Is South America set for huge energy crisis?

South America Energy Crisis

As the US gets carried away with developing its renewable energy projects to secure a clean and safe energy future, its easy to forget that the continent beneath us is has a far less promising future.

The recent blackout in Brazil shed some light on South America's energy problems, but the 60 million people plunged into darkness is a mere drop in the ocean as countries across the continent have encountered similar problems for many years. In some countries, like Venezuela and Ecuador, blackouts have become increasingly regular.

There are now serious concerns that the region is about to enter a critical energy crisis.

The Brazilian authorities blamed the huge power cut, that affected many of its biggest cities including Sao Paolo and Rio de Janiero, on a severe weather storm which hit transmission lines that carry power from the hydroelectric Itaipu dam that sits on Brazil's border with Paraguay.

Unsurprisingly, this freak electricity cut attracted global coverage but many reports failed to acknowledge that in Neighboring Venezuela, almost all provinces have experienced blackouts pretty much every day in the weeks leading up to the Brazil crisis.

There is a troubling pattern spreading across South America

The introvert nature of some South American countries means that much of their power problems go unreported in much of the world, but the fact remains that a troubling pattern is spreading across a continent so rich in natural resources that the problem should never even exist.

Countries like Venezuela and Ecuador are blaming the globe's climate problems after experiencing their worst droughts in 40 years, slashing water levels at some vitally important hydro-electric plants. This, coupled with a huge surge in energy consumption in all countries in South America, is putting a great deal of pressure on the region's energy sources.

As reported by the BBC Venezuela has seen a 40 percent increase in demand for energy in the last 10 years. Hugo Chavez was critical of the way his fellow countrymen used resources. "Some people stay in the shower singing for at least 30 minutes. Three minutes is more than enough," said Mr Chavez.

"One minute to get wet, another to put the soap on and the third to take it off. Anymore time than this is a waste."

Blaming global warming is the easy way out

The problem with so much coverage being given to global warming is that it gives world leaders the perfect opportunity to let climate change take the rap for their own failings. For example Daniel Montamat, a former Minister of Energy in Argentina, is in no doubt that "it is the result of a lack of planning long term in the energy sector".

He added, "To think that the current power cuts are related to the weather would ignore the needed socio-economic improvements that force us to adapt and improve our life conditions."

The only way to solve the region's energy problems is to invest. The Regional Commission of Energy Integration, which includes public and private companies, estimates that Latin America needs to spend about US$10 billion in the next decade to be able to supply 100 million people who have no access to electricity.

But in the wake of the worst global recession in living memory large investments have become the first casualty of governments looking to tighten their belts.

Greater cooperation between governments

But South America needs to become more self-sufficient as a region and ensure all nations become more integrated and cooperative in their efforts to ensure energy security.

And there are steps being taken to make this a reality. In Bolivia for instance, the gas sector has been nationalized and the price of its energy exports have been increased, a move which has significantly improved relations with Brazil and Argentina who import supplies from them.

Diversification of energy sources are also key. According to the BBC, in some countries, such as Argentina, Mexico and Brazil, nuclear plants generate electricity to meet a few percent of their needs, and there are plans or discussions about increasing the number of nuclear plants.

Investments in renewable as well as traditional energy will also be vital, but this needs private investment as well as government funding in order to make a difference.

But until a comprehensive future energy policy widespread cooperation between all South American nations is reached, it will be some time before frequent power cuts across the continent are confined to the past.

Related Articles:

US climate targets | Are US utilities behind Bolivian carbon offset scam? | US: Carbon capture in a decade?

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