With a housing boom currently underway, this situation is expected to get worse, so the potential for energy efficiency resource acquisition is being looked at very seriously. In addition, the privatization of the power sector has resulted in more realistic and stable electricity prices, creating more favorable conditions for energy efficiency. There are several organizations and government agencies that have set up programs to promote energy efficiency and performance contracting. There is also a nascent ESCO industry in Brazil eager to partner with U.S. firms. Brazilian ESCOs face several challenges Marketing.
Energy efficiency is still new in Brazil with little recognition in the marketplace.
Brazilian ESCOs have limited experience and customers are skeptical of ESCO claims of generating long-term energy savings. These efforts include a study of the technical and market opportunities for energy efficiency in various commercial sectors, a seminar on ESCOs for Brazilian utilities, and an international conference on ESCOs scheduled for June 1998. The strengths are high current rates for energy, high current usage of energy, existing infrastructure for delivering energy services, and minimal barriers for introduction of new technologies and services. The weaknesses are a low level of commitment from government and utilities and the barriers presented by distance and language, which can be addressed at the appropriate time. However, the overall current level of funding to transform the current market is too small for a country the size of Brazil.