This small but effective electricity-saving measure is a legacy of the energy crisis of 2001, when a severe drought crippled Brazil’s hydroelectric system. The government responded by launching a massive energy conservation campaign and requiring utilities to cut rates for energy-saving customers. The policy was so successful that electricity consumptions did not return to pre-crisis levels until several years later.

For Otaviano Canuto, a Brazilian citizen who was recently appointed IDB’s first Vice President for Countries, the motion sensors illustrate a point that is often forgotten in the hype surrounding Brazil’s booming biofuels industry. With headlines in the United States declaring “Brazil achieves energy independence through ethanol,” Canuto explained, it is easy to overlook the fact that his country’s energy achievements are based on a comprehensive policy that includes aggressive development of new oil and gas resources, extensive reliance on hydroelectric generation, biofuels, nuclear power, and yes-energy efficiency.

“Efficiency is a crucial part of the story,” Canuto says. “In Brazil we learned the lesson that price matters, and that consumers do in fact respond to incentives that reward lower consumption.”

Nevertheless, Canuto believes Brazil can achieve much greater “energy productivity” through even more comprehensive efficiency measures such as retrofitting existing hydroelectric facilities with new turbines, mandating the use of compact fluorescent lighting, and improving energy standards for large buildings.

As the third-ranking management official at the IDB, Canuto has responsibility for lending, technical assistance and other operations in all 26 Bank borrowing member countries. He has a personal interest in energy issues and is expected to help guide the Bank’s renewable energy program throughout the region. Part of that effort will consist of exporting Brazilian biofuels expertise to other countries.

“I disagree with those who say Brazil’s experience with biofuels is unique and can’t be replicated anywhere else,” Canuto says. While the scale of Brazil’s biofuels program can’t be matched, Canuto says many Latin American countries have the land resources and climate required to replace a significant part of their fuel needs with ethanol or biodiesel.

“These countries also have a latecomer’s advantage,” Canuto says. “They can learn from Brazil’s mistakes, and they have a chance to catch up fast.” For example, they can take advantage of Brazilian research that has produced hundreds of varieties of sugarcane suitable for a wide range of soils. “There is no need to start from scratch,” says Canuto. New producers can also import Brazilian distillery technology that allows operators to switch between ethanol and sugar production depending on market prices.

The IDB has a vital role to play in facilitating this kind of technology transfer between Brazil and other countries, according to Canuto.

Questions? Comments? Suggestions? Please write to editor@iadb.org