Snapshot: Brazil's power distribution investments

Brazilian power distributors are expected to invest 144bn reais (US$25bn) in 2025-29, of which 39bn reais are planned for this year. 

The projection was announced recently by sector association Abradee. 

BNamericas outlines the capex estimates that have been revealed by some of Brazil's main power distributors for the coming years. 

CPFL Energia

Between 2025 and 2029, CPFL Energia plans to invest 29.8bn reais, including 24.7bn reais in distribution. In 2025, investments in the area are programmed to total 5.30bn reais. 

On Wednesday, the company said it plans to replace approximately 1.6mn conventional meters with smart meters in cities within the areas served by its distributors CPFL Paulista, CPFL Piratininga and CPFL Santa Cruz by 2029.

With projected investment of 1.2bn reais, of which 800mn reais will come from federal development bank BNDES's Mais Inovação program, the initiative will benefit approximately 400,000 consumers. The goal is to provide greater quality, transparency and efficiency in the use of electricity.

Neoenergia

In December, during a meeting with President Luiz Inácio Lula da Silva, Iberdrola's executive chairman Ignacio Galán and Neoenergia's CEO Eduardo Capelastegui said the Spanish company's subsidiary plans to invest approximately 40bn reais in Brazil between 2024 and 2028.

The capex is mainly focused on the distribution segment, in states such as Bahia (13bn reais), Pernambuco (5.1bn reais) and Rio Grande do Norte (2.1bn reais), as well as the federal district of Brasília (1.4bn reais).

Enel 

Enel Rio (Ampla Energia) intends to invest 6.1bn reais in its concession areas in Rio de Janeiro state between 2025 and 2027, up 74% from the previous business plan outlining 3.5bn reais. 

The increase is mostly motivated by the company's efforts to strengthen the resilience of the electricity grid in the service area to face the state's growing climate challenges.

Meanwhile, Enel SP, in São Paulo, foresees 6.2bn-real capex between 2024 and 2026, with an emphasis on hiring up to 1,200 employees to improve services in response to the consequences of extreme weather events.

Energisa

The group has announced investments of 6.2bn reais for 2025, in line with those made in 2024. A distributor in 11 states in Brazil, Energisa's core business will continue to receive the majority of the resources (5.5bn reais).

Cemig

The Minas Gerais state company plans to invest 23.2bn reais in 2025-29, with a focus on modernization of its power grid. 

Copel

The Paraná state power utility plans investment of 3bn reais for this year, of which 2.5bn reais are earmarked for distribution.