Secretaría Ejecutiva:

Blvr. Gral. Artigas 1040

11300 Montevideo – Uruguay
Tel.: (+598-2) 709 0611 * COMISIÓN DE INTEGRACIÓN
Fax: (+598-2) 708 3193
E-Mail: secier@cier.org.uy
ENERGÉTICA REGIONAL
Internet: www.cier.org.uy

CIER Region Electrical Sector and Climate Change

Position Paper

The purpose of this document is to present a view of the electrical sector of the CIER Region in
terms of its main aspects related to Climate Change. It involves points on which there is
general consensus among the CIER National Committees and the CIER Regional Committee
for Central America and the Caribbean.

The Argentine National Committee (CACIER), Bolivian National Committee (BOCIER),

Brazilian National Committee (BRACIER), Colombian National Committee (COCIER), Chilean
National Committee (CHICIER), Ecuadorean National Committee (ECUACIER), Paraguayan
National Committee (PACIER), Peruvian National Committee (PECIER), Uruguayan National
Committee (CUCIER), Venezuelan National Committee (VECIER), CIER Regional Committee
for Central America and the Caribbean (CECACIER) and Associate Member – UNESA –
Spain, group 237 companies, institutions and entities of the electrical sector of South America,
Central America, the Caribbean and Spain.

The objective of this Position Paper is to cooperate with company authorities, international
institutions, sector government agencies and institutions and officers in the negotiations and
discussions to be held at the next Convention of Parties (COP 16), Cancún, Mexico. The last
meeting, COP 15, and the next one, COP16, must feature concrete and significant progress
allowing world agreement to be achieved that will enable an increase in world average
temperature to be limited to a maximum of 2ºC by the end of the 21st century, compared to the
pre-industrial era. To do this, scientists and environmentalists argue that the global emissions
of greenhouse effect gases (GHE) must be reduced by 40% at least by 2020, taking as a
reference 1990 levels.

The energy sector is extremely important in terms of Climate Change, since the production and
use of energy amounted to 76% of all emissions of the planet in the year 2000. From this
percentage, electricity and heating are responsible for 41%. Insofar as the CIER region is
concerned, our last study1 revealed that the dominant source in the region is hydroelectric
energy with an installed capacity of approximately 145 GW, equivalent to 20% of the world
total, and a potential of 594 GW of hydraulic power of which we have only developed 25%; in
turn there is also a wind power potential of approximately 350 GW. Our hydraulic capacity
allows us, differently from European countries where fluctuations in wind power require the
installation of thermoelectric generation plants as a backup, to use dams as regulators of wind
production and biomass variations. The dams of hydroelectric plants work as energy reservoirs
that store not only water but also wind and biomass power. On the basis of simulated reference
scenarios to 2017, CIER Project 15 quantifies as 58% the participation of total non emitting
sources in the production of electric energy in South and Central America (hydroelectricity 50%,
non conventional renewable energies and nuclear power 8%), which would indicate one of the
cleanest matrices of electric energy generation in the world.
.
We show below the points regarding which there is agreement between National and Regional
CIER Committees. In a technical annex we provide an executive summary of the CIER 15
1
CIER Project 15
U 47133088.doc

Fundada el 10 de julio de 1964. Organización Internacional sin fines de lucro que reúne a Empresas y Organismos del sector energético de los países de
América del Sur, América Central y El Caribe, así como Miembros Asociados de Europa.

Sus objetivos son: promover y favorecer la integración del sector eléctrico en la región; desarrollar actividades de cooperación técnica; intercambiar informaciones,
conocimientos y experiencias entre sus miembros.
Secretaría Ejecutiva:
Blvr. Gral. Artigas 1040
11300 Montevideo – Uruguay
Tel.: (+598-2) 709 0611 * COMISIÓN DE INTEGRACIÓN
Fax: (+598-2) 708 3193
E-Mail: secier@cier.org.uy
ENERGÉTICA REGIONAL
Internet: www.cier.org.uy

Project – Energy Transactions between the Andean, Central American and Southern Cone
Systems – Feasibility of their Integration.

Points of consensus:

1. At present, the increase in the temperature of the planet is considered to be the greatest
challenge nations face and requires joint actions to address it effectively. In that which
concerns possible direct impacts, we find extreme climate events such as hurricanes,
typhoons, storms, desertification and rise in the sea level. These effects, when they occur,
have the most drastic consequences for the poor, who tend to migrate in greater numbers,
something which requires not only well designed measures to mitigate the emissions of
greenhouse effect gases but also to adapt to economic, social and environmental impacts.

2. Our countries must take part in the search for balanced agreements in the COP meetings,
with the constructive participation of all parties, so that we are all effective in the search for
a new form of development based on low carbon economies, keeping in mind that this
development should take into account the strong points and failings of each country.

3. We support the adoption of voluntary and adequate actions, without abandoning the
principle of common but differentiated responsibilities between developed and developing
countries. The counterpart would be mitigation mechanisms, such as NAMAs (Nationally
Appropriate Mitigation Actions), to be undertaken by developing countries as part of the
global effort to combat climate change, with the corresponding counterpart of financial
resources and technology transfer from the developed countries. However, the negotiations
must keep in mind the need for clarity regarding measurement, reporting and verification
(MRV) and what penalties are to be established. Different mechanisms are required for
developed countries which have binding objectives and the developing countries which
must take on quantifiable voluntary commitments.

4. The discussion of the “REDD” (Reduction of Emissions by Deforestation and Degradation

of Forests) type mechanisms, provides an opportunity to introduce new values in the
mechanisms proposed to reduce emissions of greenhouse effect gases. The mechanisms
have focused on emissions avoided, a focus which is most adequate for industry and,
therefore, for the initiatives in industrialized countries. The adoption of this focus to any
problem means not to recognize the fundamental values in other activities such as forest
conservation and how to manage sustainable forests. Therefore, it is suggested that,
besides the undeniable value of promoting the improvement of practices, it is
acknowledged as necessary that good practices be promoted to a new value in the struggle
against global warming. With this focus it is suggested that efforts to negotiate in order to
carry out forestation and reforestation projects undertaken by the electricity sector are
considered valid actions regarding claims upon the financial mechanisms for development.

5. The effort made by the electrical sector of the countries of the CIER region, in having
developed a power matrix based on renewable sources, must be acknowledged concerning
electric energy. Contrary to the developed countries where, in general, the energy sector is
mainly responsible for the emissions of greenhouse effect gases (GHE), the electric matrix
of our countries is one of the cleanest in the world. The electrical sector projects2 relatively
low emissions (CO2/GWh), something with contrasts with the history of emissions in

2
Proyecto CIER 15
U 47133088.doc

Fundada el 10 de julio de 1964. Organización Internacional sin fines de lucro que reúne a Empresas y Organismos del sector energético de los países de
América del Sur, América Central y El Caribe, así como Miembros Asociados de Europa.

Sus objetivos son: promover y favorecer la integración del sector eléctrico en la región; desarrollar actividades de cooperación técnica; intercambiar informaciones,
conocimientos y experiencias entre sus miembros.
Secretaría Ejecutiva:
Blvr. Gral. Artigas 1040
11300 Montevideo – Uruguay
Tel.: (+598-2) 709 0611 * COMISIÓN DE INTEGRACIÓN
Fax: (+598-2) 708 3193
E-Mail: secier@cier.org.uy
ENERGÉTICA REGIONAL
Internet: www.cier.org.uy

general in the developing countries. Therefore, the region has a “historical environmental
credit,” in contrast to the “historical responsibility” of the developed countries for the great
emissions of the past. The negotiations should take advantage of these comparative
advantages of the region.

6. The increase in the temperature of the planet may affect agriculture, livestock, public
services negatively, as well as in large measure the services related to the operation of the
electrical system, including distribution, transmission and generation. Facilities in general
may be affected significantly by the impacts of extreme climate events which, associated
with possible variations in hydraulic flows, are of great concern from the point of view of the
security of electrical supply in the region. In this sense, projects like HIDROCIER (CIER
Project 05), whose objective is the study of the impact of extreme hydrometeorological
conditions on the reliability of energy supply and the development of a network of hydraulic
energy information in the South American region, receive the financial and technological
support needed for their implementation. Furthermore, it would seem convenient and to the
benefit of all the Parties, to analyze a manner of regional coordination between the sector
government agencies, systems’ operators and Ministries, to allow them to treat these
impacts on the basis of studies that go into greater depth regarding climate effects in the
electrical energy sector and that should later become adequate actions.

