Electric flow

By Tom Azzopardi
Few regions are as rich in energy resources as South America – from huge rivers, massive reserves of fossil fuels and significant potential for solar and wind power – but converting these into competitive and reliable electricity supplies is often far from simple.
In Brazil, Argentina and Chile, changing climatic conditions, badly designed public policies and growing environmentalism have undermined the power sector’s attempts to expand in line with the needs of their economies.
But others, like Colombia and Peru, through long-term planning and diversifying supplies, have been able to provide their industries with the energy to grow.
 
Chile
Chile is one of South America’s star economies, but securing competitive power supplies has long been its Achilles’ heel.
Nature partly explains Chile’s energy difficulties. The country is almost alone in South America in lacking significant oil and gas reserves. Meanwhile, hydroelectric reserves have been drained by a severe drought now running in its fifth year.
But there are also human explanations. A rise in environmental activism has made building new generation capacity much more difficult, especially for coal and hydroelectric projects. Just last year, ministers blocked an unpopular proposal to dam two rivers in Chilean Patagonia.
As a result, marginal costs have been rising, from less than US$30/MWh a decade ago before Argentina turned off cheap gas supplies, to over US$200/MWh in the worst of the recent …

Click here : Log In To Read The Full Story
Subscribe to latin trade magazine
Click here to begin a subscription for Latin Trade magazine, available both in print and online.
Subscribe to lt.com
Click here to begin an online subscription to LT.com, with its extensive ranking, indices, and market intelligence on Latin America.
Subscribe to free Newsletter
Subscribe here to our free newsletter – getting the latest business headlines from Latin America in your inbox every day.
LOGIN
FOR READ MORE LOGIN
LOGIN
LOGIN
Forgot your password
SEND
READ MORE
Aenean sollicitudin, lorem quis bibendum auctor, nisi elit consequat ipsum, nec sagittis sem nibh id elit. Duis sed odio sit amet nibh vulputate cursus a sit amet mauris. Morbi accumsan ipsum velit. Nam nec tellus a odio tincidunt auctor a ornare odio. Sed non mauris vitae erat consequat auctor eu in elit.Aenean sollicitudin, lorem quis bibendum auctor, nisi elit consequat ipsum, nec sagittis sem nibh id elit. Duis sed odio sit amet nibh vulputate cursus a sit amet mauris. Morbi accumsan ipsum velit. Nam nec tellus a odio tincidunt auctor a ornare odio. Sed non mauris vitae erat consequat auctor eu in elit.
Read the current issue of Latin Trade Magazine

Access Denied

Please log in or register

Read Our Latest Issue

latintrade-followus-spanish
FOLLOW US