Brasilia, May 11, 2026 (Lusa) – Portuguese energy utility company EDP Brasil expects to invest 9 billion reais (about €1.56 billion) between 2026 and 2028, focusing on power transmission and distribution.
In an exclusive interview with Lusa, the head of EDP in South America, João Brito Martins, said that 3.7 billion reais (about €641 million) of the total would go toward energy transmission.
He said it would use the rest for distribution concessions (government contracts for public services) in the states of São Paulo and Espírito Santo.
The 30-year renewal of the São Paulo concession last Friday follows the company’s renewal of operations in Espírito Santo in July 2025.
This made it the first company to complete the process in the current auction of renewals for Brazil's electricity sector.
EDP currently supplies about 4 million customers in Brazil, with 2.2 million in São Paulo and 1.8 million in Espírito Santo.
It also operates in renewable generation, transmission, and energy trading across several states.
"Through our plants, transmission lines, and energy trading, we serve many more customers indirectly rather than directly," Martins said, noting the company is present in almost every Brazilian state.
EDP operates about 3.5 gigawatts of installed capacity in Brazil, including hydro, solar, and wind plants.
It also has about 3,000 kilometres of transmission lines, with half in operation and half under construction.
Martins called Brazil a “very important market” for the group and said the country is now the base for EDP's operations in South America, including assets in Chile.
Brito Martins said EDP was closely following the progress of the battery energy storage market, considered a major global trend in the electricity sector.
EDP started a test operation last week for a battery system associated with an 80-megawatt wind farm in Chile, which he described as another important milestone.
"It is the first large-scale battery project we have in the region and has begun test operations. We hope to enter full commercial operation soon," he said.
"Brazil is a positive reference in terms of structure and regulatory model in the world," he said.
He added that the country has a predictable system with appropriate incentives for private investment in the electricity sector.
However, he warned of challenges from the rapid growth of distributed renewable generation, which has led to energy surpluses at certain times. This highlights the importance of electric batteries.
He said Brazil faces renewable generation cuts, known in the industry as “curtailment” (reducing output to balance the grid), because supply exceeds consumption at certain times.
"Therefore, this curtailment has had an impact, as it was around 20% in Brazil last year [2025]," he said. "This creates a significant financial loss for our renewable generation."
The manager said the company was waiting for the publication of the notice for Brazil's first battery auction, currently under discussion by the federal government.
"We hope it happens later this year, and we believe it is critical for system security and for minimising the effect of curtailment," he said.
Expanding transmission lines and implementing battery storage systems are essential to reduce energy waste and strengthen the security of Brazil's electricity system, Martins said.
"Therefore, I would say these are the two main issues we have here today that need some regulatory improvement," he said.
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