Case studies in saving electricity in Brazil
Yuri R. Rodrigues⁎; Paulo F. Ribeiro† ⁎ University of British Columbia (UBC), Vancouver, BC, Canada
† Federal University of Itajuba (UNIFEI), Itajuba, Brazil
Abstract
This chapter presents a comprehensive perspective of the application of Smart Grid technologies in Brazil. The main motivations, projects, thematics covered, amount of investment, regional distribution, and research and development activities are some of the addressed aspects. Furthermore, an overview of the Brazilian road map for Smart Grid deployment is followed by lessons learned while diagnostic and barriers obtained from previous and ongoing projects are stressed. Finally, the actual level of maturity of the Smart Grid concepts in Brazil and a discussion about the necessities of an integrated effort of government, industry, utilities, and research/academic institutions in establishing dynamic standards of good and acceptable enactments within all dimensions for a complete engagement is presented.
Keywords
Brazilian motivation; Distributed generation; Intelligent metering; Road map; Smart Grids; Lessons learned; Diagnostic and barriers
Acknowledgments
The authors thank to CAPES, FAPEMIG, CNPq, and INERGE for partially supporting this work. The first author, Yuri R. Rodrigues, especially thanks CAPES Notice No. 18/2016 of the Full Doctoral Program Abroad/ Process n° 88881.128399/2016-01.
1 Introduction—Brazilian motivation
Smart Grid (SG) deployments are motivated by the reality in which utilities are embedded along with intrinsic values such as business culture, technological and process maturity, and the current marketplace as well as the socioeconomic and environmental scenario of its concession area [1,2]. Particularly in Brazil, given the continental territorial extension, there are extremely particular socioeconomic and environmental realities in each region that require different topics to be addressed in the SG projects.
Among the motivators, saving electricity is one of the most important aspects. High levels of nontechnical and technical losses, especially in urban areas, lead to 16% of the total energy produced in Brazil not being sold, accounting for about $5 billion in annual revenue loss due to theft, billing, and metering errors [3]. This scenario drives investments in SG projects focused in loss reduction by concessionaires such as Light [4,5] and Ampla [6]. For utilities with lower losses, the investments in SG become feasible through the economic benefits provided by greater operational efficiency related to the automation of internal processes, systems management, identification of failures, and reduction of operational expenses in preventive and corrective maintenance [7,8]. Another great stimulus factor is the Brazilian potential for distributed renewable generation (DG), especially solar and wind sources, inspiring several research and development (R&D) projects [9].
Therefore, the development of SG projects in Brazil is mainly motivated by features such as an increase in operational efficiency, efficient management of assets, energy saving, monitoring, network automation, reliability, power quality, loss reduction, and DGs penetration.
These projects are financed in large part by the mandatory investments in R&D and supported by an important mechanism for the acceleration of the development of SG in Brazil: the “Inova Energia” program. This program was designed to assist in the analysis and approval of projects related to SG, integrating funding sources under the responsibility of the Brazilian Electricity Regulatory Agency (ANEEL), the Funding Authority for Studies and Projects (FINEP), and the Brazilian Development Bank (BNDES) [1].
It is estimated that more than 200 SG projects are under development, focusing on initiatives in the generation, transmission, and distribution segments. These involve approximately 450 institutions, more than 300 suppliers, 126 research centers, and 60 public service companies as well as universities, ministries, and regulatory agencies that are focusing on the deployment and implementation of aspects such as intelligent metering, distributed generation, automation, storage, telecommunication, customers services, etc. [1].
The Brazilian Association of Electric Power Distribution Companies (ABRADEE), by means of a wide-ranging study concerning distributors, institutes of science and technology (ICTs) and universities with R&D resources of ANEEL, indicates that the total investment for the implementation of SGs in Brazil may vary from R$46 billion (Reais—Brazilian currency) in a conservative scenario to R$91 billion for the accelerated one [9], as shown in Table 1.
Table 1
| Area | Accelerated | (%) | Moderate | (%) | Conservative | (%) |
|---|---|---|---|---|---|---|
| Measurement | 45.6 | 50 | 35.4 | 58 | 28.8 | 62 |
| IT measurement | 0.5 | 1 | 0.5 | 1 | 0.4 | 1 |
| Telecommunication measurement | 13.6 | 15 | 10.9 | 18 | 9.2 | 20 |
| Automation | 2.1 | 2 | 1.8 | 3 | 1.1 | 2 |
| IT automation | 1.5 | 2 | 1.5 | 2 | 1.4 | 3 |
| Telecommunication automation | 5.9 | 6 | 5.6 | 9 | 5.2 | 11 |
| Distributed generation IT/electric vehicles | 0.2 | 0 | 0.2 | 0 | 0.1 | 0 |
| Incentives distributed generation | 21.7 | 24 | 5.3 | 9 | 0 | 0 |
| Total | 91.1 | 100 | 61.2 | 100 | 46.2 | 100 |
As can be seen in the measurement area, the accelerated scenario shows a significant increase in the volume of investments, especially when compared to the conservative case, presenting an increase of R$16.8 billion. However, it should be noted that, as the scenarios evolve from conservative to moderate and accelerated, the percentage of participation tends to decline because there will be more money to apply to other areas previously without incentives due to economic restrictions.
2 Smart Grid perspective in Brazil
A comprehensive survey of the Smart Grid projects financed by the R&D Program coordinated by ANEEL, the main instrument for national research in SG, was performed by the Center for Strategic Studies and Management Science, Technology, and Innovation (CGEE) [10]. It indicates a total of 178 projects with a total investment of approximately R$411.3 million. The major concentration of resources and number of projects occur in the Southeastern and South regions of Brazil. São Paulo and Santa Catarina are the most engaged federative units in the development of Smart Grid projects, leading the number of projects. The uneven distribution of projects is driven by socioeconomic and environmental aspects, especially urbanization, industrialization, and population density indexes.
Fig. 1 illustrates the regional distribution of Smart Grid projects cataloged by ANEEL. The described numbers refer to the total projects developed in specific states while the overall costs in R$ million per region are depicted in Fig. 2.
The main areas addressed by the Smart Grid projects developed in Brazil are represented by the following topics:
- • Automated metering infrastructure, including intelligent metering systems, new models, and tests of new functionalities (AMI).
- • Automation of the distribution and substations, including supervision systems of the electricity distribution networks (AD&S).
- • Distributed Generation, microgeneration, and microgrids (DG).
- • Distributed storage and battery systems (DS).
- • Plug-in Hybrid Electric Vehicles, including charging and supervision systems (PHEV).
- • Telecommunications for Smart Grid systems (Telecom).
- • Information Technologies for Smart Grid systems (IT).
- • Intelligent buildings and residences, including consumer interaction (IB&R).
- • New services for the final consumer—gas and water services measurement, security, communication services, and energy efficiency strategies (CSM);
- • Others—relationship with clients, IP, cyber security, management of assets, etc. (others).
