This study focuses on power sector reforms in Brazil and assesses the policy implications and lessons for the other developing countries. In Brazil, power sector reform started in 1995. The major concern of the power sector in Brazil was how to resolve the problem of extremely high dependence on hydropower sources and to attract investment for thermal power generation. However, the market-oriented approach adopted in the late 1990's turned out to be non-effective. The electricity crisis in 2001 evoked very active public debates about how Brazil should create a favorable environment for supply security and quality, private investment and competition, as well as a reliable regulatory framework. After the Lula administration took office, Brazil shifted its electricity policy to emphasize long-term stability based on Law No. 10847 and Law No. 10848 enacted in March 2004. Power sector reforms in developing countries should be accompanied by continuous investment in infrastructures since the countries will need to respond to rapid economic growth. The lessons obtained from Brazil's experience may very well contribute to development of an electric sector reform policy in developing countries. However, when the actual introduction of reforms is begun, it will be necessary to use a case-by-case approach according to specific circumstances in individual countries when considering the reforms necessary.