PERSPECTIVES FOR INTERBLOCK ENERGY INTEGRATION: MERCOSUR AND EU

Abstract

Technological changes that have occurred in the last twenty years has provoked many importants changes in people life. By the way, the international political relations take on new forms, in which an attempt to act in regional blocks isn´t sufficient anymore for a world whose global connection is inevitable and mandatory. Therefore, it is opportune to search for interbloc action, in a coordinated or integrated way, since multilateral action is still improbable in a world with great socio-benefit and cultural-ideological differences. In order to analyse an inter-block economic schedule, the relationship between MERCOSUR and the European Union looks interesting and promising. In this context, the energy sector, which particularly involves the electricity and fuel sectors, is gaining prominence, which, considered as aforementioned technological innovations, begins to show signs of future viability, even though it is necessary to comply with steps for its development. An inter-block integration is restricted in the scope of the electric sector, considering that it requires the structure of physical networks for the operation of the respective system - generation, transmission and distribution - and that the distance that separates the blocks is great. However, there is an interest in leveraging inter-block fuel trade, as well as capital goods and other inputs in the electricity sector, and the establishment of an inter-block agreement that favors this trade may contribute to the beginning of expanded inter-block energy integration. The way of promoting this trade can occur through the establishment of a Free Trade Zone between the blocks, which includes specific incentives to the electricity and fuel sectors. From a discussion under the focus of public policies, and considering the available technology, this would be the best form of energy integration between the MERCOSUR and European Union blocks.