Uruguay is Receiving Free HydroElectric Power from Brazil This Winter– Altruistic Gesture or Ugly Bargain?

Several weeks ago, the International Herald Tribune reported that Brazil will lend some hydroelectric power to its neighboring country of Uruguay during July and August of this year, the coldest months of South America’s winter. Uruguay, like many South American countries, is currently struggling to meet its energy needs.

Under the arrangement, Uruguay will begin to pay back the energy to Brazil once the winter demand for electrical heating ends. For the past four years, similar arrangements have been made. Brazil is currently in negotiations with Uruguay to build a coal-powered thermoelectric plant near where the countries border. I can’t quite put my finger on why, but I find this rather simple news story intriguing.

• » See also: #3 Portland, Oregon (USA): Great Bicycle City Photo Tour
• » Get EcoWorldly by RSS or sign up by email.

I wonder if Brazil is actually quite kind in their willingness to help a neighbor, or if they just want to use these energy loans as a way to take advantage of Uruguay. Perhaps that want to gain negotiating leverage in regard to the thermoelectric plant. Any one have any perspective or information about the issue? Does anyone know of any other occurrences of one country providing loaned energy to another? In other words, I’m asking about an exchange of energy, rather than a financial transaction.

Photo Credit: ogwen on Flickr under a Creative Commons license

Tweet This Post