Public policies and investments on smart grids: a Brazilian analysis

Smart grids, in their international history, are recognised to be the interface technology that facilitate the sustainable energy transition. There is a great but not fully addressed innovation potential in Brazil in respects to the grid digitalisation within the energy transition domain. Innovation in the Brazilian energy sector is propelled by public policies and government agencies, therefore a comprehensive analysis and diagnosis of smart grid projects and public policies is vital to understand the policy’s issues and gaps in order to promote the energy transition. There are ongoing initiatives to better track the energy transition, such as the Energy Big Push, but they also lack information in regards to smart grid technologies. This research findings identifies that the actual R&D program funds scheme does not address aspects related to the environment and Brazilian social fragility. The regional concentration of smart grid investment predominantly motivated to optimise the system, reduce cost and increase stability in the nearby electrical system is an indication that the R&D Policy should be revised towards a common energy transition that is fair and sustainable. In response to the identified gap in strategic positioning for energy transition in Brazil, this paper suggests a public policy to establish national guidelines for transparency of distributed generation and electricity consumption data. Currently, there is no national framework that integrates these data in a standardised and accessible manner, preventing the holistic view necessary for an equitable energy transition. Key elements of this policy should include requirements for energy utilities to collect and publicly share data on distributed energy resources and consumption patterns through standardised dashboards.