Energy Industry Restructuring in Brazil: A Critical Vision

This article presents a critical analysis of the restructuring process in the energy industry in Brazil, emphasizing the influence of the country's peculiarities. The analysis focuses initially on the general energy scenario, especially the main problems that led to reform in the energy sector. Then the two main energy sectors - petroleum/gas and electricity - are reviewed, with an emphasis on the basis and construction of the new models; principles and objectives of the models; and the role of the institutional participants. Reference is also made to problems associated with the period of transition to the new models. Present difficulties such as the lack of investments, necessity of electricity rationing, and political pressures, are finally introduced into the scenario, allowing a critical vision of the situation, in which the main accomplishments and challenges are emphasized. This summarized view of the recent changes in the Brazilian energy industry may be the basis for further work and discussions on the subject, and represents an experience that can be helpful for other countries or regions going through structural changes.