Possible transfer of traditional energy intensive industries towards developing countries. Offers of energy resource in the CIER [Comision de Integracion Electrica Regional] area in relation to this transfer

Due to the steep rise in oil prices in the early 1970s, South American countries became aware of the advisability of developing their abundant and renewable hydroelectric resources. The second energy crisis of 1979 pushed up oil prices still further and the consequences in the South American electricity sector included contractions in markets, overcapacity, and difficult financial circumstances. Increases in exports were seen as a way to reduce the burden of those countries' heavy debts and to improve economic conditions. To harmonize the interests of development of highly energy intensive industries in developed countries and the economic development of developing countries, the possibility of marketing energy as an industrial input should be considered. Evidence of the advantages that South American countries can offer to such industrial transfers is presented. These countries offer a source of plentiful hydropower from installations in operation, under construction, or projected as major developments. These installations are already largely interconnected through high- and extra-high-voltage power transmission networks. Technical information is given on the installed generating capacities, including thermal reserve plants; utilization levels; transmission line interconnections; and remaining renewable and non-renewable energy resources. Considerations regarding the political and financial implications of industrial transfers are discussed. 6 refs., 9 figs