Legal Aspects of Electricity Export in the Context of Regional Integration

A Comparative Study between the European Union and Mercosur

Abstract

The export of electricity in regional integration contexts faces different legal challenges between the European Union (EU) and Mercosur, due to the distinct regulatory approaches of each bloc. The EU benefits from a harmonized and advanced regulatory framework, such as the Third Energy Package and the Clean Energy Package, which facilitates electricity trade among Member States. Additionally, the presence of a supranational regulatory authority, like the Agency for the Cooperation of Energy Regulators (ACER), ensures legal certainty, predictability, and efficient dispute resolution mechanisms. In contrast, Mercosur, although economically integrated, operates primarily through bilateral agreements, such as the Itaipu Treaty and the Garabi interconnection, without a regional regulatory body to coordinate energy policies in an integrated manner. This absence of a common framework results in legal uncertainties, especially during energy crises or commercial disputes. The comparative study between the two blocs aims to identify successful practices from the EU and suggest ways for Mercosur to advance in harmonizing its regulatory and legal frameworks, aiming to improve regional energy integration and enhance legal certainty and efficiency in electricity trade among its member countries.