A perspective of the investment in R$ million per thematic area of the Smart Grid projects is shown in Fig. 3. The average value of the projects is R$1.89 million. The “Distributed generation” thematic is the one with the highest number of projects, the largest amount of investment, and higher than average project values; a segmentation of the investments per DG source type is featured in Fig. 4. Another thematic of great interest is the “Automation of the distribution and substations.” It has the same number of projects but with about half the values invested. The themes with the largest granted values in a project are “Intelligent buildings and residences” and “Telecommunications” [10].
A summary table presenting the number of Smart Grid projects under development and the amount of investment associated per Brazilian region and thematics addressed is depicted in Table 2. One can see that the projects are focused on more immediate aspects such as smart metering and distributed generation while initiatives such as PHEVs, smart buildings, and new services are not widely covered, especially in the less urbanized middle and north regions. In addition, it is possible to note that the southeast region has the largest volume of projects, investments, and covered thematics, which is directly related to its socioeconomic reality and requirements.
Table 2
| Thematic | Brazilian regions | Total of projects | Total investment | |||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| M | N | NE | S | SE | ||||||||
| NP | Invest. | NP | Invest. | NP | Invest. | NP | Invest. | NP | Invest. | |||
| AMI | 1 | 1.145 | 2 | 4.391 | 5 | 3.854 | 5 | 2.889 | 7 | 16.763 | 20 | 29.042 |
| AD&S | 1 | 541 | 10 | 12.714 | 11 | 7.685 | 16 | 33.607 | 38 | 54.547 | ||
| DG | 1 | 787 | 1 | 318 | 6 | 9.631 | 12 | 13.164 | 18 | 76.708 | 38 | 100.608 |
| DS | 3 | 2.236 | 4 | 10.342 | 7 | 12.578 | ||||||
| PHEV | 5 | 9.838 | 5 | 9.838 | ||||||||
| Telecom | 5 | 8.062 | 6 | 4.834 | 12 | 30.337 | 23 | 43.233 | ||||
| IT | 1 | 1.065 | 3 | 4.322 | 5 | 2.524 | 7 | 19.903 | 16 | 27.814 | ||
| IB&R | 1 | 1.73 | 7 | 10.356 | 8 | 19.57 | 16 | 31.656 | ||||
| CSM | 1 | 490 | 1 | 490 | ||||||||
| Others | 1 | 1.232 | 1 | 21.793 | 3 | 3.057 | 1 | 441 | 8 | 74.964 | 14 | 101.487 |
| Total | 3 | 3.164 | 6 | 28.108 | 33 | 43.37 | 50 | 44.129 | 86 | 292.522 | 178 | 411.293 |
3 Main Smart Grid projects in Brazil
In Brazil, Smart Grid projects are more concentrated at the distribution system level because this is the segment most affected by the changes arising from this new concept, especially by the enabling capability of new products and services for the final consumer.
In this section, the 11 main Smart Grid pilot projects in Brazil that comprise an estimated/realized investment of more than R$200 million will be discussed, evaluating the thematic developed, volume of investment, suppliers, and centers of research development and innovation (CRD&I) participation [1,11] as well as an offshore venture in the northeast region of the Archipelago of Fernando de Noronha. These projects and the responsible utilities are illustrated in Fig. 5.
3.1 Cities of the future
The pilot project Cities of the Future is an initiative of CEMIG distribution and one of the most comprehensive Brazilian programs for the implementation of Smart Grid architecture, due to the diversity of thematic and socioeconomic aspects involved. The main objective is the establishment of a functional reference model to support future large-scale deployment decisions. In this sense, technical, regulatory, financial, and customer perception aspects are equally evaluated, with emphasis on an extensive experimentation of several possible technologies. Methodologically, the project also accesses the impacts on CEMIG's business processes, the smart grid's value chain, and the training required for professionals who will deal with these new technologies.
The site selected is a great representative of the concession area of CEMIG, housing urban and rural residential, commercial, and industrial consumers, covering 8000 consumers in a region with 23,000 km of network consisting of two substations and eight feeders. The project started in 2010 with a contribution of R$25.3 million (ANEEL R&D resources). Its efforts are focused on the automation experimentation of substations and distribution networks, intelligent metering, operational communication networks, management systems, and saving electricity practices such as LED lighting systems, management and integration of distributed generation, and the relationship with the consumer. The thematics addressed in this initiative are represented in the following topics [7,12–14]:
- • Intelligent Measurement Systems: There are 4200 smart meters installed in low voltage networks, including functions such as: power quality, notification of failures and instabilities, disconnection and reconnection, energy balancing, and application of differentiated tariffs. For last-mile communication, two strategies were adopted. The first set of smart meters (about 3000 consumer units) was employed RF Mesh while the second group (about 1200 consumer units) was applied by PLC technology.
- • Automation of Distribution: The project covers fault location, isolation and supply restoration (FLISR), Volt-VAr control, and temperature monitoring in distribution transformers. The adopted FLISR solution allows remote reconfiguration of 30 points by the operator, using the DNP3 protocol for communication with 30 automatic reclosers, five medium voltage meters, and four fault sensors. The Volt-VAr control solution includes automation of eight capacitor banks in the network to optimize voltage levels.
- • Distributed Generation: The project covers two initiatives: the implementation of distributed solar microgeneration in low voltage consumer units in the city of Sete Lagoas and the integration of the 3 MW photovoltaic solar plant.
- • Storage Systems: Integration of an energy storage system of 100 kW with a solar photovoltaic plant of 50 kW.
- • Plug-in Hybrid Electric Vehicles: Study of the impact of PHEVs on the electric grid by the incorporation of another R&D project.
- • Telecommunications: Implementation of a multiservice communications network to support intelligent distribution and measurement automation applications. Use of a variety of technologies for the backhaul segment: radio, fiber optics, satellite, and GPRS.
- • Information Technology: In the IT thematic a computational topology integrated with the Meter Data Management System (MDM) interfaces with the central systems to support the processes of operation and the implementation of tools for interaction with customers.
- • Others: Public lighting—installation of LED lighting systems. Customer Relationship—development of tools for customer interaction such as websites, apps, and communication strategies according to the customer profile based on marketing research. Other initiatives include feasibility studies, process improvements, house automation, cyber security, data privacy, and SG planning.
3.2 Eletropaulo Digital
The Eletropaulo Digital project is the largest SG project in Brazil, including 60,000 customers translated to about 250,000 inhabitants impacted. With an investment of more than R$70 million, it intends to transform Barueri in the first municipality in the metropolitan region of Brazil, giving it an intelligent energy distribution network. Eletropaulo Digital is structured in a living lab concept of demonstration and deployment. The main objective is to implement infrastructures, applications, and SG functionalities that will lead to energy saving and customer satisfaction while surpassing market and strategic operational challenges.
