The Latin American and Caribbean region has one of the cleanest electricity matrices in the world, with 60% of renewable generation (hydro, solar, wind), but only exchanges 15% of its electricity between countries, well below other integrated regions such as the EU (35%). This fragmentation increases operating costs and limits the compensation of climate variability (e.g., droughts in Brazil vs. wind surpluses in Argentina).
The main obstacle is not technical, but political. Electricity integration in South America is characterized by bilaterality, with treaties that coordinate national policies and interconnection commitments. Although various initiatives for subregional integration have been promoted, progress in policies and regulatory frameworks has been limited. Independent regulatory bodies such as the Andean Community of Nations (CAN) and the Southern Common Market (MERCOSUR), seek to harmonize regulations and establish mechanisms for conflict resolution and infrastructure operation.
The increase in renewable energy poses technical, economic, and regulatory challenges that planners must consider. Can the rest of the region replicate SIEPAC's success?
