paraguay.
Expand the use of natural gas and hydropower.
Reduce the consumption of fossil fuels and explore the surpluses.
Attract private sector investment in energy integration projects.
To read the entire report, click here.
The World Energy Council (WEC) is the foremost multi-energy organisation in the world today. WEC has Member Committees in over 90 countries, including most of the largest energy producing and energy consuming countries. Established in 1923; the organisation covers all types of energy, including coal, oil, natural gas, nuclear, hydro, and renewable, and is UN-accredited, non-governmental, non-commercial and non-aligned.
WEC's Mission is "To promote the sustainable supply and use of energy for the greatest benefit of all."
The World Energy Council in partnership with Oliver Wyman (global consulting firm) has over the past year worked on its third Assessment of country energy and climate policy aiming to identify key areas for policy improvements and to understand how successful policies can be transferred from one country to another. more >