1) Brazil established mandatory investments in energy efficiency (EE) for utilities in 1997, funded by a 1% wirecharge on annual revenues, creating the National Public Fund for EE and R&D. 2) From 1998-2006, utilities invested an average of $100-150 million annually in EE programs, focusing mostly on public lighting programs. 3) However, evaluations found poor reporting, monitoring, and coordination of EE programs. New regulations aim to improve program design and independent evaluation of impacts.

1. Regulatory Experience in Energy Efficiency in Brazil: some lessons learned Gilberto De Martino Jannuzzi Universidade Estadual de Campinas and International Energy Initiative 7th Meeting of the Global Forum on Sustainable Energy "Energy Efficiency for Developing Countries - Strong Policies and New Technologies", 21 - 23 November 2007.

4. The allocation of the 1% fund (since 2004) /16 Regulator National Public Interest Fund Generation Transmission Distribution > 0,4% R&D > 0,2% R&D > 0,5% EE Utilities Design and Implementation Design and Implementation 0,2% EPE 0,4% 0,2% Public Interest EE Public Interest R&D 1% sales$$$ 0,1% Board: Government, Academia, Private Sector 2004

6. Allocation of Wire Charge Fees from 1998-2006 as % of annual sales (Distributing Utilities) /16 R&D: since 2000 half of the resources are allocated to the Public Fund CTEnerg Energy Efficiency R&D EPE 1998-1999 0.90% 0.10% - 2000-2003 0.50% 0.50% - 2004-2005 0.50% 0.40% 0.10% From 2006 0.25%-0.5% 0.60% 0.15%

8. Utilities’ investments in EE programs /16 PROCEL: Average US$ 14 million/year 1994-2003 Utilities’ compulsory investments: average US$ 100-150 million/year X 0.5 million US$

9. Breakdown of utilities’ investments in EE (%) 1998-2003 /16

10. Up to now: results hard to measure/evaluate Types of programs 1. Residential 2. Industrial 3. Commerce&services 4. Rural 5. Public Buildings 6. Public Services 7. Public Lighting, 8. Education/training 9. other Results/impacts 1. Energy savings 2. Peak savings 3. Cost/benefit 4. Market transformation 5. Socioeconomic impacts U$100-150 millions and growing! ?