Regional alliance could lessen energy woes

Representatives of five South American countries are in Chile for negotiations over a possible energy alliance. A feasibility study will be conducted next year in order to see if Chile, Peru, Colombia, Ecuador and Bolivia could unite to form a regional electricity grid.

The potential benefits of such a union could be great according to one official:

Peruvian Deputy Energy Minister Pedro Gamio explained, "When it's raining in one country, it could be very dry in another."

He added Peru's potential for its water resources to produce 60,000 megawatts of energy is untapped since it could only develop 5 percent of the hydro resources. By having an interconnection, it could expand their potential market and attract more investors on the power venture.

Sources- Business News Americas, Reuters UK, AHN

Image- The Berkeley Lab View