OEA - CIDI - Resolución CIDI INF 705

INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT

OEA/Ser.W CIDI/INF.705/26 19 March 2026

Original: English

CONCEPT NOTE

REGULAR MEETING OF

INTER-AMERICAN COUNCIL FOR INTEGRAL DEVELOPMENT (CIDI) MARCH 26, 2026 “ENERGY INTEGRATION AND INTERDEPENDENCE: Strengthening Energy Security and Resilience in the Americas”

A. BACKGROUND Energy systems across the Americas are undergoing profound transformation. Latin America and the Caribbean (LAC) already rank among the global leaders in renewable electricity generation, with approximately 69% of electricity produced from renewable sources, a share far above the global average.

Hydropower remains the backbone of the regional power system, representing more than 45% of total electricity generation, while wind and solar are expanding rapidly across multiple countries1 / . Despite these achievements, the energy systems of the Hemisphere remain largely fragmented and insufficiently interconnected. Unlike other regions such as Europe, where integrated electricity markets allow countries to balance supply and demand across borders, the Americas lack a fully integrated regional energy system. Cross-border electricity trade in Latin America represents less than 5% of total regional electricity generation, and when large hydropower exports from Paraguay are excluded, effective trade levels fall to below 1% of regional generation2 / . While electricity grids in several countries across the region are interconnected and subregional energy exchange schemes exist, the only fully integrated multinational electricity market is the Central American Electrical Interconnection System (SIEPAC), which connects six countries through a regional transmission network and a common institutional framework that enables the operation of a shared electricity market. While this system demonstrates the benefits of integration, including improved reliability and reduced vulnerability during local shortages, similar mechanisms do not yet exist across

South America or the Caribbean. In South America, despite the existence of significant physical interconnections and cooperation mechanisms such as developments in the Andean region (SINEA), the Southern Cone (SIESUR), and the Northern Arc in the Caribbean, these initiatives have not resulted in the establishment of a unified regional electricity market, but rather remain largely limited to bilateral exchanges or partial integration schemes.

1 . OLADE (2024). Energy Outlook for Latin America and the Caribbean 2024. Available here: https://www.olade.org/en/publicaciones/energy-outlook-of-latin-america-and-the-caribbean-2024/ 2 . World Bank (2021). How Much Does Latin America Gain from Enhanced Cross-Border Electricity Trade? https://documents.worldbank.org/en/publication/documentsreports/documentdetail/7564216231735882572 This limited level of regional integration constrains the ability of countries to benefit from one of the Hemisphere’s greatest strategic advantages: the geographic diversity and complementarity of energy resources. The Americas possess abundant and diverse energy potential. Solar resources are particularly strong in northern Mexico, the Caribbean, and the Atacama Desert in Chile; wind resources are among the best in the world in Patagonia, northeastern Brazil, Uruguay. and parts of Mexico; and hydropower reservoirs in Brazil, Colombia, and the Andean region provide large-scale dispatchable capacity capable of balancing variable renewable generation. The abundant renewables combined with natural gas reserves make possible clean electricity throughout much of the hemisphere. If interconnected through regional transmission infrastructure and coordinated electricity markets, these complementary resources could significantly improve system flexibility and resilience. Integrated regional systems therefore allow countries to balance variability across technologies and geographies, reducing system costs while increasing reliability. The absence of strong regional interconnections also limits the ability of countries to respond

collectively to external energy crises. Recent global energy disruptions, including fuel price volatility, supply chain instability, and geopolitical tensions, have highlighted the vulnerability of isolated national energy systems. Strengthening regional cooperation and cross-border energy infrastructure can help countries mitigate these risks by enabling energy sharing during supply disruptions, balancing generation shortfalls, and strengthening collective resilience. Extreme natural events further reinforce the need for greater cooperation. Extreme weather events, including droughts affecting hydropower production, hurricanes damaging transmission infrastructure, and heatwaves increasing electricity demand, are placing increasing stress on national energy systems. Integrated regional networks can provide critical redundancy and mutual support during such disruptions. Strengthening energy integration and strategic interdependence across the Americas therefore represents not only an opportunity to improve system efficiency, but also a fundamental step toward safeguarding energy security, economic stability, and sustainable development throughout the Hemisphere.

B. PURPOSE OF THE SESSION This session aims to provide Member States with a forward-looking dialogue on how deeper regional energy integration and strategic cooperation can strengthen energy security and resilience across the Americas. At a time when global energy systems are experiencing increasing uncertainty, from geopolitical tensions and supply chain disruptions to climate-driven shocks, no country can fully safeguard its energy system in isolation. Strengthening regional cooperation can enable countries to share resources, diversify supply options, and build more flexible and reliable energy systems. The meeting will examine how regional energy integration, including cross-border electricity interconnections, coordinated regulatory frameworks, and expanded regional energy markets, can enhance system reliability, reduce exposure to external supply disruptions, and optimize the use of the region’s diverse energy resources.

