2. Energy Use, Economy, and Carbon Emissions
7. Environment and Energy Efficiency
8. Natural Disasters and Reconstruction
U.S.
Government Assistance in Recontruction
Year 2000 (Y2K) and the Energy Sector in the Americas
The Legacy of Natural Disasters
- In 1998, three major natural disasters affected the Americas, causing severe damage and the need to rebuild
- In all three cases, the energy sector was directly affected, either through structural damage or financial loss
Hurricane Mitch Central America October 1998 Table
U.S. GOVERNMENT ASSISTANCE IN RECONSTRUCTION
- In the immediate aftermath of Hurricane Mitch, the U.S. government provided an estimated $300 million in aid to the affected countries.
- On May 20, 1999, the U.S. Congress approved an additional $621 million for U.S. Agency of International Development (USAID) reconstruction projects in Central America and the Caribbean (plus Colombia, affected by an earthquake).
- The U.S. Department of Energy (DOE) sent disaster recovery teams (comprised of personnel both from DOE and the private sector) and equipment to Honduras, El Salvador, and Nicaragua.
Year 2000 (Y2K) and the Energy Sector in the Americas
With the approach of the year 2000, the Americas region, like the rest of the world, is preparing for possible problems caused by computers which use a date-based function where the year is represented as a two digit number. With the new millennium the potential exists that computers may either misread or be unable to read the year correctly and therefore fail to function properly. According to one estimate, Mexico, Brazil and Argentina alone need to spend $63 billion on total public and private Y2K preparedness to ensure a smooth transition. The fear of power outages, disruption in energy production or distribution caused by Y2K-related computer problems has led the region to take a variety of actions. Below is a listing of select Y2K-related spending, preparedness and contingency plans for the energy sector throughout the region.
- Most, if not all, countries had established a Year 2000 Commission to investigate and coordinate the government response to the impending problem.
- The World Bank and the Inter-American Development Bank have $200 million in loans worldwide to assist with Y2K preparation.
- In North America, extensive testing conducted thus far suggests that the rollover to the Year 2000 will create only a minimal impact on electric system operations.
- Mexican energy systems are on schedule to complete testing in June 1999.
- Many of the large electric companies in the larger countries are already in post-testing phases.
- Venezuela’s electricity sector is considered to be one of the most vulnerable.
- Venezuelan state oil company PDVSA has spent $450 million thus far for preparation.
- Officials from South American countries with electricity interconnection points were scheduled to meet in early July 1999 to coordinate testing and contingency plans.
- According to Accion Chile 2000, Chile’s electricity utilities were 44% prepared at the end of May 1999. Similarly, its fuel services were 48% prepared.