Scaling up energy integration in South America based on lessons learned from binational hydropower plants

Abstract

In 1973, two noteworthy bilateral treaties (ITAIPU and YACYRETA) were signed between South American countries for the use of part of the shared hydroelectric potential in the Paraná River Basin. The international negotiations presented complexities of various kinds and resulted in an asymmetrical situation between Paraguay, Argentina and Brazil. The negotiations continued during the construction and operation of the power plants, seeking, at first, to improve the positions of the country that was initially more vulnerable in the negotiations and, above all, making viable these large projects that implemented the state of the art technologies for hydropower plants and electrical transmission. The systematization of experiences in the negotiations can be used to advance with the regional electrical integration, given that there is still a high hydropower potential to be harnessed in the great Rio de la Plata Basin. This potential is shared by countries of the basin and its optimal use may be the basis of a significant integration of national power systems and markets. Thus, the main objective of this project is to systematize the lessons learned in international negotiation processes, with a view to providing elements for future decision making in the area of regional integration processes and initiatives. Methods of geopolitical analysis and techniques of identification and organization of lessons learned were applied to meet the mentioned objective. The results can be classified into: i) strategic decision making; ii) strategy planning; iii) implementation of strategies; iv) monitoring and evaluation of strategies and results; and v) communications and social participation. From the analysis of these lessons learned was possible to elaborate a proposal about how to organize, at national level, the international negotiation.