Innovation and energy conservation: electric motors in Brazil

Abstract

This paper assess the potential for energy conservation through the spread of High Efficiency Motors (HEM) in the Brazilian market. The strategy of 9 main Brazilian electric motors producers is reviewed and the market barriers to the diffusion of HEM was studied. We found out that there are technological opportunities to improve the efficiency of Brazilian electric motors. The main difficulty to improve these motors efficiency is not producers technological capability but their strategy for the domestic market. These producers have different technological strategy for foreign and domestic market. The industrial organization of motor producers suppliers represents an important barrier to the spread of HEM in domestic market. The study concludes that an innovative policy that deals with cost differential between standard and HEM motorsis fundamental to induce energy conservation in the electric motors market.