Abstract

Significant discussions are continuing in Latin American countries to formulate a common energy policy despite facing significant challenges. A common energy policy is essential as energy plays a strategic role in economic development. It encourages governments to intervene in energy markets, clashing with those who view markets themselves as the entities that need to influence such policy. Latin American countries face challenges of ensuring sufficient capacity and investment to reliably serve their growing economies and formulate a common energy policy. The governments of the regional countries have introduced several changes to implement such a policy. Governments have implemented energy reforms to overcome the challenges of distorted prices of oil, coal, gas, and electricity.