The Project’s main components include: (a) Expansion of existing low and medium voltage distribution network, construction of new substations, and installation of new transformers; (b) modernization of existing substations, and installation of more efficient transformers; (c) Installation of smart consumer meters in select municipalities, investments in distribution automation technologies including reclosers and automated switches, outage management systems, data analytics and management systems, IT systems targeted at communications infrastructure, terminal equipment and related software; and (d) Purchase of software and operating vehicles.

The Project will contribute primarily towards SDG 7 (ensuring access to clean and affordable energy) and will support the Borrower to meet its sustainable commitments, which include: (i) invest at least BRL 580 million in intelligent energy solutions by 2027; (ii) refurbish at least 70,000 equipment of the electricity network by 2030; and (iii) reach 90% digitalization rate of customer service. The Project is also expected to contribute to the Borrower’s increased operational efficiency, which will be achieved via reduction in technical and commercial losses, improvements in system reliability quantified through reduced duration and frequency of power outages and reduced operating costs because of automation technologies.