1

Experience of smart grids implementation in

Brazilian Distribution Utilities
M. S. Silva1, B. B. Anunciao2, and A. P. Nbregas3

Abstract-- The distribution electrical systems will pass, in the

next years, through significant changes, that come from the
integration of distribution networks with communications, IT,
and automation technologies. Those changes are driven by the
increase of different number of distributed energy generation
sources, allowing millions of Brazilians to produce energy, on
their own, and share the exceeded. Smart Grids integrates
equipment and data communication networks to the electrical
energy supply system, making possible to monitor the behavior of
the network online. Smart Grid is not a technology, but a
combination of several latest technologies. This survey paper
provides a comprehensive look at smart grid: the key
technologies, main features, the perspectives, obstacles of its
developments, and the current Brazilian situation in the subject.
Index Terms-- Smart Grid, Intelligent Networks, Digital
Meters, Electrical Automation.

the new highway to transport electrons. Those changes will be

driven, mainly, by the significant increase of installation of
distributed generation sources, allowing that millions of
Brazilians to produce their own energy to share the
overbalance.
The biggest challenge is regulate, in a more efficient way,
the use of intelligent devices for network managing as meters,
sensors, remote-controlled switches, telecommunications and
data processing systems, working simultaneously online, and
incentive consumers to interact with their consumptions.
The ANEELs intention is increase the network reliability,
reduce maintenance costs, save more accurate records of the
client use and, especially, reduce the CO2 emissions.
II. OVERVIEW

I. INTRODUCTION

ince 2008, Brazils Electricity Regulatory Agency

ANEEL accomplish studies and approves regulations that
prepare the implementation of intelligent electrical networks
in Brazil. The Normative Legal Act 464/2011, that introduces
the white fee, a regulation that provides the application of
different fees and charges by schedule of consumption at lowvoltage (< 380 V), offering cheaper electrical charges during
the period that the system is less used by the consumers of
electrical energy, and the ANEEL Act 482/2012, that regulates
the installation of distributed micro (<=100 kW) and minigeneration (between 100 kW to 1 MW).
The Brazilian electrical distribution systems will pass, in
the next years, thought significant changes coming from the
integration of distribution networks with automation,
information and telecommunications technologies (Smart
Grids), what will turn the low-voltage electrical network into
The authors wish to thank the Brazilian Electricity Regulatory Agency
ANEEL for their contributions and participation in the paper execution.
1
M. S. Silva is with the Department of Electrical Engineering, Federal
University of Sergipe, Aracaju, SE 49100-000 BRAZIL (e-mail:
milthons@ufs.br).
2
B. B. Anunciao is with the Department of Electrical Engineering,
Federal University of Sergipe, Aracaju, SE 49100-000 BRAZIL (e-mail:
brunoanunciacao@hotmail.com).
3
A. P. Nbrega is with Brazilian Electricity Regulatory Agency ANEEL,
Brasilia, DF 70830-030 BRAZIL (email: nobrega@aneel.gov.br).

Due to a prolonged drought in 2001, the hydropower plants

produced much less electrical energy of their capacity, less
then minimum necessary to the country, what made the whole
country reduce its consumption in about 20% quickly.
Avoiding more situations like that in the future, smart grids
where developed. They are intelligent networks of energy
transmission and distribution based on interactive
communications between all steps of energy conversion. The
smart grids control energy generation, avoiding overload of
the network, generating only how much energy is necessary.
They link small and big decentralized generation centers
with the consumers to create a wide structure. For instance,
once a medium voltage transformer failure event occurs in the
distribution grid, the smart grid may automatically change the
power flow and recover the power delivery service [1].
According to US Department of Energy - DOE, smart grids
are an upgraded electricity network enabling two-way
information and power exchange between suppliers and
consumers, thanks to the pervasive incorporation of intelligent
communication monitoring and management systems [2]. In
Europe Union and USA, the experts agree that the main
components and functions of the Smart Grid are the
intelligently connection of generators and consumers, in order
to efficiently ensure sustainable, economic and secure

electricity supply, using digital technology to improve

reliability in the delivery systems.
Transmission

The US National Institute of Standards and Technology

NIST has proposed a Conceptual Model to represent the
building blocks of an end-to-end smart grid system,
coordinating researches on this field and find how the system
would interact. Although a precise and comprehensive
definition of smart grid has not been proposed yet, according
to the report from NIST [3], the anticipated benefits and
requirements of smart grid are the following:
1. Improving power reliability and quality;
2. Optimizing facility utilization and averting construction
of back-up (peak load) power plants;
3. Enhancing capacity and efficiency of existing electric
power networks;
4. Improving resilience to disruption;
5. Enabling predictive maintenance and self-healing
responses to system disturbances;
6. Facilitating expanded deployment of renewable energy
sources;
7. Accommodating distributed power sources;
8. Automating maintenance and operation;
9. Reducing greenhouse gas emissions by enabling electric
vehicles and new power sources;
10. Reducing oil consumption by reducing the need for
inefficient generation during peak usage periods;
11. Presenting opportunities to improve grid security;
12. Enabling transition to plug-in electric vehicles and new
energy storage options;
13. Increasing consumer choice;
14. Enabling new products, services, and markets [1].
A model was proposed to meet with those benefits and
requirements. For that, NIST divided the smart grid system in
several domains that are briefly described in the Table I, and
show in the Fig. 1 (in this figure it was added an extension of
the NIST model, by the European Commission Smart Grid
Task Force). Each domain involves one or more smart grid
actors and applications. The actors include devices, systems,
or programs that make decisions and exchange information
necessary for performing applications.
TABLE I
DOMAINS AND ACTORS IN THE SMART GRID CONCEPTUAL MODEL

Domain
Customers

Markets
Service Providers
Operations
Bulk Generation

Actors in the Domain

The end users of electricity. May also
generate, store, and manage the use of
energy. Traditionally, three customer types
are discussed, each with its own domain:
residential, commercial, and industrial.
The operators and participants in electricity
markets.
The organizations providing services to
electrical customers and utilities.
The managers of the movement of electricity.
The generators of electricity in bulk

Distribution

quantities. May also store energy for later

distribution.
The carriers of bulk electricity over long
distances. May also store and generate
electricity.
The distributors of electricity to and from
customers. May also store and generate
electricity.

To enable the smart grid functionality, the actors in a

domain interact themselves with actors of different domains.
However, the communication will not have necessarily the
same requirements, and domains, often, may contain
components of other domains. See again Fig. 1.

Fig. 1. Original NIST Smart Grid conceptual model and adaptation to the EU
context (in blue).

III. INTERNATIONAL EXPERIENCE

In greater or lesser degree, that technology is already
available in Europe (spotlight for Italy and Germany) and
North America (spotlight for USA). The phase of installation
of the intelligent meter system was accomplished in these
regions.
According to specialists, the market of smart grids
technologies will pass through an annual growth rate of over
10%, exceeding from US$ 33 billion annually (in 2012) to
US$ 73 billion until the end of 2020, amounting US$ 494
billion in cumulated income during this period. This is a series
of investments in the world in updating and automation of the
networks and substations, in addition to measurements
technologies and information [5].

A. Europe: Macro-perspective
According to the inventory of smart grid projects performed
in 2011 by the Joint Research Centre - JRC, the European
Commissions in-house Science service, the level of
investments in smart grid projects amount to around 5.5
billion. The JRCs 2012 Smart Grid database contains 281

smart grid R&D and demonstration projects from 30 European

countries (EU27, Croatia, Switzerland and Norway),
representing a total investment of 1.8 billion. About 80% of
the projects surveyed in 2012, started in the period 2010-12.
That is the reason that the catalogue includes a relatively small
number of projects, which started in 2012 [6], shown in Fig. 2.

B. Italy
In Italy, the Authority for Energy and Gas is aimed at
providing directives (based on Government lows) for
supporting the development of Smart Grids by promoting and
encouraging pilot projects in focused areas of the country.
These projects include topics such as: smart management
of the power network; and the integration of Electric Vehicles.
The first action that Italy made in this direction occurred in
2007, when ENEL SpA, the largest electric utility in Italy,
decided to install a nationwide network of all electronic
energy meters. By the end of 2009, almost 32 million smart
meters were installed nationwide replacing the existing meters
of most medium-voltage and low-voltage customers. The
primary goals of the project, known as Telegestore, allows
remote reading of residential consumer energy consumption
and the enablement real-time contract changes such as the
activation or termination of service [7].

Fig. 2. Number of smart grid projects surveyed in 2011 inventory and in the
2012 update across starting years.

In Europe, the smart grids are arrangements used alto to

achieve the goals that the European Parliament approved in
the Climate and Energy Package. This package (also known as
20-20-20 objectives) determines the reduction in 20%
emissions of greenhouse gases, increase in 20% the quota of
renewable energy in energy consumption and increase in 20%
the energy efficiency until 2020.
A geographical distribution of the projects released in 2011
and 2012 (JRC database) is shown in Fig. 3. 70% of all
projects are in seven countries: Denmark, Germany, Italy,
Austria, the UK, France and Spain.

The communication is bidirectional and uses different types

of
communication technologies
for
action
read,
parameterization and automation; the meter capable of cyclic
reading, capture connectivity information and fraud detection.
It also can disconnect and connect the system, operate changes
and gradual reduction of the demand, offer different fees and
update its software, all this remotely.

C. Germany
The e-energy Program, started in 2008, and scheduled to
end in 2013, focused in the integration of intermittent
renewable energy sources, which shall account for 80% of the
Germany electricity supply by 2050. Due that, Germany
started to test six pilot projects in smart grids. The aims of
those protects are [10]:
1. Intelligent management of consumption;
2. Test a control system for balancing intermittent wind
power and integrating the electricity on the distribution grid;
3. Testing smart homing solutions;
4. Test a tool called energy butler, that helps consumers to
manage their demand and benefit from volatile energy prices;
5. Explore ways to pool renewable energy
commercialize this energy in different markets;

and

6. Managing energy systems that provide market

participants with real-time data on supply and demand.

D. United Kingdom

Fig. 3. Geographic distribution of smart grid projects surveyed in 2011

inventory and in the 2012 update across starting years.

Recent work by the Department of Energy and Climate

Change DECC and Ofgem Smart Grid Forum has
suggested that, when compared to conventional grid upgrades,
smart solutions could save between 2 billion and 4 billion to
2050 in distribution network costs, some generation and
transmission costs, and the cost of losses and interruptions to
the distribution network [7].

The DEEC and Ofgem group said that: The UKs smart
grid will develop to support and accelerate a cost-effective
transition to the low-carbon economy. The smart grid will help
the UK meet its 2020 carbon targets, while providing the
foundations for a variety of power system options out to
2050.

E. United States of America

The first experience in smart grids of USA was in 2008,
starting with IBMTM technologies. This came after the
support for smart grids became a federal policy with passage
of the Energy Independence and Security Act of 2007. This
law set US$ 100 million in funding per year from 2008 to
2012, establishing rules to sates, utilities and consumers to
build smart grid capabilities [8].
The USA has important initiatives related to smart electric
grids. In the country, there are many pilot experiences, but the
regions where the use of intelligent measurement are more
expressive, are Texas and California, whose the main vectors
are reduction of the demand in the peak time and energy
efficiency promotion.
In 2009, the north-American Recovery and Reinvestment
Plan was launched, allocating US$ 3.4 billion for smart grids
project implementation. The north-American government
point of view is that the technology enable an electrical system
more reliable, that it is a sustainable technology, that it will
create more jobs, and sab 20 billion dollars in after 10 years.
IV. BRAZILIAN TRENDS IN SMART GRIDS
In 2009, the Brazils Electricity Regulatory Agency
ANEEL approved the changing of conventional energy meters
for electronic ones and created the Work Group for Smart
Grid Implementation (GTRI) that planned the actions for
short, medium and long terms for automate the management
of residential electricity consumption. Initially, the focus was
to automate the route of electrical energy to the final
consumer. Thus, the first step was the installation of
electronics meters, Act 440 from Ministry of Mines and
Energy MME) [11].
If the idea of reducing the losses by the utilities, calculated
around R$ 5 billion (or US$ 2.5 billion) per year, in the other
hand, it is need to pay, before of that, R$ 16 billion (US$ 8
billion), only for the substitution of about 40 million
electromechanical meters around the country. The GTRI also
has the role of identify potential source funding to avoid the
increase of fees for the clients.
In 2010, ANEEL made a public hearing about the
regulation to define the characteristics and minimum
functionalities, which should cover electronics meters to be
used in consumer units connected to low voltage in the
country. Pilot projects are implemented in the city of Sete
Lagoas, in Minas Gerais state, that is a project from Energy
Company of Minas Gerais CEMIG. Another one, Parintins
in Amazonas state, led by Eletrobras.

Some Examples of Smart Grid in Brazil

A. Rio de Janeiro
The Ampla utility was the first to use centralized
measurement in Brazil. Between 2003 and 2009, the company
connected 300 thousand consumer units (12% of its clients) to
digital meters, providing a reduction of loss rate from 25% to
20% of the distributed energy. The system consists in an
application that uses electronics modules destined for
measurement, acting for the concentration, processing and
indicating consumption information in a centralized way
(exteriorized and shielded measurement). The implementation
system enables remote reading and the disconnection and
reconnection remotely.
Light is another power utility that progress in use of digital
meters. The company decided to install individual meters in
the consumer units, where the purchasing power is higher,
achieving 40 thousand clients. Between, 2008 and 2009, the
losses reduced from 25% to 9%, and the goal is achieve 2%
[12]. Light company invest in R&D programs, what enables
the development of advanced solutions, intelligent equipment
as communication (gateways), displays, sockets with an
indication of consumption and load switching (smart plugs)
and electrical vehicles terminals [5].
B. Paran
In Curitiba city, the utility COPEL implemented focusing in
automation with remote operation and/or automation of the
distribution network and substations, also optimizing the
distribution system control through Georeferencing solutions.
The benefits are the reduction in interruption during the power
supplying. For this project, the switches are equipped with
current and voltage sensors, and the reconfiguration is based
in the collected data, and it also involves the application of
sophisticated IT telecommunication systems, that uses
optimization algorithms for integrate the network with the
minimization of the losses.
In addition to the examples mentioned, there are a few other
pilot projects in Brazil, that power utilities and other
companies invest in R&D programs on the smart grid domain
(intelligent devices, data processing systems and
telecommunication systems), to develop a more efficient and
reliable electrical system for the country. The current pilot
projects are represented on the Fig. 4.

Fig. 4. Smart Grid Pilot Projects in Brazil [5].

V. REGULATION OF SYSTEMS FOR MEASURING ELECTRICITY IN

CONSUMPTION UNITS

Public Hearing no 48/2012: mentions the pre-payments

for use of smart networks, quality monitoring system. [13]

The public hearing 043/2010 from ANEEL, had the

objective of obtain additional subsides and information for
establishing a Normative Resolution about the minimum
requirements for the electronics meters, that will be used in
low tension consumer units. Since 2009, ANEEL together
with the MME, analyze and identify needed actions to support
the establishment of public policies for the implementation of
a Brazilian Program of Intelligent Electrical Network. For the
studies, were participating members of the Energetic Research
Enterprise EPE, the Center of Research in Electrical Energy
Eletrobras/Cepel and the National Operator of the Electrical
System ONS [13].

In economical subject, the smart grids Brazilian market is

seen a huge potential and represents a great opportunity to
business development until the Olympic Games, in 2016.
Between 2011 and 2015, Brazil will have invested about
US$ 8 billion. The major part of those investments is going to
applied in electronics meters, about US$ 2.2 billion, i.e.,
27.5% of the amount. The government plan is to install 64
million meters until 2021, however, the implementation must
be given a bit slowly, reaching the goal only after 2026, as
shown in the Fig. 6. [4]

The motivations for the creation of public policies for

implement smart grids in Brazil are the improvement of the
quality in the service of low tension, reducing the losses in the
energy supplying, as said before, and the operational costs.

Fig. 6. Growth forecast of smart meters in Brazil (in million) [4].

VI. COMMUNICATION SYSTEM

Fig. 5. Quality of Service DEC/FEC Brazil 2001 to 2011 [12].

The Fig. 5 shows that the distribution utilities (DU), since

2009, cannot achieve the quality level established by the
regulator, with interruption numbers higher than the desired. Observation on the Fig. 5: DEC index (Equivalent Interruption
Duration per Consumer Unit) and FEC index (Equivalent
Interruption Frequency per Consumer Unit).
Due this, they paid indemnity to consumer in 2010, in order
of R$ 360 million and, in 2011, over R$ 385 million. The
process of implementation of smart networks will be put into
practice gradually. In this sense, ANEEL has issued some
regalements related to this theme, which highlighted:
Normative Resolution no 482/2012: treats of the link of
distributed micro and mini generation;
Normative Resolution no 464/2011: treats of the
establishment of the white fee (PRORET);
Normative Resolution no 375/2009: treats of the
regalements of use of PLC;
Normative Resolution no 345/2009: treats of the
compulsory use of Geoprocessing systems (PRODIST);

In the proposal submitted to the Public Hearing, the meters

should have a device that enables the bidirectional
communication between the meter and the measuring center of
the DU. Furthermore, the suspension and reconnection
activities of the supply, as well, the monitoring and control of
some meters parameters, should be executed remotely by the
DU. The proposal is based on the fact that the implementation
of the communication system and the possibility of remotely
operation, can reduce the operational costs, promote actions of
energy efficiency and disseminate intelligence on the network.
Although some countries adopt a communication system as a
way to reduce operating costs, this reality is not observed in
all areas of operation of the DU, given the high cost of
communication infrastructure and the relative low cost of hand
work in the country.
The determination of specific protocols, in the initial
implementation phase can restrict the use of technologies by
the DU. It means that, maybe in some cases the solutions that
will not use a determinate protocol can be more adequate to be
used in specific consumers or in some concession area or
distribution permission. The more suited is a solution that uses
proprietary protocol, the regulatory determination, otherwise,
prevent its use and the implementation possibilities of the DU
will be restricted. Therefore, it is proposed not to standardize
the protocol type to be used.
VII. REGULATION IN BRAZIL
The government is dealing with number and studies with
the objective of creating public policies for smart grids on

electrical energy. This does not exist yet, but some idea of
changing equipment supported by the National Bank for
Economic and Social Development BNDES. The terms of
this discussion and its strategies are under analysis by the
secretaries of innovation and of production development,
either from the Ministry of Development.
It was necessary US$ 33 billion or more than R$ 70
billion (quotation of 2014) to promote the replacement of all
equipment needed, since switches up to the 74 million meters
of residential, commercial and industrial energy in the
country. This act involves 63 power distribution utilities.
The challenge today is to obtain clear regulatory guidelines
on the meters. It is still necessary to receive precise details
from the distributors who will be carrying out the replacement
as to what meters will be used and what components they will
have. Another concern is the certification of the meters. There
is considerable uncertainty as to how long INMETRO (the
Brazilian National Institute of Metrology) will take to certify
them [14].
A Smart Grid offers significant opportunities for utilities
and consumers to manage the energy consumption by the
usage of advanced metering infrastructure and dual-way and
real time communication. It also provides opportunities to
manage the fuel resources by potentially reducing the national
need for additional generation sources, better integrating
renewable and non-renewable generation sources into the grid
operations, reducing outages and cascading problems, and
enabling consumers to better manage their energy
consumption. A Smart Grid can be a mechanism for achieving
the worldwide goals in the areas of energy security, climate
change, grid reliability, economic growth, and national
competitiveness [2].
The studies related to smart grids is under development in
the world and, in Brazil, ANEEL verifies how this theme is
threated in different countries, to make possible understand the
reasons that those nations has introduced this technology in
their energy systems, and implement this high technology in
measurements, communication and distribution of electrical
energy, reducing losses of energy and money.
Around the world, smart grids are face as a tool for giving
solutions to problems and achieve goals related to CO2
emission reduction, but also highlight the reduction of
electrical energy consumption, reduction of operational costs,
and market opening. Brazil analyzes the internal possibilities
to adapt the system to the reality of the country.
VIII. REFERENCES
Periodicals:
[1]

X. Fang, S. Misra, G. Xue, Smart Grid - The New and Improved Power
Grid: A Survey, Communications Surveys & Tutorials, IEEE. (2012)
Vol. 14, Issue: 4, 944-980.

Technical Reports:
[2]

V. Giordano, S. Bossart, Assessing Smart Grid Benefits and Impacts:

EU and U.S. Initiatives - Joint Report EC JRC - US DOE, Publications

Office of the European Union, Luxembourg, 2012.
National Institute of Standards and Technology. NIST Framework and
Roadmap for Smart Grid Interoperability Standards, Release 1.0,
January, 2010.
Agncia Nacional de Desenvolvimento Industrial. Relatrio de
Acompanhamento Setorial Smart Grid, March, 2012.

[3]

[4]

Papers Presented at Conferences (Unpublished):

[5]

H. Lamin, Anlise de Impacto Regulatrio da Implantao de Redes

Inteligentes no Brasil, Universidade Federal de Braslia, Departamento
de Engenharia Eltrica. PPGENE.TD - 076/13, Braslia, 2013.
V. Giordano, A. Meletiou, C. F. Covrig, A. Mengolini, M. Ardelean, G.
Fulli, M. S. Jimnez, C. Filiou, Smart Grid projects in Europe: Lessons
learned and current developments 2012 update, JRC Reference
Reports, Publications Office of the European Union, Luxembourg,
2013.
Assessing the Impact of Low Carbon Technologies on Great Britains
Power Distribution Networks, for the DECC/Ofgem Smart Grid Forum,
EA Technology (2012).
Z. Xu, Smart Grid: Trends in Power Market. (2010) Information on
http://www1.cse .wustl.edu/~jain/cse574-10/index.html

[6]

[7]

[8]

Standards:
[9]
[10]
[11]
[12]
[13]
[14]

Information on http://smartgrid.ieee.org/resources/public-policy/italy
Information on http://www.germanenergyblog.de/?p=11635
Smart Grid na Medio, EPE, Rio de Janeiro (2010), 07/65-67.
Information on http://www.redeinteligente.com/
Relatrio de Audincia Pblica AP 43/2010 - ANEEL.
Information on http://convergenciadigital.uol.com.br/

IX. BIOGRAPHIES
Milthon S. Silva, was born in Cusco, Peru, on August
30, 1972. Electrical Engineer graduated at UNSAAC
University - Peru. MSc and PhD at the Polytechnic
School of Sao Paulo University - Brazil. Post-Doctoral
at Brandenburg Technological University - Germany.
Worked in construction and monitoring of substation
high voltage systems projects including renewable
energy integration by GyM S.A., GAGTD and
Siemens. At present he is professor at the Department
of Electrical Engineering in the Federal University of Sergipe Brazil
teaching Renewables Energies and Transmission and Distribution of
Power . He works in the Integration of Renewable Energies project to the
Brazilian government. Member of CIGRE Brazilian work Group SC13.23 and
Member of LatinAmerica IEEE.
Andr P. Nbrega, joined Brazilian Electricity
Regulatory Agency - ANEEL as an Advisor to the
board of directors in august 2006. He is a Senior
Power Market Regulation Specialist and occupied
different position at ANEEL as technical advisor in
the Superintendence of Economic Studies of the
Market (SEM), since 2002, and manager of the
authorization team to renewable energy, since 2000.
His main research interests include energy policies for
renewables, modeling paths toward sustainable energy systems, liberalization
of energy markets. Andre is a civil engineering graduate from Brasilia
University UnB and holds specialization in Theory and Operation of a
Modern National Economy from George Washington University. He also
attended the Eleventh International Training Program on Utility Regulation
and Strategy at Warrington College of Business, in University of Florida.
Bruno B. Anunciao, Electrical Engineering
student at Federal University of Sergipe - Brazil.
Exchange student at Polytechnic School of Marseille
University - France by Brafitec/CAPES program.
Researcher by PIBIC/CNPq program. Anunciao
has experience with Renewable Energies and
Automation and Control Systems of Power Electrical
Systems. He also has experience in optimization
models, using linear and nonlinear programming technics.