Brazilian power firm Cemig mulling private 5G, generative AI, LEO satellite connectivity

Brazilian power company Cemig is looking into 5G private networks, low-earth orbit (LEO) satellite connectivity and generative AI as the next steps in its digital transformation drive, the company’s head of technology, Luis Cláudio Villani, told BNamericas.

The Minas Gerais state utility has around 1bn reais (US$200mn) earmarked for technology and connectivity investments, according to Villani. That figure includes telecoms systems for the automation of the 500km power grid.

“This transformation has already begun. If we observe the whole cycle, our investments will be greater than that. We're investing in telecom for the automation of part of the network above all, because all this intelligence needs to be connected,” the executive said on the sidelines of Schneider Electric’s Innovation Summit in Belo Horizonte, Brazil.

Last year, Cemig said that its digital transformation project would include 5.7bn reais in investments, mostly for its distribution area, out of a total 22.5bn reais in capex outlined by the end of 2025.

Although there is nothing defined in 5G as yet, the company is considering upgrading its existing private 4G LTE network to the new technology.

This network currently encompasses Cemig's operations in the metropolitan region of Minas Gerais state capital Belo Horizonte.

In satellite, Cemig already makes use of high-altitude (geostationary) satellites for areas in Minas Gerais where ground connectivity is lacking. 

Due to its topography, among other factors, the state has various so-called shadow areas without mobile technology.

At present, around 2,000 vehicles used by Cemig for field support are enabled with hybrid connectivity, according to the CTO, being able to connect to both ground and satellite systems.

However, low-orbit satellites such as LEO sites tend to provide faster and, more importantly, cheaper speeds, hence why Cemig is considering those, including SpaceX's Starlink, said Villani.

“Minas Gerais has large reliance on satellite connectivity. The lack of availability of 4G LTE in the state is huge. But the cost reduction to be provided by LEO satellites will be great,” he added.

In artificial intelligence (AI), Cemig currently employs IBM’s Watson for customer interactions and is now considering upping the technology for generative AI – WatsonX.

“Watson is heading in that direction, it's a natural path. Here at Cemig we're already testing generative AI, mainly in chatbots," said Villani.

SCHNEIDER ELECTRIC 

Cemig just signed a binding multi-year deal with Schneider Electric for the implementation of an Advanced Distribution Management System (ADMS), which is considered the neural system of electric power systems management.

“A company as big as Cemig, with a 500,000km power grid and 9.5mn consumers, needs technology to provide the best possible service. The system we're talking about there is the core of our operation – managing our entire processes and our power dispatch,” CEO Reynaldo Passanezi Filho told BNamericas.

The project will last two and a half years in a contract with Schneider Electric that runs until 2026. According to Vilani, deployment has already started. This year, the process will center on the basic configuration of the ADMS and on migrating the power grid data load to it.

The transformation project with Schneider Electric includes the implementation of Supervisory and Data Acquisition Systems (Scada), which monitor and operate key parts of the grid such as relays and substations, among others.

The technologies are embedded with AI and have native interoperability, connecting to the distributor's field resources.

Other modules in the project include distribution network management systems, operator training simulator (OTS), staff training and the distributed energy resources management system (DERMS).

The acquisition was made via a bidding process and is intended to modernize the management of Cemig's electrical network, considered the largest in the country in terms of size and which is still largely dependent on legacy systems developed internally.

“Next year, we will start operating in the high-voltage system, which is the backbone of this entire process. The main deliveries will start to take place in 2024-25,” the executive said.