The Barueri region is in frank expansion, possessing a diversified customer profile (residences, commerce, and industries) that provides a consistent sample of the AES Eletropaulo concession area. The site has high load density and urban complexity characteristic of a large metropolis, requiring several innovative technological solutions in measurement, automation, and telecommunication thematics, and specific metrics of evaluation to guide the concept expansion to the rest of the concession area's technological and strategic road map.
Associated with the Eletropaulo Digital SG initiative, an integrated project aiming to develop the energy metering and balance equipment to be installed in the Eletropaulo Digital project was also deployed by AES Eletropaulo. The project has an investment of about R$44 million, being based on previous R&D developments in the innovation chain and the pioneer lot of energy metering and balance systems. Another company, SG initiative, is held in the intelligent metering thematic in the Ipiranga region of São Paulo. The project proposes to employ remote measurement integrated with automation solutions for 2000 clients as well as energy balance technologies.
The Eletropaulo Digital project intends to deploy and develop the following SG thematics [15]:
- • Intelligent Measurement Systems: Implantation of intelligent measurement solutions for 60,000 customers in the city of Barueri. These intelligent meters will be developed in association with selected manufacturers, including energy balancing capacity and last mile communication by PLC and radio-frequency technologies. This module aims to enable communication, alternatively or cooperatively, in a mesh network topology.
- • Distribution Automation: The demonstration project foresees the installation of local fault detection solution in aerial distribution networks, able to send information about the event to the operation center and other systems of interest. Self-healing solutions are also planned to be implemented to locate and isolate faults as well as the reestablishment of service through network reconfiguration. Other initiatives include Volt-VAr control in substations and generation units, and the development of a website and mobile app linked to the SCADA system for real-time operational information.
- • Distributed Generation: A theoretical and comprehensive study of the impact of distributed generation on the utility distribution network is featured.
- • Plug-in Hybrid Electric Vehicles: Preparations are taken to accommodate PHEV insertion. An associated project using PHEVs as taxi units is also presented.
- • Telecommunications: The project uses a WiMAX network to perform the communication of distribution automation equipment and meter's last-mile integration.
- • Information Technology: The utility is deploying a distribution management system (DMS), an outage management system (OMS), and mobile workforce management (MWM) software. Their combination allows the identification of an event's location by the analysis of the information received through the call center, optimizing the mobile workforce displacement and monitoring the service until its conclusion. The project also foresees the penetration of smart metering, executing preparations in data collection and measurement systems (MDC and MDM), billing, and hardware and software solutions for big data analytical applications.
- • Buildings and Intelligent Residences: The project contemplates the creation of a Smart Home considering the concept of energy management and advanced measurement infrastructure (AMI), which allows bidirectional energy and information flows. It seeks a greater relationship and interaction between company and consumer as well as consumer engagement and dissemination of SG functionalities as demand response, residential microgeneration, and PHEV units’ integration to intelligent devices.
- • New Services: The Project foresees the study of new services and business models associated with SG functionalities to the end customer.
- • Others: Customer interaction—development of tools for interaction with customers such as websites and mobile apps, based on the perception assessed through surveys. Multiutility—SG integration with other public services (water, gas, telecommunication utilities). Workforce training—development of training initiatives for technicians on SG concepts and technologies. KPIs—development of metrics for SG benefit evaluation. Road map—development of a road map for the expansion of the SG initiative through the utility concession area.
3.3 Smart Grid Light
The Smart Grid Light Program is a set of SG research and development (R&D) projects with new automation and measurement technologies applied from distribution networks to customers’ homes. The initiative includes the implementation of intelligent meters with load-shedding and switch functions in approximately 400,000 consumer units, the automation of 1700 underground chambers, 1200 reclosing switches, and the implementation of a communication network and computational systems to support the applications [4].
It is composed of five related projects addressing the topics of intelligent energy metering, digital certification, new tariffs, products and services (including prepayment), distributed generation insertion, island mode operation, distribution network automation, energy saving policies such as residential automation (i.e., intelligent outlets), demand side management, channels for customer interaction, and a recharging systems for PHEVs. These products are under development to extend the concept of SG into the company's concession region. The Smart Grid Light Program initiative includes the following SG themes [4,5]:
- • Intelligent Measurement Systems: Two types of measuring equipment were developed: a meter with a built-in reader for installation in residences and a remotely readable meter for installation of equipment on poles. The equipment perform real-time consumption monitoring, provides suggestions for energy saving, and schedules events in the electricity grid. The communication interface adopted is the ZigbeePRO open standard, with the expectation that about 2000 m will be installed by 2023.
- • Automation of Distribution: The project aimed to develop real-time network diagnoses with autoreconfiguration functions using proprietary protocols with the implementation of 1200 automatic reclosers and 1700 underground transformer chambers.
- • Distributed Generation: Installation of photovoltaic panels and energy storage systems in 10 consumer units.
- • Storage Systems: Integration of an energy storage system with photovoltaic panels.
- • Plug-in Hybrid Electric Vehicles: Development of intelligent recharging stations for PHEVs.
- • Telecommunications: Standards with redundancy in concentrators, protocols of transport based on TCP/IP, and traditional communication technologies that must be applied according to the specificities of each region were adopted. Among the options considered are Wi-Fi Mesh, GSM/GPRS, and Satellite.
- • Information Technology: Provide synergy through the interoperability between the standards, allowing the various products present in the project to interact efficiently and at reduced cost.
- • Buildings and Smart Homes: Development of smart outlets that can be remotely controlled by customer interaction tools.
- • Others: Innovative channels of interaction—in addition to the remote displays of smart metering, some consumers will be able to monitor consumption through other communication media such as cell phones, TVs, and apps providing friendly and dynamic interfaces through analytical charts and advanced reports.
3.4 Parintins Project
The Parintins Project is a Smart Grid initiative developed in the interior of the state of Amazonas by Eletrobras. Similar to the Cities of the Future project, it seeks the establishment of a functional Smart Grid project to work as a reference model for energy distribution companies.
The initiative planned to perform demand peak shaving by stimulating consumption outside peak demand periods through the application of differentiated rates during the day. For this sake, all electric power meters of Group B (residential and commercial consumers) were replaced; Group A (large customers connected at high voltage) were not altered. The project also aimed at the evaluation of distribution automation applications along with the measurement and monitoring of transformers.
The following smart grid functionalities were addressed [16]:
- • Intelligent Measurement Systems: The project provided the deployment of 14,500 smart meter units with the measurement of electrical variables, mass memory, remote connection/disconnection and communication. Because the project seeks the establishment of an SG reference model for the Eletrobras group of concessionaires, different communication technologies were tested (Point-Multipoint 450 MHz, Zigbee 2.4 GHz, MESH 900 MHz, and PLC) with the city divided into four large areas. The project discontinued the first two technologies because of economic and technical aspects. Another topic addressed is the installation of metering systems in distribution transformers for energy balance, fault identification, and determination of quality indicators. These devices are expected to be installed in about 300 transformers with DigMesh, Zigbee, and Satellite communication methods.
- • Automation of Distribution: The project accounts for the installation of 16 automatic reclosers.
