The growing interest in the establishment of a minimum share of renewable sources in the world energy matrix. after the Johannesburg's World Summit for Sustainable Development (WSSD), has raised the question about the means for such new technologies to compete with the traditional ones. The Brazilian experience in the last 25 years with ethanol as a replacement for gasoline can illustrate this possibility. Moreover, recent policies introduced by the Federal government for a minimum share of new renewable sources-wind. modern biomass and small hydro-in the Brazilian electricity matrix reinforces the country's commitment to utilize adequate policies for achieving sustainable development. (C) 2003 Elsevier Science Ltd. All rights reserved.