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Diversifying the Energy Matrix: The Case of Brazil Sergio C. Trindade This essay reflects my own experience with energy, development, technology, and environment issues in Brazil and elsewhere, with specific reference to Brazil’s development and the role of energy services. THE ENERGY-DEVELOPMENT NEXUS The word energy is synonymous with development, and it is also one of the main economic factors of production. Developing societies are constantly increasing their energy use, and there is a clear correlation between Gross Domestic Product (GDP) and energy consumption. Interestingly, it takes twice the amount of energy to produce a unit of GDP in the United States than in the European Union, areas with similar levels of development.1 This suggests that one way a country can expand its access to energy resources is by using them more efficiently. Energy access can also be expanded through the integra- tion of the electricity, oil, and gas infrastructures. Although there are elements of energy integration in South America, much work remains to be done. Another dimension of the energy-development nexus is the opportunity provid- ed by a growing energy industry for increasing the country’s knowledge base and improving the quality of its human capital. As a child in Brazil spending summers on the remote farm of my maternal grandfather in Abaeté, Minas Gerais, I found that all gasoline was imported from the United States and sold in 5-gallon or smaller cans to fuel the common- ly-used old Model-T cars. Lighting was provided by kerosene lamps and fire- wood was the fuel for cooking. Corn was ground with energy from a water wheel. As a teenager I would visit my grandfather’s new farm, which was still off the grid. Fortunately, there was a small Pelton-wheel generator, which provided some lighting from the running water that was dammed during the day and allowed to run in the early hours of the evening.PDF Image | Energy and Development in South America
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