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Energy Exchanges opens the possibility of expanding trade agreements

Energy Exchanges opens the possibility of expanding trade agreements

Promote energy exchanges within Latin America, assuring the greatest possible direct or indirect access to primary energy sources, such as oil, gas, hydropower and coal, to strengthen the regional market and promote development of participating countries.

Since 2020s Argentina and Uruguay have already bet on operations involving energy exports with Brazil. This type of international energy trade benefits and promote the regional market. However, even if they comply with the basic requirements of the Energy Export Guide developed by Chamber of Electric Energy Commercialization (CCEE), which guarantee the security and integrity of supply in the national market, the procedures are generally not considered as a commercial. So, they have no influence on the Marginal Cost Operations (CMO).

It means that the operations tend to be characterized as an emergency aid operation provided to neighboring countries in a period of energy uncertainty.

To strengthen the regional market and promote development, the Ministry of Mines and Energy opens Public Consultation No. 84.

The text provides na imporvement in the commercial operations and trade facilitation. Thus, it would be possible to provide a more profitable economic environment for energy export operations and guarantee the use of the benefits for the entire chain of the electricity sector.

In any case, energy export operations should be approved by the Ministry of Mines and Energy and  the National Electric Energy Agency (ANEEL), formalized by the Electric Power Import or Export Contract (CIE) and in compliance with the guidelines of the CCEE.

Benefits for the sector

Despite the challenges, there are many benefits for the national market and for the sector. Due to the increase in energy export operations and the creation of a transnational platform for energy commercialization, it would be possible to expand the possibility of international agreements, facilitating exchanges between Latin American countries, which have been taking place for some time.

The Energy team remain available for futher clarifications.

 

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