- • Distributed Generation: The project provides for the installation of a 120 kWp photovoltaic system, equivalent to 40 consumers, with remote connection and disconnection control to monitor the impacts of distributed generation on the grid.
- • Telecommunications: The last-mile data are transported by the Internet, with its expected migration to the Backhaul radio network. To transport data to the measurement center, a satellite link is employed.
- • Information Technology: Development of a Measurement Center with the implementation of the Measurement Data Collection System (MDC) and MDM.
- • Buildings and Smart Homes: It was planned to install a consumption management system, particularly air conditioning control. This initiative was abandoned due to the incompatibility of the equipment installed and clients’ technologies.
- • Others: Public Lighting—installation of LED technology to evaluate its feasibility in the replacement of conventional lighting. Customer Relationship—development of a website and mobile application for energy bill monitoring.
3.5 Búzios Intelligent City
The Ampla utility demonstration project Búzios Intelligent City is held in a coastal tourist region of Brazil. It contemplates a substation with four feeders supplying 10,000 consumer units. The project aimed at learning about the operation, infrastructure, costs, socioenvironmental, and service quality impacts as well as distribution automation, renewable generation, electric mobility, public lighting, energy storage, smart buildings, and citizen awareness.
The initiative of the Búzios Intelligent City project contemplates the following Smart Grid thematic [6]:
- • Intelligent Measurement Systems: Installation of 10,000 smart meters, with last-mile communication by GPRS, PLC, and RF MESH.
- • Automation of Distribution: Use of 17 motorized switches distributed in the four feeders.
- • Distributed Generation: Installation of nine solar panels of 5 kWp, four wind turbines with vertical axis of 2 kW, and one with horizontal axis of 1 kW.
- • Storage Systems: The installation of a 200 kW storage system for two-stage testing is proposed: an internally controlled network and the Ampla network.
- • Plug-in Hybrid Electric Vehicles: This considers the participation of 4 PHEVs, 40 electric bicycles, and a small electric boat.
- • Telecommunications: To transmit the data from last mile-networks, a optical fiber link is used. The automation data is transmitted by point-multipoint radio communication up to the substation level and then by a optical fiber link to the Operation Center.
- • Information Technology: Implementation of automation system and medium voltage network telecontrol.
- • Buildings and Intelligent Residences: Intelligent building pilot with the provision of power and energy control platform for 20 consumers.
- • Others: Public Lighting—installation of 130 LED luminaries, of which 40 have intensity control and an experimental hourly rate for low voltage.
3.6 Fernando de Noronha Archipelago Smart Grid project
The Archipelago Fernando de Noronha Smart Grid project developed by CELPE is held in the Island of Fernando de Noronha, an ecological reserve with several environmental restrictions. The objective of the project is to develop and implement an SG concept including technological resources for network automation, telecommunication, measurement, distributed microgeneration, energy quality, recharge of PHEVs, and differentiated tariffs. A particularity that must be highlighted of this SG initiative is the evaluation of the thematic viability under the sustainability aspect.
The SG thematic developed at Fernando de Noronha Archipelago initiative are discussed as follows [17,18]:
- • Intelligent Measurement Systems: Installation of intelligent metering in 831 consumer units of Group B (residential and commercial consumers) featuring measurement in four quadrants, remote disconnection and reconnection, energy balance, load profile acquisition, and identification of failures. The adopted solution uses an open communication protocol, multivendor interoperability. and PLC for last-mile communication.
- • Distribution Automation: Deployment of decentralized automation solution in three feeders through the installation of reclosers and fault locators.
- • Distributed Generation: Installation of solar and wind distributed generation.
- • Storage Systems: Association of storage system to a microgeneration.
- • Plug-in Hybrid Electric Vehicles: Implantation of PHEV recharging service by renewable generation disconnected from the grid.
- • Telecommunications: A hybrid network using optical fiber and radio communications for automation and intelligent metering, and WiMAX and RF MESH technologies for unlicensed frequencies.
- • Others: Public Lighting—control and remote management system for LED and induction lamps. Submeasurement—assessment of submeasurement technology and identification of the active consumer practices.
3.7 InovCity project
The InovCity project is a partnership between EDP Bandeirante and the Portuguese intelligent city of Évora, an associated of the EDP Group. The project is located at the city of Aparecida do Norte—SP aiming to analyze the feasibility of a set of energy-saving technologies that will provide greater efficiency and quality to customer services. It works as a living lab for the testing of intelligent measurement, the vehicle recharging process, microgeneration, energy efficiency, network automation, telecommunications, customers’ interaction, and regulation measures such as dynamic tariffs, prepayment, micro and mini tariffs, and residential automation practices. A second phase, the InovCity II project, takes place at the federative unit of Espirito Santo being held by ESCELSA, a utility of the EDP Group. It seeks an improvement in customer services such as smart metering, efficient public lighting, microgeneration with renewable energy sources, electric transportation, and energy efficiency actions.
The following Smart Grid themes are covered [19,20]:
- • Intelligent Measurement Systems: EDP Bandeirante in partnership with Ecil is committed to the development of smart metering equipment scheduled to be deployed in 5 years and three phases. Phase 1, initial deployments. Phase 2, expansion of the initially deployed and integration of the web portal and new tariff options. Phase 3 will address actions related to energy storage and energy saving. It is projected that the project will include the installation of 15,300 intelligent electronic meters at low voltage, (2000 single-phase, 12,000 biphase, and 1300 three-phase). Approximately 120 concentrators equipped with ZigBee technology should centralize customer measurements.
- • Distribution Automation: Network automation with remotely controlled reclosers.
- • Distributed Generation: Development of solutions that allow customers with microgeneration to expand their benefits.
- • Plug-in Hybrid Electric Vehicles: Promotions and incentives for the use of PHEVs associated with the installation of recharging stations.
- • Telecommunications: The topology implemented employs a combination of GPRS and the WiMAX network.
- • Information Technology: A management system responsible for telemetry collection, solution management, and presenting a component's status of operation is featured.
- • Others: Public Lighting—use of LEDs and energy management systems. Consumer Interaction—interface with other R&D projects aimed at evaluating consumer reactions to new technologies such as energy management systems. Differential rates—test and research with consumers on different tariffs including prepayment, dynamic tariffs, and tariff flags.
3.8 CPFL Smart Grid
The CPFL Group is focused in the development of automation projects in its feeders and substations in order to reduce the displacement of teams and the promotion of faster supply restoration. Also of interest is smart measurement for remote data collection of the energy consumed by distribution customers of Group A (large customers connected at high voltage) and Group B (residential and commercial consumers), along with distributed generation, PHEVs and workforce management. The main objective of this project is to enable remote operation by the company's distribution systems, such as automatic reconfigurations by the displacement of telecontrolled switching devices.
The initiative addresses the development of the following Smart Grid thematic [8]:
- • Intelligent Measurement Systems: A proof-of-concept phase proposes the installation of 25,000 intelligent meters of Group A and Group B meters connected by an RF Mesh communication network.
- • Distribution Automation: It seeks the standardization of the feeder and substation automated systems. These systems will operate in synchronization with mobility teams to increase the efficiency of occurrence attendance by the company as well as allowing faster and more efficient maneuvers to restore supply. This includes the installation of 5000 telecontrolled switches enabling the network to be divided into 250,000 microgrid schemes with automatic reconfiguration.
- • Distributed Generation: Implementation of a solar power plant of 1.6 GWh/year with investment provided by ANEEL R&D.
- • Plug-in Hybrid Electric Vehicles: Several PHEV initiatives through R&D projects are featured.
- • Telecommunications: A hybrid communication network with proprietary RF MESH and public GPRS network is adopted.
- • Information Technology: Implementation of MDC, MDM, and workforce management systems.
- • Others: Workforce management—allows service orders to be issued electronically in order to dispatch the best positioned team to perform network services.
3.9 Aquiraz Smart City
The COELCE demonstration project Aquiraz Smart City seeks the automation of the local electric system. The site selection was influenced by the existence of an automated substation, the network structure, and load displacement. In the context of smart metering, a pilot project was deployed in Fortaleza with the installation of 100 intelligent meters and data concentrators at transformers.
The following Smart Grid themes are addressed [21]:
- • Distribution Automation: All reclosers installed in the region are automated.
- • Telecommunications: Radio communication network deployed and tested.
- • Information Technology: Implantation of SCADA system associated with an automatic recomposition system and automatic protection settings.
3.10 Paraná Smart Grid pilot
The particularity of this project developed by COPEL is the link to a state program. The Smart Energy Paraná program was defined by the State Decree n. 8842/2013 [22], including the participation of a governmental entity along with the water and gas companies Compagas and Sanepar for an integrated measurement cooperation. The project was establishment in an area of high density of load and visibility, with the following Smart Grid functionalities under development [23]:
- • Intelligent Measurement Systems: The project foresees the integrated measurement of water and gas in two implementation phases. The first phase has approximately 2000 m including 487 gas and 64 water meters. This is followed by the completion of installation of approximately 10,000 m.
- • Distribution Automation: The pilot includes remote-controlled switches for automatic reconfiguration and a self-healing strategy with four switches and two reclosers installed. Other subthemes include fault sensing, DNP3 application, Volt-VAr control, and network reconfiguration.
- • Distributed Generation: Installation of solar panels with a capacity of 1.4 kW.
- • Storage Systems: Testing of a storage system in association with a solar photovoltaic generation.
- • Plug-in Hybrid Electric Vehicles: On an experimental basis, a PHEV taxi was developed in an R&D project involving the utilities COPEL and Itaipu Binacional, Institute of Technology for Development, Fiat, and other private companies. This project employs the recharging station located at Curitiba International Airport to perform studies of the impact of PHEVs and battery use on the electric power system.
- • Telecommunications: Optical fibers were used for communication between the company's headquarters, field switches, and metering concentrators. Also, GPRS technology for Group A consumers and multipoint RF technologies and MESH for Group B consumers reading was employed.
- • Information Technology: Implementation of a network recomposition system and cybersecurity studies were considered.
- • Buildings and Intelligent Residences: Test of the house of the future including automation, microgeneration, energy storage, and electric mobility.
3.11 Elektro Smart Grid project
The objective of the pilot is to deploy and test SG technologies in the touristic city of São Luiz do Paraitinga in order to evaluate the main impacts on the technical-operational processes and changes in the patterns of consumption implied by the new services and products enabled. At the end, it is expected that this will achieve better energy savings by the rational use of energy and energy efficiency policies [24].
In addition to this Smart Grid demonstration project, Elektro has several R&D projects related to SG in the areas of distribution automation, distributed generation, PHEVs, and customer interaction.
3.12 Summary of the 11 Smart Grid projects
A summary of the thematics covered in the main Smart Grid projects developed in Brazil and discussed previously is shown in Table 3. Further, a comprehensive perspective of these projects is illustrated in Table 4.
Table 3
| Thematic | Cities of the future | Paraná Smart Grid | CPFL Smart Grid | Eletropaulo Digital | Búzios Intelligent City | Smart Grid Light | Parintins | Fernando de Noronha SG Project | Inovcity | Aquiraz Smart City | Elektro Smart Grid project |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Intelligent Measurement Systems (AMI) | x | x | x | x | x | x | x | x | x | ||
| Automation of Distribution (AD&S) | x | x | x | x | x | x | x | x | x | x | x |
| Distributed Generation (DG) | x | x | x | x | x | x | x | x | x | x | |
| Storage Systems (DS) | x | x | x | x | x | x | |||||
| Plug-in Hybrid Electric Vehicles (PHEV) | x | x | x | x | x | x | x | x | x | ||
| Telecommunications (Telecom) | x | x | x | x | x | x | x | x | x | x | x |
| Information Technology (IT) | x | x | x | x | x | x | x | x | x | x | |
| Buildings and Intelligent Residences (IB&R) | x | x | x | x | x | ||||||
| New Services (CSM) | x | x | x | x | |||||||
| Others | x | x | x | x | x | x | x | x | x |
Table 4
| Project name | Utility | Thematic | Investment (R$ mi) | CRD&I | Technology solutions suppliers | International partners | Related international projects |
|---|---|---|---|---|---|---|---|
| Cities of the Future | CEMIG | AMI, AD&S, DG, DS, PHEV, Telecom, IT, Others | 215 | CPqD, FITec, FAPEMIG, UNIFEI | Landis + Gyr, Cemig Telecom, Ativas Data Center, Axxiom, Concert, Solaria (Spain) | N/A | |
| Paraná Smart Grid | COPEL | AMI, AD&S, DG, DS, PHEV, Telecom, IT, IB&R, CSM, Others | 350 | UTFPR, UFPR, PUC-PR | Arteche, Cooper, ABB, Siemens, Exalt, Ecyl, Lupa, FIAT, GE, Itron, Landis + Gyr. Chantex, CP Eletrônica, Emera, Smartgreen | N/A | |
| CPFL Smart Grid | CPFL | AMI, AD&S, DG, DS, PHEV, Telecom, IT, Others | 215 | (Note: without CPD&I’s) | IBM, Silver Spring | ||
| Eletropaulo Digital | AES Eletropaulo | AMI, AD&S, DG, PHEV, Telecom, IT, IB&R, CSM, Others | 89 (18 R&D Eletropaulo + 72 ANEEL) | FITec, USP, (ENERQ), CPqD | Synapsis Brasil Ltda. | AES Grupo AES Brasil Corporation - | |
