Brazil Stock Guide – Brazilian power company CPFL Energia (B3: CPFE3) and telecom operator TIM Brasil (B3: TIMS3) will invest R$ 60 million in a private communications network designed to digitalize electricity distribution operations in parts of São Paulo and Rio Grande do Sul.
The project will initially connect 65 substations and around 2,500 intelligent grid devices across about 50 municipalities, covering an area of 51,000 square kilometers and serving approximately 980,000 customers, the companies said on Thursday.
TIM will deploy and integrate the telecommunications infrastructure, which will use the 450 MHz radiofrequency band to support critical operations. The system will allow CPFL’s control centers in São Paulo and Rio Grande do Sul to monitor equipment and execute remote commands in real time.
The companies said the technology should help CPFL identify faults, isolate affected sections of the grid and restore power more quickly after storms, accidents and other disruptions, reducing the need for field teams to carry out every initial intervention.
“We are building the foundation for the next generation of electricity distribution,” CPFL’s vice president for regulated operations, Luís Henrique Ferreira Pinto, said in a statement.
The network will also support the deployment of automated reclosers, voltage regulators and other smart-grid equipment, while creating infrastructure for the broader adoption of smart meters in the future.
CPFL said the locations were selected partly because stronger field communications could improve service continuity indicators, including the duration and frequency of power outages, which are closely monitored by Brazil’s electricity regulator.
The project covers areas including Franca, Miguelópolis, Sorocaba and Ibiúna in São Paulo, as well as Uruguaiana, Alegrete, Itaqui, São Borja and Santa Maria in Rio Grande do Sul.
Completion is expected by 2029. The network will have capacity to connect as many as 50,000 devices simultaneously, allowing CPFL to expand automation as electricity grids become more complex due to distributed generation, electric vehicles and energy storage.
For TIM, the agreement strengthens its position in corporate internet-of-things services and critical communications infrastructure, areas in which telecom operators are seeking growth beyond traditional mobile connectivity.
CPFL, controlled by China’s State Grid since 2017, serves about 10.7 million customers in 687 municipalities and is Brazil’s largest electricity distributor by power volumes delivered.
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