Brazil to export electricity to Argentina, Uruguay

Brazilian Energy and Mining Minister Dilma Roussef denied that the energy export might affect domestic supply. She made it clear the government would use surplus for this aim.

She added that the technicians of the three countries were studying all the aspects of the process as even though it is a routine to send energy from Argentina to Brazil, the inverse process is completely new.

As a consequence of 0.2 percent economic slump in 2003, Brazil now has excessive energy supply while Argentina needs more electricity because its gross domestic product (GDP) jumped 8 percent in the same year.

Brazil's energy export capacity stood at 2,000 megawatts, but the three nations decided to begin with smaller volumes, said Roussef. Argentina will purchase 300 megawatts and Uruguay 70 megawatts.

Roussef added that it was normal to set up mechanism for electricity transfer between the countries in economic blocs, like the Common Market of the South (Mercosur) which comprises Brazil, Argentina, Uruguay and Paraguay.