This article analyzes the impact of changes in the regulatory context on the development of cogeneration in Brazil. It outlines and criticizes, in the light of international experience, the basic principles guiding Brazil's legal framework designed to encourage cogeneration systems. Brazil is restructuring its power sector, spurred by high risks of shortfalls and difficulties in obtaining funds to invest in the expansion of its installed power generation capacity. This imminent crisis situation highlights some of the advantages of cogeneration systems compared to conventional thermopower generation schemes. However, until this moment, there is not a specific and comprehensive energy policy designed to encourage cogeneration schemes. The analysis of the international experience can help countries, such as Brazil, contemplating electricity market reform, avoid similar mistakes when promoting cogeneration development.