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Tackling Brazil’s energy challenge through smart metering
Brazil is a champion when it comes to electrification in the region, with almost 99% grid coverage across urban and rural areas. The specific energy challenge that Brazil faces is ensuring that utilities distribution networks are efficient where utilities suffer from high non-technical losses of up to 20% , mainly due to theft of electricity, vandalism and inefficient billing.
Conscious of these inefficiencies and the resulting revenue losses, distribution companies are adopting smart mobile technologies to tackle the country’s energy access challenges. This is the case of Eletrobras – Brazil’s utility company. In 2012, Eletrobras launched the project Energia +, in partnership with the World Bank, to improve their performance in the six Northern states with the highest non-technical losses (10% to 20%): Amazonas, Alagoas, Acre, Piauí, Rondônia and Roraima.
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Utility-MNO partnership
As part of the project, in 2014, Eletrobras contracted a consortium formed of Siemens, Itron and Telemont to manage their Advanced Metering Infrastructure bid, aimed at upgrading the network. The Mobile Network Operator (MNOs) Telefonica Vivo was selected out of a pool of tenders to provide machine-to-machine (M2M) cellular connectivity as well as the operation and maintenance management platform for Eletrobras’ smart grid roll-out.
Figure 1: MNO smart solution business offering
Benefits for Eletrobras of this partnership
Some of the main benefits for Eletrobras from their partnership with Vivo are:
• Energy loss reduction
• Improved quality of service
• Institutional strengthening
(Source: Telefonica, M2M case study)
Looking ahead: a broader MNO offering for utilities
As Figure 1 highlights, MNOs can provide a full suite of enabling services targeted for smart solutions that can be leveraged by electricity utilities. Data management, providing service delivery and customer relationship management platforms are some of the core competences of MNOs, beyond connectivity.
Further benefits for utilities
Mobile enabling services can tackle utilities’ main inefficiencies, notably billing and collection of payments as well as improving communication between the utility and its customers.
Upgrading billing systems and improving revenue recovery
In Brazil, collection of energy consumption data is still manual – which is a low cost option given the inexpensive labour – and bills are sent via the post. In this context, distribution companies are reluctant to change and invest in more efficient, smart solutions. However, mobile services such as mobile payments or M2M technology, could help upgrade and optimize these inefficient and often inaccurate systems and in turn, improve revenue recovery.
Strengthening customer relationship management and encouraging better repayment rates
There is also a need to improve the relationship between the customer and the distribution company, which could be achieved through better information sharing and participation of the customer using mobile services as simple as SMS. While a simple service, better communication with the customer can strengthen the quality of the service, improve overall customer satisfaction and encourage customers to pay for their electricity bills.
While MNOs continue to focus on their core competency – connectivity – there is an opportunity to offer other enabling services, building on connectivity. MNOs, such as Vivo, can provide best in class services based on strong partnerships, deep expertise in data management and efficient service delivery, beyond providing its technology.