| Búzios Intelligent City | AMPLA | AMI, AD&S, DG, DS, PHEV, Telecom, IT, IB&R, Others | 41 (18 R&D ANEEL + 22 AMPLA) | COPPETEC, UFF, UFRJ, LACTEC, UERJ | Landis + Gyr | ENDESA (Spain), ENEL (Italy) | Smart City Málaga, Smart City Barcelona, Smart City Santiago |
| Smart Grid Light | LIGHT, CEMIG | AMI, AD&S, DG, DS, PHEV, Telecom, IT, IB&R, Others | 35 | CPqD, Lactec, Inmetro and Universities | Axxiom Soluções Tecnológicas, CAS Tecnologia S.A. | ||
| Parintins | ELETROBRÁS | AMI, AD&S, DG, Telecom, IT, IB&R, Others | 21 | CPqD, UFF, UFMA, CETEL (UFRN) | Elo | N/A | |
| Fernando de Noronha Archipelago Smart Grid project | CELPE | AMI, AD&S, DG, DS, PHEV, Telecom, IT, Others | 18 | CPqD, UFPE, UPE (POLI) | RAD Data Communications (international supplier) | IBERDROLA | Projects STAR and BIDELEK (Cities of Castellón and region of Bilbao, Portugalete e Lea-Artibai) |
| Inovcity | EDP BANDEIRANTE | AMI, AD&S, DG, PHEV, Telecom, IT, CSM, Others | 10 | USP, FUSP | ECIL Energia | EDP | Évora InovCity |
| Aquiraz Smart City | COELCE | AD&S, Telecom, IT | 1.66 | UFC, IFCE, UNIFOR, | Synapsis Brasil Ltda. | ENDESA (Spain), ENEL (Italy) | Only DA parcel (self-healing) |
| Elektro Smart Grid project | ELEKTRO | AD&S, DG, PHEV, Telecom, CSM | 18 | UNESP, USP São Carlos, PUC Rio, FITec | Siemens, Beckhoff, Elipse, Advantech | IBERDROLA (Spain) | Projects STAR and BIDELEK (Cities of Castellón and region of Bilbao, Portugalete e Lea-Artibai) |
The presented table indicates for each project the responsible utility, the main thematic covered, the total investment, the involved centers for research development and innovation (CRD&I), and the suppliers as well as partnerships and related projects. In association with this wide-ranging perspective of Smart Grid deployment in Brazil, another important aspect is related to the level of maturity of these utilities. Hereafter, a classification into four groups of utilities based in terms of SG operations is presented in Fig. 6. Where:
- • Beginner—utilities starting SG activities working up to three thematics.
- • Researcher—concessionaires working in more than three SG thematics but that do not have demonstration projects.
- • Demonstration—concessionaires that have demonstration projects in progress integrating most of the SG areas of operation.
- • Pioneer—utilities with demonstration projects completed or in progress and that are planning to continue SG initiatives, including road maps and new areas for deployment and/or R&D projects.
The segmented classification emulates a natural flow where beginners start to research, researchers implement demonstration projects to validate their propositions, and, if motivation is found, a smart grid becomes a natural business strategy that is continued by pioneers [1]. In this sense, acceleration mechanisms such as the “Inova Energia” program are essential for a faster transition of utilities between these segments.
4 Centers for research development and innovation (CRD&I)
The main developments of Smart Grid initiatives in Brazil have been performed by R&D projects financed by the ANEEL R&D program resources. According to the Brazilian Industrial Development Agency (ABDI), these projects involve 450 institutions in the execution of activities ranging from basic research aimed at demonstration projects and equipment development in various stages of the innovation chain as pioneer and market insertion [26]. Among these institutions, there are 126 entities that can be characterized as centers of research, development and innovation (CRD&I). These entities are nonprofit organizations comprised of institutes, foundations, associations, and private and public academic entities of the federal, state, and municipal level [1] that work autonomously and in partnerships with specialized consulting institutions in the development of R&D projects.
Their participation has been determinant in the evolution of the application of the Smart Grid concept in Brazil because, among the 11 main SG demonstrative projects in the country, 10 have the participation of at least one national CRD&I [26]. Among the Brazilian research institutions, at least 80 are involved in R&D activities in SG, accounting for about 64% of the country's CRD&Is.
Their fundraising portfolio contemplates government resources at the federal, state, and municipal level, that is, the Financier of Studies and Projects (Finep) ANEEL R&D program and the National Council for Scientific and Technological Development (CNPq) as well as indirect financing through foundations, investment banks, tax benefits, and investment from other nations [25,26].
CRD&I actuation covers all research areas of SG, with an emphasis on Photovoltaic Distributed Generation (DG) and Distribution Automation, which have approximately 56% and 48% of the country's entities acting in these research lines. Instead, important research lines such as intelligent measurement, intelligent buildings, consumer services, and storage systems have incipient deployment with indexes below 25% [26,27].
In Fig. 7, a summary of the CRD&I participation index in Smart Grid research lines is presented. A picture of the number of CRD&Is involved in the main SG thematic developed in Brazilian projects is shown in Fig. 8.
In order to assess CRD&I significance in the development of the SG concept in Brazil, an investment-raising classification based on their annual revenues is presented in Table 5. It is possible to observe that there are a reasonable number of large and medium-sized research centers with a significant amount of investment raised to the development and deployment of SG thematics.
Table 5
| Specialized research centers in SG (CRD&I) | Annual revenues (in R$ mi) | Size (BNDES) |
|---|---|---|
| Center for Research and Development in Telecommunications (CPqD) | 300 | Large |
| Electrical Energy Research Center (CEPEL) | 210 | Large |
| Institute Eldorado | 103 | Large |
| Institute of Technology of Paraná (TECPAR) | 100 | Large |
| Institute of Technology for Development (LACTEC) | 71 | Average |
| Foundation Centers of Reference in Innovative Technologies (CERTI) | 60 | Average |
| Cesar Institute | 60 | Average |
| Foundation for Technological Innovations (FITec) | 50 | Average |
| Atlantic Institute | 25 | Average |
| Renato Archer Information Technology Center (CTI) | 12.5 | Small |
To contextualize the impact of CRD&I activities in the development of the Smart Grid concept in Brazil, a summary of the nationalization index of some of the main Smart Grid thematics and their related products is presented in Table 6. One may note that AMI, AD&S MSD, and Residential & Commercial management solutions are significantly developed by national suppliers and CRD&I institutions. For generation and transmission automation (AG&T) and prosumer access network (PAN) thematics, a medium rate of nationalization is featured, with an expected accelerated increase in development while DG initiatives are in the beginning of the nationalization process.