Particular attention will be given to how the geographic complementarity of renewable and fossil resources across the Americas can strengthen system resilience. Hydropower and natural gas can provide flexible balancing capacity for variable renewable generation, while solar and wind rich regions can

supply clean electricity during periods of high demand or reduced hydrological availability. The session3 will also explore how regional cooperation can strengthen preparedness for external energy crises by enabling coordinated responses to supply disruptions, price volatility, and infrastructure failures. Ultimately, the session will encourage Member States to recognize that energy integration is not only a matter of infrastructure connectivity, but also a strategic pillar of regional resilience, economic stability, and long-term energy security.

C. AUDIENCE AND EXPECTATIONS CIDI Meetings are attended by representatives of the Permanent Missions to the OAS. Given the focus of this session, the participation of national energy authorities, regulators, transmission system operators, and regional integration institutions is particularly encouraged, whether in person or virtually.

The session will also benefit from contributions by experts from regional energy organizations, and development banks. The dialogue is expected to focus on practical policy approaches, infrastructure planning, and financing strategies that can support regional energy integration and strengthen collective energy security across the Americas.

D. STRUCTURE OF THE SESSION The CIDI meeting will begin with the substantive thematic discussion described herein and continue with a series of procedural items. The first part of the meeting will include 7-minute presentations from guest panelists, followed by interactive dialogue facilitated by the Chair among invited experts and

Member States. In the interest of time, Member States are kindly requested to limit their interventions to 5 minutes from the floor . Interventions may be delivered directly by Permanent Missions or, at their request, by sectoral authorities connecting from capitals on behalf of their respective countries. The discussion will center on how Member States can strengthen regional energy integration as a strategic tool to enhance energy security and resilience across the Hemisphere. It will examine how cross-border electricity interconnections, coordinated planning frameworks, and regional energy markets can improve system reliability, reduce costs, and strengthen collective responses to external disruptions. The dialogue will also consider how renewable expansion, electrification, and grid modernization can be aligned with regional

integration efforts to fully leverage the complementary energy resources that exist across the Americas. Particular emphasis will be placed on identifying policy adjustments, regulatory coordination mechanisms, and investment strategies necessary to expand regional interconnections and facilitate crossborder electricity trade. The session will also explore how cooperative initiatives such as the proposed Energy Security Partnership of the Americas (ESPA) could support greater coordination among Member States on issues related to energy resilience, infrastructure development, and crisis response. Recognizing that resilient and interconnected energy systems are essential for economic stability, social welfare, and regional cooperation, the insights generated during this exchange will contribute to shaping future CIDI deliberations and potential recommendations aimed at strengthening energy security across the Americas. Member State delegations are encouraged to consider the following guiding questions:  How can OAS Member States accelerate regional energy integration to strengthen collective energy security and resilience?  What regulatory and institutional frameworks are needed to facilitate greater cross-border electricity trade and infrastructure connectivity?4  How can regional cooperation help countries respond more effectively to global energy crises, supply disruptions, and price volatility?  In what ways can integrated energy planning help maximize the complementary energy resources that exist across the Americas?

E. OUTCOMES OF THE SESSION The session is expected to elevate regional energy integration as a strategic pillar of energy security discussions in the Americas. It will promote greater awareness among Member States of the economic and security benefits associated with strengthening cross-border energy cooperation and expanding regional energy infrastructure. Through constructive dialogue, the meeting will encourage Member States to explore new opportunities for collaboration in areas such as infrastructure development, regulatory harmonization, regional electricity trade, and coordinated responses to energy crises. The insights generated during the session are intended to inform future CIDI discussions and potential recommendations related to strengthening regional energy security and cooperation. By advancing strategic integration and collaborative approaches, Member States can reduce vulnerability to external disruptions, enhance system reliability, and support a more resilient and sustainable energy future for the

Hemisphere.

F. INVITED GUEST EXPERT PANELISTS The following expert panelists will join the CIDI session:  Alfonso Blanco, Director of the Energy Transition & Climate Program, Inter-American Dialogue. Mr. Blanco will examine the strategic role of regional energy integration in

Hemisphere.

F. INVITED GUEST EXPERT PANELISTS The following expert panelists will join the CIDI session:  Alfonso Blanco, Director of the Energy Transition & Climate Program, Inter-American Dialogue. Mr. Blanco will examine the strategic role of regional energy integration in advancing the energy transition across Latin America and the Caribbean. Drawing on his experience as former Executive Director of the Latin American Energy Organization

(OLADE), he will discuss opportunities to strengthen regional cooperation, expand renewable deployment, and develop coordinated strategies that enhance energy security and resilience.  Marcelino Madrigal, Chief of the Energy Division, Inter-American Development Bank (IDB). Dr. Madrigal will address the role of regulatory frameworks, electricity markets, and infrastructure investment in strengthening interconnected energy systems across the Americas. He will also explore how multilateral financing, and regional cooperation can support grid modernization, cross-border electricity trade, and the development of resilient and sustainable energy systems.