Energy Security in South America

This 2010 report by the International Institute for Sustainable Development examines the challenges and opportunities for energy security and integration in South America, focusing on the pivotal role of Brazil. The author argues that while the region possesses vast energy resources, national regulations and a lack of multilateral frameworks create insecurity and underutilization of low-cost resources. The report proposes a Multilateral Energy Security Reserve (RMSE) treaty to stabilize supply and suggests that Brazil's market size and leadership in renewables make it the ideal coordinator for a secure, competitive regional energy market.

• South American countries struggle to guarantee energy security for consumers despite having vast renewable and non-renewable resources, leading to common occurrences of energy rationing in countries such as Venezuela and Argentina.
• Regional energy integration offers significant economic efficiency gains, including an estimated saving of USD 529 million in operational costs for electricity markets in 2010. These gains stem from hydrological diversity in river basins and varying national load curves, which allow for cooperative hydropower generation and reduced installed capacity requirements.
• Energy integration in South America has shifted from an 'institutions-market approach' based on bilateral agreements in the 1990s back to an 'empire-regions approach' in the 21st century, where state-owned firms dominate and supply security is used as a geopolitical tool.
• Three primary obstacles hinder regional energy integration: the difficulty of coordinating hydropower plant output across different economic criteria, the complex environmental licensing process for projects in Amazonia, and a legal deficit that discourages private investment in energy generation.
• Brazil is positioned as a key coordinator for South American energy integration due to its geographical location, market size, oil resources, and leadership in renewable energy. The report notes that Brazil is expected to transition from a net energy importer to a substantial exporter of oil by the end of the decade.
• The author proposes the creation of a Multilateral Energy Security Reserve (RMSE) treaty to provide a legal basis for accessing regional energy reserves during supply crises. This treaty would establish pricing mechanisms based on long-term supply costs rather than current domestic market prices to avoid volatility and opportunistic behavior.

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} }