AUGUST 2009
Insights From the Field
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Insights From the Field 

IN THIS ISSUE

The future of nuclear power in Latin America.
By Irma Argüello.

Brazil´s enviable energy matrix: A Q&A with a Rio de Janiero-based energy expert Dr. Roberto Schaeffer.
By Janie Hulse.

Muddy waters; the revival of the Chile-Perú maritime dispute.
By Alan Hootnick.

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EDITOR�S NOTES
 
DURING THE FIFTH SUMMIT OF THE AMERICAS in April, hemispheric leaders gave priority to efforts to ensure energy security, to promote alternative energy resources and to confront the effects of global climate change. In a modest effort to contribute to the aim of increased hemispheric energy cooperation, this second edition of Insights From The Field provides in-field perspectives on regional energy sources, challenges and governmental plans for the future. It also highlights the revival of a centuries-old maritime dispute involving neighbors Chile, Peru and Bolivia.
 
While the first edition was very well received, Insights has already undergone some formatting changes in an effort to improve presentation, highlight summary information and allow for more sophisticated distribution management.
 
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ALL EYES ON ENERGY IN THE AMERICAS
Latin America is a region rich in natural resources at a time when the world is waking up to their increasing scarcity and vulnerability. As governments across the globe begin to accept that fossil fuels are finite, a world-wide quest for alternative energy sources begins. While the current economic crisis has temporarily lessoned demand, prices and investments in expensive alternative energy projects, they remain the future. And, in fact, they are already Brazil's present. This South American giant has gone from energy-dependent to energy self-sufficient thanks in large part to its production of alternative energy sources...
LATIN AMERICA relies on hydropower and fossil fuels as its main sources of electrical energy. Nuclear power in terms of total electrical generation is exiguous at about 2% and is concentrated in only three countries: Argentina, Brazil, and Mexico. Nonetheless, plans to expand nuclear capabilities in these countries have been announced, and other regional governments are considering the alternative of nuclear energy to meet their growing electricity needs. The present global scenario also opens an opportunity for the region to carry out a progressive and ordered diversification of its current electrical power sources. Realistic goals must be set to control the inherent nuclear risks - safety, security, and proliferation- which a rushed expansion could exacerbate.
BRAZIL is a subject of great interest today among international practitioners and scholars alike thanks to its economic success and growing international influence. Brazil's achievements in the energy domain are also partly responsible for this international attention and respect. As world governments begin to consider the advantages of going green, renewable energies already account for 46% of Brazil's internal energy consumption (while OECD countries' average is about 5%). Moreover, Brazil has recently discovered significant natural gas reserves and several billion barrels of crude off its coasts and is advancing quickly to expand its nuclear power capabilities. From the outside, it seems like a perfect mix. This interview with Rio de Janeiro-based energy expert Roberto Schaeffer, however, reveals some of the vulnerabilities of Brazil's current energy matrix and shows why the strategic move toward more nuclear power is not necessarily embraced by Brazilian technical experts who are pushing for more environmentally sound and cost-effective power sources.

 
A NEARLY FORGOTTEN maritime dispute between Chile and Peru along the pacific coast of South America is once again receiving some international attention. A 1929 treaty signed between the two countries 50 years after all out war makes the United States the principal arbiter in the case of conflict. To date, no party has invoked the arbitration clause despite tensions over the last few decades. In 2005, the Peruvian congress unilaterally imposed maritime limits asserting sovereignty over 65,000 sq.km. of waters which Chile claims is theirs. In 2009, Chile brought the case to the international court of justice at The Hague. Bolivia's interest in access to the sea that it lost in the 1879 naval battle adds an added dimension to a dispute that is largely owed to unclear delineation and language in past treaties. Should these Southern Cone countries fail to reach an agreement, this article should serve US policymakers who may be called on to navigate very muddy waters.
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Insights From the Field

Janie Hulse Najenson
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