MAG #6 - Page 22

The present situation of global energy faces an important change, practically, in all aspects. The emission of gas pollutions, the lack of recources, and the density and expantion of populations, are some of the (major) factors that provoke energy revolution in terms of production and advantage taking of energy. The latter has drived the uses of the renewable and non-conventional renewable sources (NRSE) with the intention to employ different forms of energy in a sustainable manner and with minor possible impacts to the world and to the ecosystem. (1)

In this context, the International Law of Energy (ILE) has new challenges to provide global and regional solutions to common problems. The electrical interconection and the role of NSRE is one of the answers.

The EU permits the operation of the system and the market, joint together as public or private organism or as two different organisms, also as public or private rights. The focus of European legislation is held in to the system operator, which manages the electricity system and ensures the third party access to networks, simulating a situation of competition, for this activity being monopolistic in nature. (2)

In addition, EU promotes the coordination between various operators and market system, in order to make further progress in consolidating the internal market. As for the regulator, EU boosts the existence of an independent technical regulator, that performs similar functions to the Chilean CNE. Thereafter, an independent and technical regulator become a new form of administrative action, that is typical during the era of liberalization of key economic sectors. (3)

The liberalization of the electricity market in the EU covers several areas: such as legislative, market changes and structure by itself, and even more specific on progress in reducing emissions (4). However, it is being acknowledged that there is still no clear meaning and direction to the outcome of those initiatives (5).

The european energy security, is currently going through a complex political scenario.

As we discussed in the first chapter, concerning the supply of gas from Russia to Europe and the conflict between Nabucco versus South Stream, this situation is exacerbated by the Russia vs. Ukraine conflict, taking into account that the 15% of the gas used in the EU passes through this country (6), leaving it vulnerable to the political game of the Kremlin, because the EU imports 66% of its gas consumption, and Russian gas represents the 39% of that supply. But the issue of energy security is also a global challenge present in the states such as the United States of America, raising global challenges and common liabilities in transition to a more sustainable energy model (7).

For a complete comprehension of ILE interconnection, we must consider the technology, economical incentives, energy policy, ant latest developments in gas, electricity, oil (v.gr. Shell Gas -Vaca Muerta, Argentina-), and shadow prices. At least in South America, exists a diverse initiatives that set the possibility of a regional-wide energy network (i.e. gas, electricity, among others), based on the capacity benefits that could bring forth for the entire region. As an example, the implementation of the new technologies, non-conventional renewable energies are usually costly; the idea of an interconnected system on continental level, aspires to form the competence on different levels of the electricity market, thereby reducing prices on its various services. (8).

In case of Chile, particularly the condition of the northern part of the country, there exists what we can call, an “exportable insolation,” it has the capacity of a 10% energy supplies for the entire south america, complying accordingly with the international liabilities on emission reductions and sustainable relations with the indigenous communities, such as the determinants of the countries of Brazil or Paraguay, that is linking geographically to the hydroelectric potential. (9)

The present situation of global energy faces an important change, practically, in all aspects.