Brazil faces the dilemma of whether to build big hydroelectric dams, weighing the need to keep up with the demand for greater electricity generating capacity — to avoid a repeat of the 2001 energy crisis — and the fears of environmental and social harm. The Belo Monte Hydroelectric Center on the Xingú River, a project halted due to the lack of environmental authorization but whose leaders seek to start up again, is a case that underscores the controversy.

The dam would flood 400 square km of land in the east Amazon, pushing some 2,000 peasant families from their homes. However, it could add 11,182 megawatts to the existing national generating potential of 82,400 megawatts.

Hydroelectric dams have flooded more than 34,000 square km in Brazil, mostly in the Amazon, forcing the displacement of 200,000 families, reports the Movement of People Affected by Dams, which favors the development of alternative energy sources.