7. CIER project 15, recently undertaken by our agency, indicates in the Energy Potential
Study Module that the region is “quite clean” in terms of GHE emissions and that the
expansion axes of our capacity for generation, that will contribute to the achievement of
GHE emission reduction targets, are hydroelectricity, thermal generation based on natural
gas – with the alternative of Liquid Natural Gas (LNG) to the construction of gas ducts -,
and non conventional renewable energies (NCRE). We therefore consider necessary some
actions that, if not carried out, make it difficult for us to attain the objective of maintaining
global warming under control. We suggest support be given to the following measures:

a. Have prospective hydrological studies go into greater depth, considering the climate
variable in a systemized manner, since the studies show a trend towards greater
variability of future hydraulic flows. For example, the effect of increasing temperature
in the planet requires a decisive advance towards the development of and access to
simulation models that allow the effects of the increase and reduction of primary
resources for electric energy generation to be visualized. To do this it is necessary
to intensify cooperation and technology transfer within regions and from outside the
regions to our countries and electric sector.
b. Promote a better understanding of the benefits of hydroelectric power stations and
other sources of renewable energy, such as wind, biomass, as well as the
thermonuclear source which, although not considered renewable, is a non emitting
source. This is why, paradoxically, at the same time as they may be the basis for
regional energy security and maintenance of a clean matrix, power generation
projects that use these sources are perceived to be negative for the environment
and the population affected, and enormous difficulties have to be faced for
concession of environmental licenses.
c. Study the role of dams in the reduction of possible impacts produced by climate
change on the behavior of water (floods and droughts). Planning must try to
optimize the hydraulic potential still available, keeping in mind the possible changes
U 47133088.doc

Fundada el 10 de julio de 1964. Organización Internacional sin fines de lucro que reúne a Empresas y Organismos del sector energético de los países de
América del Sur, América Central y El Caribe, así como Miembros Asociados de Europa.

Sus objetivos son: promover y favorecer la integración del sector eléctrico en la región; desarrollar actividades de cooperación técnica; intercambiar informaciones,
conocimientos y experiencias entre sus miembros.
Secretaría Ejecutiva:
Blvr. Gral. Artigas 1040
11300 Montevideo – Uruguay
Tel.: (+598-2) 709 0611 * COMISIÓN DE INTEGRACIÓN
Fax: (+598-2) 708 3193
E-Mail: secier@cier.org.uy
ENERGÉTICA REGIONAL
Internet: www.cier.org.uy

in the behavior of rivers. The existence of dams, as well as allowing a greater

potential of renewable generation, may help to control floods and droughts, which
may be aggravated by global warming.
d. Improve regulation and clearly delimit competencies when awarding environmental
licenses.
e. We support mitigation mechanisms of the NAMAs type, that allow emission
reduction commitments taken on by countries to have as their counterpart the
effective access of all sources, both renewable and non emitting, to resources that
are made available. Besides this, the other counterpart measure envisaged by the
NAMAs is technology transfer, in such a way that the negotiations must also seek
external credits and other schemes that allow the transfer of clean technologies for
the remainder of the heat sources, including the capture of CO2 – CCS (Carbon
Capture and Storage ), with the purpose of converting them into non emitters.
f. Support a favorable regulatory framework for the development of the Non
Conventional Renewable Energies (NCRE) and participation of the electric sector in
the mitigation measures appropriate for each country (NAMAs). As regards the
NAMAs, they are understood to include the great hydroelectric projects.
g. Treat the emissions of thermoelectric stations as complementary to the generation
matrix of the countries of the CIER region, indispensable for energy security and
lying within the concept of “Historical Environmental Credit,” focusing rather on the
incentives for clean technology transfer, as was stated in the previous paragraph,
than on penalizing emissions, while the sector plans a way to minimize the operating
periods of the thermoelectric facilities. Besides this, the greater availability of
renewable and nuclear (non emitting) sources would minimize the thermoelectric
emissions even more.
h. The negotiations must avoid making commitments that result in electric energy rate
increases to consumers of the CIER region. They must benefit from the fact that the
region has made a great effort in important investments in renewable sources and
therefore has a clean matrix. Access to electric services must be guaranteed to all
and be at moderate prices because this insures the social inclusion and
competitiveness of the products and services of the region.
i. Anyway, if commitments arise they must be able to count on the financial support
and transfer of technology of the developed countries in order that electricity supply
may be made available at affordable and reasonable prices.
8. The electric sector, conscious of its main role in promoting the conditions that favor the
sustainable expansion of the infrastructure needed for the development of the region,
introduces the following actions to be implemented with reference to climate change:
a. Development of a reliable emission inventory featuring, if possible, a comprehensive
approach to the value chain.
b. Broadening of conservation and efficient use of energy programs.
c. Promotion of scientific research and education by public agencies, thus encouraging
the production of scientific works, recovering historical data and training teachers in
the areas related to the study of climate change. The region has a small fraction of
what it needs in numbers of scientists, engineers, researchers, universities and
Research and Development R&D budget.
U 47133088.doc

Fundada el 10 de julio de 1964. Organización Internacional sin fines de lucro que reúne a Empresas y Organismos del sector energético de los países de
América del Sur, América Central y El Caribe, así como Miembros Asociados de Europa.

