A delicate balance in South America. http://dx.doi.org/10.1109/MPE.2008.924813

Abstract

The article centers on the primary challenge faced by South American countries, which is to ensure sufficient capacity and investment in electricity infrastructure to serve reliably their growing economies, currently faced with shortages and high prices. Within those conditions, the development of vast unexploited hydroelectric resources, particularly in Brazil, is at the center of attention, where its renewable character is being
confronted with its environmental impact. The article indicates that hydro will continue to be the main source of electric energy in South America for the near future, along with coal and natural gas, but the development of new hydroelectrical plants is facing diverse challenges. They are not technical restrictions, as hydro expertise has been in the region long enough to make it a mature technology. The challenges of hydro development in the region arise in the development of more distant hydro (increasing transmission costs), the financing of major investments and, particularly, in controlling the impact on the environment.