Table 6
| Supply chain | Products | Nationalization index (Brazil) |
|---|---|---|
| Advanced Measurement Infrastructure (AMI) | Group A Smart Meter Group B Intelligent Meter Intelligent Border Meter and Free Customers Meter Communication Device Router/Data Hub (network) Meter Communication Gateway (MDC) Communication Equipment (GPRS, Mesh, PLC, Satellite, Radio, Fiber, WiMax, etc.) | High |
| Automation of Distribution and Substation (AD&S) | Field Recloser/Feeder Circuit Breaker Capacitor Bank Voltage Regulator Voltage-Current Sensors Field Transformer Power Transformer (substation) Volt/VAr Control Disconnect Switch Automatic Switch PMU Device (Synchrophasor) Field Communication Equipment (GPRS, Mesh, PLC, Satellite, Radio, Fiber, WiMax, 3G, LTE, etc.) Substation Communication Equipment (routers, switches, media converters, etc.) Devices/Substation Elements (IED, sensors, IR cameras, etc.) | High |
| Business/Commercial Management (software) | Power Management System (PMS) SCADA Distribution Management System (DMS) Energy Interruption Management System (EIM) Geographic Information System (GIS) Mobile Service Dispatch System (MSD) Network Asset Management System (NAM) Distributed Energy Resources Management System (DERM) Wide Area Monitoring and Control (WAMC)/Synchrophasor Management System Meter Data Management System (MDM) Applications (commercial losses, technical losses, etc.) Analytical Data (mining, processing, display/dashboard) Information Management System of the Subscriber (IMS) Billing | High |
| Mobile Service Dispatch (MSD) | Mobile Communication Device Tablet/Notebook MSD Management Software installed on the Mobile Device | High |
| Prosumer Access Network (PAN) | Residential Energy Management (HEMS) Commercial/Building Energy Management (CEMS) Industrial Energy Management (IEMS) Smart Gateway/Gateway Smart Display Smart Thermostat Energy Services Device (ESI) (interface, router, gateway) Power Management Applications by Smartphone, Tablets, etc. Submeter Smart Charges Home Appliances Demand Response Control Devices (interface, communication, etc.) Connected Business Devices (elevators, motors, etc.) Industrial Displays (Engines, etc.) Prossumidor Communication Equipment (Mesh, PLC, WiFi, etc.) | Medium |
| Generation and Transmission Automation (AG&T) | PMU (device)/PDC (collector)/Synchrophasor Sensors High Voltage Direct Current Systems (HVDC) Flexible AC Transmission Systems (FACTS) | Medium |
| Distributed Generation (DG) | Residential Grid-Tie Inverter (DG)—250 W–10 kW Commercial Grid-Tie Inverter (DG)—up to 10 kW (up to 1 MW) Industrial Grid-Tie Inverter (DG)—up to 50–100 kW (up to 1 MW) Intelligent Inverter for Electric Vehicle (PHEV) Smart Battery DC Combination Box (DG) Smart Meter Net Metering Intelligent Load Controller (DG, DS, IPHEV) Communication Devices (DG, DS, IPHEV) Network Controller (DG, DS, IPHEV) Communication Devices (DG, DS, IPHEV) Intelligent Load Control Devices/Demand Response (DR) | Low |
Based on ABDI, iAPTEL, Mapping of National Suppliers and their Products and Services for Intelligent Electrical Networks (REI): Executive Summary (Preliminary), June 2014 (in Portuguese).
5 Smart Grid roadmap—Brazilian case
In recent years, the SG concept has been implemented in several scales and initiatives in Brazil, with much of the hardware already tested and approved, albeit in isolation. In this context, the adoption of a framework or unifying architecture of interfaces and protocols based on norms and standards is essential. Thus, a reference architecture for the exchange of information between devices and electrical systems must be defined to allow all existing products, services, protocols, and interfaces to relate with one another. This framework, commonly defined as a road map, is of great interest to the Brazilian institutions and government [1,28].
In this perspective, the Brazilian Government by the figure of the Ministry of Mines and Energy (MME) instituted a working group to analyze and identify necessary actions to subsidize the establishment of public policies for the implementation of the “Brazilian Program of Intelligent Electrical Network” [28]. The program mainly addressed a proposal for the adequacy of regulations and general rules for public electricity distribution services, the identification of sources of funds for financing, and incentives for the deployment of national equipment and new possible prosumers-consumers that are able to generate their own consumption and sell their surplus.
Associated with this initiative, the Brazilian Industrial Development Agency (ABDI) articulated the creation of a government working group to structure the base for the strategic development of the SG supply industry in Brazil. It seeks to evaluate the sector as well as discuss and promote strategic actions presenting a proposal for the creation of the “Brazilian Program for the Development of the Intelligent Electrical Network Supply Industry.” The actions proposed in this program for the development of the SG and industry are described by the strategic areas and themes described in Table 7.
Table 7
| Strategic area | Themes |
|---|---|
| Management | Mapping/Articulation of the productive chain. Development of an observatory. Evaluation of new business models. |
| Financing and Taxation | Creation of financing line (Inova Energia). Special Taxation Regime. Expansion of the national capital offer for Smart Grid/City. |
| New Opportunities | Promotion of startups. Incentives for design projects. |
| Incentives for National Production and Technologies | Development of national software integrators. Definition of PPB for smart meters. Strengthen existing companies and solutions. |
| Legislation and Regulation | Adequacy of legislation and regulation. Definition of the Brazilian model for standards. Interoperability standards and certification. Criteria for cyber security. |
| Research, Development, and Innovation | Develop and strengthening of CRD&Is. Encouraging the deployment of ICT products. Encouraging the creation of demonstration cities with innovative technologies. |
| Internationalization | Accomplishment of international insertion and training missions. Creation of certification for Brazilian products. International collaboration. |
| Promotion and training | Development of technical-vocational courses. Development of postgraduate courses. Training of labor abroad. Teacher training. Program for the concept dissemination. |
| Infrastructure | Definition of criteria for sharing of the electric network and the telecommunication network. Integration of actions with PNBL and Digital Cities. |
At the end of 2013, the first proposal of the Referential Architecture of Intelligent Electrical Networks of Brazil (REI-BR-2030) was created by AGX Energia in partnership with ABDI. This is the first work to define the “Brazilian Road Map” containing all the main concepts and elements of Smart Grids customized for the Brazilian case, in a complete inclusive, and agnostic way to technological implementations [28].
The REI-BR-2030 road map has been validated in interactions with SG industry specialists, the academy, utilities, and government entities. It addresses in a logical and simplified way the basic block diagrams constituting the Brazilian Smart Grid. The Brazilian Smart Grid Reference Architecture that presents a schematic summary of the proposed arrangement, the relationships between the agents, and the main thematics and technologies to be implemented is shown in Fig. 9.
6 Lessons learned, diagnostics, and barriers
Smart Grid implementation imposes a series of significant changes to the model of the electric sector. The current model based on great investments in large infrastructure has been limited in the face of the new challenges, and the boost of technological evolution, digitalization, and connectivity of all the elements that surround life [1]. One of the most emblematic features of the changes promoted by SGs is the mass insertion of distributed generation, where the sector moves from a captive market model with a single supplier to a market with multiple sources of energy and a customer's actuation as prosumers. Given these characteristics, it is clear the need for changes in the sector way of making business, regulation, politics, and industry because the current model does not seem to accommodate the new characteristics presented by this new technological model of the electric sector and society [29].