Sus objetivos son: promover y favorecer la integración del sector eléctrico en la región; desarrollar actividades de cooperación técnica; intercambiar informaciones,
conocimientos y experiencias entre sus miembros.
Secretaría Ejecutiva:
Blvr. Gral. Artigas 1040
11300 Montevideo – Uruguay
Tel.: (+598-2) 709 0611 * COMISIÓN DE INTEGRACIÓN
Fax: (+598-2) 708 3193
E-Mail: secier@cier.org.uy
ENERGÉTICA REGIONAL
Internet: www.cier.org.uy

d. Development of studies on anthropogenic emissions of greenhouse effect gases by

the dams of hydroelectric plants; evaluation of gross and net emissions of
greenhouse effect gases of the said dams, to reduce the uncertainty that surrounds
the question of GHE emissions by the dams of hydraulic plants, as well as the
causes of these emissions (such as obtaining field data that allows a coherent and
conclusive scientific analysis). This is because there is as yet no validated
methodology that permits consideration of results in a definitive manner.
9. Advocate for the continuity and improvement of the Flexible Mechanisms provided for in the
Kyoto Protocol, especially the Clean Development Mechanism (CDM) that is considered
beneficial for the countries of the CIER region. The CIER expectation for the Conference of
Parties (COP 16), to be held in Mexico, is that there may be a second phase of the Kyoto
Protocol, and that its rules may incorporate important improvements in the approval
process of the CDM projects, as, for instance, its process, agility and transaction cost
reductions.
10. Lastly, based on the CIER 15 Project there is consensus in our institution that the projects
of international interconnections and the increase of international electric energy
transactions generate significant environmental benefits in terms of GHE reduction. The
CIER 15 Project identified 12 projects of the region of Mercosur, Andes, and Central
America, that would contribute with an environmental benefit of 7.8 million tons of CO2
avoided per year.
In this sense CIER has a firm expectation that in discussions carried out in the Cancún
COP, and later on, energy integration will be taken into account as a complementary and
indispensable strategic alternative for the safe supply and contribution to the reduction of
GHE, requiring financial resources to improve their study on a technical, commercial and
regulatory level and that the interconnection projects, in turn, will be considered and
included in the mitigation mechanisms of the NAMAs type.

June 4, 2010.

Note: The origin of this position paper was as follows: (a) discussion, themes dealt with and conclusions arising
from the international workshop Mudanças climáticas e o setor elétrico na área de atuação da CIER: Subsídios
para a construção de uma Agenda de Trabalho, organized by the Brazilian National Committee of the CIER
(Bracier), held on May 20, 2010, in Rio de Janeiro; and (b) discussion and conclusions of the working meeting
held by specialists of the CIER Environmental and Electrical Industry Group, on May 21, 2010, Rio de Janeiro.
The contents of the document were based on the following sources: (a) outlines and contents expressed in the
document made available by BRACIER/ELETROBRAS: “Position Paper”: o setor elétrico e as mudanças
climáticas del Forum de Medio Ambiente do Sector Eletrico Brasileño; (b) contributions and concepts provided
by the environmental specialists of CIER who took part in the meeting of the Working Group held on May 21,
2010; and (c) Project CIER 15, such as the energy matrix of the region and its projections, and the
environmental benefits arising from the projects on international interconnections and increase in international
electric energy transactions.

U 47133088.doc

Fundada el 10 de julio de 1964. Organización Internacional sin fines de lucro que reúne a Empresas y Organismos del sector energético de los países de
América del Sur, América Central y El Caribe, así como Miembros Asociados de Europa.

Sus objetivos son: promover y favorecer la integración del sector eléctrico en la región; desarrollar actividades de cooperación técnica; intercambiar informaciones,
conocimientos y experiencias entre sus miembros.