Brazil’s power industry has long been dominated by its vast hydro resources, which historically have accounted for over 80% of the country’s generation capacity. With engineering marvels like the massive Itaipú dam and the proposed Belo Monte project, the country is a leader in the development and use of hydroelectricity on a grand scale. But as the 2001 energy crisis proved, dependence on a single source leaves the country vulnerable to severe shortages. Thanks to government programs designed to take advantage of the country’s favorable climate, Brazil is committed to diversifying its energy mix while continuing to maintain a renewable energy focus.