Energy Security in South America

The report argues that while South America possesses vast energy resources, national regulations and a lack of multilateral frameworks prevent countries from achieving adequate energy security. It highlights that the region is well-positioned for a transition to a low-carbon economy but is hindered by a shift from an 'institutions-market' approach to an 'empire-regions' approach, where energy is used as a geopolitical tool. The author proposes the creation of a Multilateral Energy Security Reserve (RMSE) treaty to provide legal and pricing mechanisms for accessing regional reserves during supply crises. Brazil is identified as a key coordinator for this process due to its market size, oil resources, and leadership in renewables. Major obstacles to integration include the coordination of hydropower output, environmental licensing in the Amazon, and a legal deficit affecting private investment.

• South American countries struggle to guarantee energy security for consumers despite having vast resources, leading to frequent energy rationing in countries such as Venezuela and Argentina.
• Regional energy integration could yield significant economic gains; for instance, integrating electricity markets was estimated to save USD 529 million in operational costs alone in 2010.
• The region has shifted from an 'institutions-market' approach, based on economic agreements and multilateral institutions, back to an 'empire-regions' approach where supply security is used as an instrument for geopolitical policy.
• The author proposes a Multilateral Energy Security Reserve (RMSE) treaty to grant countries access to regional energy reserves through established regulations and pricing mechanisms during supply threats.
• Brazil is positioned as a critical leader for regional integration due to its geographical location, market size, oil resources, and expertise in renewable energy.
• Three primary obstacles hinder energy integration: the difficulty of coordinating hydropower plant output, the complexities of environmental licensing (particularly in Amazonia), and a legal deficit that discourages private investment in generation.

APA

de Oliveira, A. (2010). Energy Security in South America. International Institute for Sustainable Development. https://www.iisd.org/system/files/publications/energy_security_south_america.pdf

Chicago

de Oliveira, Adilson. Energy Security in South America. International Institute for Sustainable Development, 2010. https://www.iisd.org/system/files/publications/energy_security_south_america.pdf.

Wikipedia

{{cite report |last1=de Oliveira |first1=Adilson |title=Energy Security in South America |publisher=International Institute for Sustainable Development |date=2010 |url=https://www.iisd.org/system/files/publications/energy_security_south_america.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{deoliveira2010energy, author = {de Oliveira, Adilson}, title = {{Energy Security in South America}}, institution = {International Institute for Sustainable Development}, year = {2010}, url = {https://www.iisd.org/system/files/publications/energy_security_south_america.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }