Spotlight: EDP’s digital transformation projects in Brazil

Portuguese power company EDP is accelerating its digital transformation and automation processes in Brazil with new digital substations, smart grids and a more advanced management software.

One of the fronts where the energy group is currently working is the expansion of a private LTE network in the 250MHz band, in partnership with consultancy and integrator CelPlan, Gabriel Barbosa, control and automation engineer at EDP Brasil, told BNamericas.

CelPlan, which relies on structured cabling provided by Furukawa for the project, is responsible for managing EDP's network with telecom regulator Anatel.

The integrator was responsible for obtaining a private network license, known as an SLP, on behalf of EDP. The license was granted in 2023, initially for its concession in Espírito Santo state (EDP Espírito Santo).

Speaking on the sidelines of the Furukawa LatAm Summit 2024, held in Goiás state last week, Barbosa said the project’s second phase, comprising other municipalities and concession areas, is expected to begin soon.

He also said that, for now, the company's needs do not demand high-capacity data transmission connectivity, such as 5G.

As it is a lower frequency, the 250MHz band has a greater coverage range than those used for 5G, such as 3.7GHz, which facilitates connectivity in the countryside, according to Barbosa.

THE NETWORK

Because the interior of Espírito Santo has hilly terrain, which makes it difficult for operators to deploy antennas, the solution sought by EDP was to install its own network. Connectivity was necessary due to the high concentration of reclosers and related equipment that EDP has in the area.

Initially, the LTE network was deployed in the municipalities of Cachoeira de Itapemirim and Nova Venécia, according to the company's presentation during the Furukawa event.

The company did not disclose any investment figures related to the project.

In 2022, the latest available with annual results, EDP Brasil invested 1.6% of its net operating revenue in innovation, or 256mn reais (US$49.7mn). A quarter of this amount was allocated to R&D projects approved by Brazilian power regulator Aneel.

Overall, the Portuguese parent plans to invest US$6.75bn this year, up from US$4.4bn in 2023.

The company’s 2023-26 business plan calls for a gross investment of US$27bn, of which 52% is earmarked for solar, 45% for wind and 3% going to storage.

Of the capex projected for the period, US$4.05bn is allocated to South America (Brazil, Chile and Colombia), where 2.5GW of capacity is expected to be added.

The plan also includes around 3bn euros (US$3.25bn) for digital and innovation initiatives.

PROJECTS

Jefferson Alberto, telecom engineer at EDP São Paulo, said the company was the first in Brazil’s power sector to achieve 100% digital transformation of its substations.

In terms of distribution concessions, the group operates EDP Espírito Santo and EDP São Paulo.

In Espírito Santo, it has 111 substations, in addition to over 2,300 reclosers and 800km of fiber optics, covering 70 municipalities and over 1.7mn customers. And in São Paulo there are 74 substations, 3,300 reclosers and 400km of fiber, serving 28 municipalities and more than 2mn residents.

SOFTWARE

EDP's operations center is located in São José dos Campos, São Paulo state, and is responsible for the management of the group’s generation, transmission and distribution areas. 

The project was developed with Furukawa and Green4T technologies and completed in 2020.

At the site, the company operates its own datacenter, a tier 3 certified facility for storing and processing data.

On the software front, the group's next move involves migration from a supervisory control and data acquisition system (Scada) to an advanced distribution management system (ADMS), deemed the most advanced in the power distribution sector.

The migration, whose design began this year, is expected to kick off in 2025, said Alberto.

VENTURES

Another pillar of EDP’s digitization and innovation push involves direct startup investments through its EDP Ventures arm.

By the end of 2023, the unit had invested around 56mn reais in nine startups, with 300 professionals and over 20mn reais in revenue, according to the company's latest ESG report.

The startups are focused on tech innovation in the fields of renewable energy, distributed generation, green hydrogen, energy storage, electric mobility, decarbonization and networks of the future, among others.