Argentina Cold Snap Causes Energy Woes
Jun 1, 2007 12:48 AM (3 days ago)
By BILL CORMIER, AP
BUENOS AIRES, Argentina-
A cold snap in Argentina led to electricity and natural gas
shortages this week, idling factories and taxis and causing
sporadic blackouts in the capital.
Beset by the coldest May since 1962, millions of residents
fired up space heaters, straining Buenos Aires' electrical grid
for three nights and forcing authorities to slash power supply
nationwide and briefly cut domestic natural gas provisions and
exports to Chile.
Grumbling taxi drivers waited for hours in lines stretching
several blocks to fill up their black-and-yellow cabs with scarce
compressed natural gas. Some protested by tossing garbage into the
streets during rush hour Thursday, causing traffic jams.
"I went all over town to 15 service stations and couldn't find
compressed gas anywhere," said Ernesto Gorena, whose taxi was
among some 70 percent of the city's natural gas-powered fleet that
was temporarily idled.
Temperatures hit the freezing point or dipped below for three
successive nights in the capital, which has not seen snow in years.
Such cold is rare for the southern-hemisphere autumn in Buenos
Aires, which normally sees temperatures in the 40s and 50s
Fahrenheit or higher this time of year.
Critics said the three-day blast of Antarctic air - which is also
blamed for 23 deaths from exposure as well as fires from faulty
heaters - has brought to light weaknesses in the nation's plan for
meeting rising energy demand.
Political analyst Rosendo Fraga said Argentina's energy woes date
to a 2002 economic crisis, when regulators froze rates for home
utility bills just after the peso devalued more than 70 percent
against the dollar. Since then, far less revenue has been available
for upgrading and building plants and other infrastructure.
"A lack of investment in the energy system, in great part
generated by the freeze on utility rates, has created a situation
which soon or later could explode," Fraga said.
Many factories went idle this week when distributors shut off or
reduced gas supplies to give priority to homes. Government
regulators also ordered an 800-megawatt electricity cut nationwide
for four hours Wednesday night, which led to sporadic blackouts in
the capital.
At a shampoo and detergent factory in suburban Buenos Aires,
executive Alberto Rodriguez said workers had to race to meet
production goals after one outage.
"The lights went out for several hours," Rodriguez said. "To a
greater or smaller extent, we are all suffering from a lack of
energy and gas."
On Thursday, officials said there was enough energy to meet
demand as temperatures warmed, and they defended their response to
the cold snap.
"The energy system during the days of extremely low temperatures
responded well," said Julio De Vido, the nation's top energy
planner. He called the cold an "extraordinary climate event unseen
here in 45 years."
He said Argentina imported energy from Brazil and Uruguay to meet
surging demand, and compressed gas supplies had been restored to
service stations.
The shortages also had a ripple effect in neighboring Chile,
where authorities scrambled to provide energy after Argentina
slashed natural gas exports. De Vido confirmed that Argentina
resumed shipments to Chile on Wednesday.
Energy analyst Gerardo Rabinovich said more problems could be on
the way in the next two years before a series of new gas-fired
generating plants commissioned by the Argentine government are up
and running.
"Cold weather always produces energy usage peaks and problems,"
Rabinovich said, adding that Argentina "sneezed" when the freezing
temperatures hit. "As in medicine, the fever doesn't just happen on
its own; it happens as a result of some underlying disease."