Smarter Power: Brazil’s Grid Enters the AI Age

AI innovation, infrastructure upgrades, and targeted deals are driving Brazil’s push toward a smarter, cleaner grid.

8 Oct 2025

Brazil’s electricity network is moving rapidly toward digital modernization as utilities, regulators, and investors align to support the country’s shift to renewable power.

In August, state-controlled Eletrobras announced it would deploy C3 AI’s predictive software across its transmission system to improve fault detection and accelerate power restoration. The company said the initiative would enhance reliability as Brazil faces growing renewable generation, stronger weather events, and higher demand. “We are modernizing critical network monitoring processes,” said Pablo Flores, who oversees protection and automation at Eletrobras.

Regulators are backing the transition with new infrastructure plans. The national energy regulator, ANEEL, confirmed a transmission auction for October 31, offering R$5.53bn in approved projects including new lines, transformers, and stability systems. Further rounds are expected as renewable integration advances. The Ministry of Mines and Energy is also consulting on a programme to install up to 3.6mn smart meters, which could enable time-based pricing and faster response to outages.

Corporate investment continues to reshape the grid landscape. Iberdrola agreed in September to acquire pension fund Previ’s 30.29 per cent stake in Neoenergia for R$11.95bn, subject to regulatory and shareholder approval. The deal would raise Iberdrola’s holding to about 84 per cent, reinforcing its presence in Brazil’s regulated networks. Separately, J&F is in talks to purchase an EDF power plant in Rio de Janeiro in a deal reportedly worth around R$2bn.

AI tools are expected to shorten outage times and reduce renewable curtailment, while new transmission corridors aim to deliver power more efficiently. Smart meters will give utilities better visibility of consumption patterns and help manage peak demand.

Challenges remain, particularly around data quality, cybersecurity, and lengthy permitting for new lines. But with public and private sectors coordinating investment and technology adoption, Brazil’s grid is positioned to become more resilient and capable of supporting its clean energy ambitions.