This scenario is not Brazil's privilege. The barriers to the adoption and evolution of SG have also been identified in the international scenario, for example in the United Kingdom, where technical and regulatory conditions did not encourage its adoption. The United States is still seeking regulatory improvements to accommodate issues such as market restructuring, renewable insertion, net metering policies, tariff decoupling, and the provision of new services [1].
In Brazil, the Smart Grid domestic market is still incipient when compared to its potential. Among the 11 main SG projects, only one presents the concessionaire's own investments as the main financing source. All others have, as a common characteristic, most financing resources through the R&D Program regulated by ANEEL [26]. The incipience of this market is justified by the existence of barriers to the adoption of these technologies, which also impacts the evolution of the SG industry in the country.
In these terms, a diagnosis was made on the current barriers to the adoption of SG in Brazil in the context of industry, regulation, technology, and science [1–9,29–32].
- • R&D resource limitation: Given the resource constraints scenario in Brazil's economy, it is important that the new initiatives are articulated to maximize the available instruments, including innovations that have significant limitations of funding for R&D activities.
- • Deployment of the regulatory model: The evolution of SG adoption is directly related to the regulatory improvements toward a new model for the sector. The main problems include the uncertainty about the recognition of investments in telecommunication networks and IT, which in SGs is inherently and account for 21%–36% of SG project expenditures. Another aspect is the regulation on “Other Revenues” of the concessionaire, limiting the services and compelling the benefits to be shared with the society through tariff modality.
- • Low market maturity: Most of the resources spent with SG come from research support instruments. The industry presents difficulties in positioning itself in relation to investments in SG, avoiding the realization of relevant investments and the insertion of new products and technologies.
- • Industrial policies: There is a lack of clear signals about the creation of an SG market and the difficulty of competition between national companies and large multinational players that already have solutions with great maturity.
- • Difficulty of synergy with the telecommunications sector: The distributors have opted in their private projects to invest in their own communication networks. However, these companies do not have the right or authorization to operate communication services. In this way, the implanted infrastructure is underutilized, either from the point of view of installation of antennas or the use of frequencies.
- • Lack of synergy with the other utilities and public services: The underutilization of telecommunication networks dedicated to SG can be enlivened with partnerships with other utilities (water and gas) interested in performing remote measurements. These companies have difficulty implementing these systems because their infrastructure is less than that of energy companies.
- • Qualified labor force: The creation of more complex solutions entails the need for higher qualified labor. Electricians may have to deal with more complex knowledge, such as the configuration of a firmware, because they will be required to install digital equipment.
- • Certification and standardization process: The approval process for equipment poses some important difficulties for the adoption of SG and for the development of the industry. Three obstacles have been identified in this respect: difficulty in following the creation of ordinances in relation to the regulation of the electricity sector, long periods for homologation of meters, and radio frequency equipment and standardization.
- • Taxes, financing, and incentives: The last barrier identified refers to taxes, financing, and incentives for the development of technologies in the country. In the pioneer batch phase, the production cost is very high, mainly in terms of the lack of scale gain. This favors production in other countries, notably China. Possible discounts at different stages of the production chain could help the development of national solutions.
At last, a summarized diagnosis of the Brazilian strengths and weakness in the development of Smart Grids is presented in Table 8. Also, in order to contextualize the opportunities and threats that this concept faces on its implementation, a comparative analysis of possible opportunities and barriers based on the lessons learned is shown in Table 9.
Table 8
| Strengths | Weaknesses |
|---|---|
|
• Pilots in progress, some with the provision of national technology. • Existing innovation policies and funding sources (Aneel R&D, BNDES, Finep) and institutional support. • Existence of companies with national technology and CRD&Is with technical qualification for surpassing SG implementation challenges. • Demand to create specific solutions due to the particularities of the Brazilian market. |
• Company's size with national technology inferior to their world peers. • Absence of integrated solution providers. • Low articulation in R&D and introduction of innovations in the market. • Regulatory mismatch on the cost of the smart grid. • High cost of production and local R&D. • Lack of national agenda: late entering into the SG market. |
Table 9
| Opportunities | Barriers |
|---|---|
|
• Development and local production of integrated circuits, reduction of the impact on the CRD&Is trade balance and training. • Strengthening of local players. • Export of typical solutions to emerging markets (high losses, low consumption, etc.). • Potential use of the state's purchasing power (regulation of Law 12.349/10) and regulatory instruments. • Specific tax regime with emphasis on local technological content. • Smart metering: potential integration with other utilities (telecommunication, gas, water). |
• Attention to the main suppliers worldwide, who are buying companies with national technology (risks of denationalization), caused by the size of the Brazilian market for SG. • Implantation of SG with low/very low penetration of technology developed in the country and without technology trade. • Possibility of increasing the technological and business gap in Brazil due to the priority treatment of developed countries. |
7 Conclusions
Brazil's incipient framework for the implementation of SGs is expected by, among other things, the continental physical dimensions, institutional policies, and complexities inferred into the management of the electricity grid. However, paraphrasing CS Lewis, “If things can improve, this means that there must be some absolute standard of good above and outside the process to which that process can approximate. There is no sense in talking of ‘becoming better’ or ´smarter´ if better or smarter means simply ‘what we are becoming’—it is like congratulating yourself on reaching your destination and defining destination as ‘the place you have reached.’” This perspective defines a Smart Grid's framework as a coordinated effort not in assuming a better or smarter electrical system, but in the nature of the development, which must be performed by a continuous and integrated effort of government, industry, utilities, and research/academic institutions in establishing dynamic standards of good and acceptable enactments within all dimensions.
It is also necessary to recognize that in designing and establishing a framework for complex technological systems such as a smart grid, the phases of “analysis” and “creative design” are not successive steps but strongly interwoven stages [29]. The unfolding of Smart Grids must happen within the dynamics presented in Fig. 10, in which the development is reached by a continuous improved development.
Therefore, neither personal prejudices nor vested interests can permanently keep in favor a model of the grid that cannot be technically and economically justifiable. The grid of the future, call it: Smart, Smarter, Intelligent, Flexible, Modern, Integrated, Virtual, etc., will triumph over the traditional one. If it does, it will be not because the current model is a failure, but only if it proves to be a better one. As well as in the future, when the Smart Grid model gets discarded, the same principle will be in operation. The post-Smart Grid model will depend on the technical developments along with human will and preferences.
Some aspects still need more debate and improvements such as stimulating mass migration to SGs, addressing regulatory and technological issues (standardization, interoperability, etc.), and consumer responsiveness as well as new market models to foster investments. Although Brazil has already executed some initial steps in the process of Smart Grid implementation and energy saving goals, comprehensive demonstration projects were/are under development for different scenarios (metropolitan regions, environmental restriction, difficult access, high load density, diversity of customers, etc.). Alternatively, initiatives for the national deployment of SG innovative technologies and product nationalization through CRD&Is and industry partnerships must continue.
An overall picture of Smart Grid deployment in Brazil presenting the main thematic areas of development with the number of utilities, CRD&Is, and industry suppliers involved in its development and improvement are illustrated in Fig. 11.
