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This article summarizes the results of the project on indicators for sustainable energy development (ISED) in Brazil. The project's aim was to present energy related economic, social and environmental data to policy makers in a coherent and consistent form, showing interlinkages, time‐series and cross‐sectoral analyses and assess energy policy. Two priority areas assessed by these indicators, regarding the country's energy supply and demand, helped in the identification of a number of energy policy options that focused on specific aspects of the country's energy sector. On the supply side, these options include the development and stimulation of renewable energy, such as small‐scale hydroelectric, wind, solar photovoltaic power and bagasse cogeneration; stimulation of programmes for ethanol use as automotive fuel and sugarcane bagasse cogeneration; and implementation of natural gas‐fired, combined heat and power (CHP) plants. On the demand side, policy options include: the full implementation of the law on efficiency standards for appliances; expansion of utility investment in end‐use energy efficiency; adoption of targets and protocols to reduce energy intensity in the industrial sector; improvement of passenger transport efficiency; and the creation of a fund to improve energy affordability for the poor.