In fact, all four MERCOSUR countries are already connected by power grids. “We need the systems to exchange electricity and assisting each other. For that we already have sufficient capabilities, which we are using now only on a one-quarter basis”, the expert commented.

Operating the systems at such macro-regional level requires, first of all, a dedicated legal framework. “In order for each operator in our countries to make clear, straight-forward and correct decisions based on the energy generation capabilities or on the demand for electricity in every country. The clear-cut rules of the game are the key factor for creating the regional system of electricity exchange”, Casaravilla said at the conference.

Creating the common energy system and the legal framework for its operations will allow for significant drop in electricity costs for the citizens. 

“Let us assume, that if in one country electricity generation is more expensive compared to its neighbour country, there is a need for electricity exchange or for direct supplies from the neighbouring countries in order for the citizens not to overpay”, the expert explained. “I am convinced that we will make such interaction of our countries happen”, he summarised.

MERCOSUR countries are sharing several hydro power plants, e.g, Yasyreta HPP is managed jointly by Argentina and Paraguay, Salto Grande HPP – by Argentina and Uruguay. The most prominent example is the second biggest HPP at the Parana River supplying electricity to Brazil and Paraguay. Until recently, these countries were arguing about the tariffs for the supplied energy.