A High-Voltage Bet on Brazil’s Clean Energy Future

EDP bets R$7B on upgrading Brazil’s grid to meet the pace of its renewable energy boom.

30 Jun 2025

In Brazil, the future of clean energy may hinge not on turbines or panels, but on wires. EDP Brasil, a subsidiary of Portugal’s Energias de Portugal, is investing R$7 billion ($1.3 billion) to modernise the country’s creaking electricity infrastructure. The two-year programme is among the largest private infrastructure efforts in Brazil this year.

Much of the spending will go to the northern and north-eastern states, particularly Bahia and Piauí, regions with ample sun and wind but not enough lines to carry their power. Transmission shortfalls have led to curtailments, wasting renewable generation that Brazil can ill afford to squander. EDP’s plan, which includes high-voltage upgrades and better interconnection, aims to reduce those losses and prepare the grid for a deluge of clean electrons.

Digitisation is part of the package. The firm is rolling out smart meters, automation tools and real-time network monitoring. These changes are intended to improve service, cut losses and comply with tighter federal regulations. They also align with Brazil’s broader decarbonisation goals, which increasingly require utilities to be nimble, not just large.

EDP’s move is seen by analysts as a defensive play as much as an ambitious one. Global investors are piling into Brazil’s renewable auctions, intensifying competition. Domestic utilities face a choice: modernise or risk obsolescence. EDP’s vertically integrated strategy, from generation to transmission to distribution, gives it a wider margin of manoeuvre.

Risks persist. Building infrastructure in Brazil’s interior remains slow and costly. Inflation in materials could inflate budgets or delay timelines. Yet with capital in hand and political winds behind renewables, EDP is well placed to endure the turbulence.

If successful, the initiative may serve as a template for other Latin American utilities. Brazil is already a poster child for hydropower. Its next chapter may be written in solar and wind, but only if the grid is ready to carry the load.