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The project entails the installation of 62,000 smart meters fitted with communication modules co-developed by Cisco, the US networking equipment firm said in a release.
Consumers will be able to track consumption levels while the technology will also streamline repairs in cases of power failures or interruptions.
Cisco's smart grid technologies are being developed at the firm's innovation center in Rio de Janeiro, opened August 2013, Cisco added.
Funding for the project is provided through Finep, a government investment agency under Brazil's science, technology, and innovation ministry.