Smart Meters, Smarter Grid: Brazil’s Energy Makeover

Eletrobras and C3 AI back government’s plan to boost power efficiency and grid stability

16 Oct 2025

Brazil is accelerating efforts to modernise its electricity infrastructure, combining a national rollout of smart meters with artificial intelligence upgrades to its transmission network. The twin initiatives aim to cut losses, improve billing accuracy and prepare the grid for rising renewable energy use.

In late September, the Ministry of Mines and Energy (MME) opened a public consultation on a plan to deploy 3.6mn smart meters nationwide. The proposal would require utilities to install meters for at least 4 per cent of their customers in the first year. The devices will feature two-way communication, remote connection control and basic fault detection. Officials said the programme seeks to improve energy efficiency and transparency for consumers.

The move aligns with ongoing upgrades at Eletrobras, Brazil’s largest transmission operator. In August, the company expanded its partnership with US-based software group C3 AI to install the Grid Intelligence platform across its entire transmission network. The AI system identifies grid faults in real time, allowing faster response and improving operational stability. The deployment follows a 2024 pilot at 10 substations.

Analysts say the reforms could strengthen Brazil’s electricity system but warn of financial and technical hurdles. Installing millions of meters will involve high upfront costs, particularly in remote regions, while data privacy and cybersecurity remain concerns. Integration of AI tools with older infrastructure could also pose challenges.

Contract terms with technology suppliers, especially regarding data ownership and long-term maintenance, will be critical, analysts added. “Vendor dependency and cybersecurity safeguards must be carefully managed to ensure resilience,” one industry consultant said.

Despite the risks, growth prospects are strong. The South American smart meter market, valued at $1.18bn in 2024, is forecast to expand nearly 10 per cent annually through 2031. Brazil’s broader smart grid market could rise from $1.58bn in 2024 to more than $5.8bn by 2033, according to market estimates.

If executed effectively, the combination of AI analytics and smart metering could enhance grid reliability, support time-based tariffs and give consumers greater control over energy use, marking a significant step toward a more efficient Brazilian power system.