Abstract: Since 1990s, the innovation of the Latin American public utility regulatory mechanism with energy and power regulation as the main object has gradually shifted from the organizational principles of efficiency and competition to the priority of society and the environment in energy planning. This paper takes ANEEL-centered reform of Brazil's energy and electricity regulatory mechanism as a case study, by analyzing the mechanism of ANEEL, and its role in Brazil's wind and solar distributed generation, and argues that the regulatory agency has undertaken innovative reforms within its remit, prioritizing social and environmental factors is the premise for the future energy and power in Latin America to maintain its economic and environmental sustainability.