Abstract
As with the California crisis, reports of power shortages in Brazil have been front-page news. This article addresses the causes of the Brazilian energy crisis and possible solutions. It sets forth 1) emergency measures taken by the Brazilian government to address the short-term crisis, 2) proposed changes in sources of power in Brazil for the longer term, and 3) a critique of the existing legal framework for investment and operations in the power sector. Ultimately, the authors conclude that the Brazilian government must provide a more competitive and attractive environment for international project finance in this industry through more transparent and permanent regulations and continued liberalization of restrictions on foreign investment in the sector.
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