Eletrobras, Brazil’s state-run power utility firm, plans to partner with U.S.-based technology company C3.ai to use artificial intelligence (AI) in the operation of Brazil’s electric grid, the firms told Reuters on Aug. 18. Eletrobras will use C3.ai’s systems to monitor and respond to grid failures in real time, the firms said. How could the adoption of AI by Brazil’s largest utility firm affect electricity prices and availability? What risks could come from Eletrobras’ proposed partnership with C3.ai? To what extent could AI-backed grid management systems benefit other countries in Latin America?
Camila Ramos, founder and CEO of CELA – Clean Energy Latin America in São Paulo: “Artificial intelligence is set to transform the way power systems are managed, both in Brazil and across Latin America and the world. By enabling utilities to process vast volumes of data in real time, AI tools can detect patterns, anticipate failures and optimize grid operations. For Eletrobras, this could mean faster responses to outages and greater efficiency in integrating renewable sources—two factors that ultimately improve electricity availability and system reliability. Over time, such efficiencies may also translate into lower operating costs, which can help contain electricity prices. But the potential of AI for energy goes well beyond operational efficiency. AI is already helping discover new ways to generate energy, design innovative transmission and distribution systems, and plan more resilient energy sectors. It is also driving breakthroughs in materials science, opening the door to new components and equipment for power generation that could be cheaper, more efficient and less carbon-intensive. These advances illustrate that AI is not just a tool for analyzing today’s challenges, but also for inventing tomorrow’s solutions. Brazil’s case also has wider regional implications. Many Latin American countries are grappling with growing renewable integration, aging infrastructure and rising demand from sectors like data centers and AI itself. Our research at CELA showed that in 2024, data centers already accounted for one-third of bilateral power purchase agreements in Brazil, underscoring how energy and AI are increasingly intertwined. In this sense, ‘AI for Energy’ may prove just as transformative as the much-discussed ‘Energy for AI.’”
Yohir Akerman, president of the Latin America region at Guidepost Solutions: “Like electricity, artificial intelligence represents both promise and peril: It can light the way to efficiency and reliability or burn those who rely on it most. That’s why Eletrobras’ move to join forces with C3.ai to rewire Brazil’s electric grid isn’t just a partnership—it’s a historic gamble. At stake is nothing less than the modernization of one of Latin America’s most complex and politically sensitive infrastructures. On the positive side, AI-backed grid management has the potential to reduce blackouts, anticipate failures before they cascade and lower operational costs. In a country where every centavo on the electricity bill matters to households and businesses alike, any efficiency gain could translate into price stability. The ability to predict surges, optimize generation and balance renewable inputs could also accelerate Brazil’s transition toward cleaner energy. If successful, this partnership could set a precedent for utilities across Latin America, where grids are often fragile, under-invested and vulnerable to climate shocks. But we cannot ignore the risks. Relying on a U.S. technology company to control critical infrastructure raises sovereignty and cybersecurity questions. Who owns the data? Who controls the algorithms in times of crisis? What happens if political tensions strain U.S.-Brazil relations? Moreover, AI systems are only as good as the data they ingest. Faulty or biased inputs could lead to misdiagnosis of failures, producing new kinds of systemic risks. Transparency, accountability and independent oversight will be essential if this new ‘fire’ is to be tamed. For Latin America, the lesson is clear: AI can modernize our energy systems, but it must be tamed. Technology has never been neutral: It has always carried the dual capacity to empower or to endanger. Fire allowed us to cook and to gather, but it also destroyed cities when left unchecked. Electricity illuminated the world and powered industries, yet demanded regulation, safety and oversight to prevent catastrophe. AI now arrives as the next transformative force in that lineage. Its promise is undeniable, but so is its peril. From fire to electricity, progress came only when we controlled the danger. AI is no different.”
Renato Carlos Zambon, associate professor in the Department of Hydraulic and Environmental Engineering at the Polytechnic School of the University of São Paulo: “The Brazilian interconnected power system meets more than 99 percent of the country’s energy demand. In 2024, the energy mix was 61.3 percent hydropower, 15.2 percent wind, 10.7 percent solar, 10.6 percent thermal and 2.2 percent nuclear. Besides Paraguay’s share of Itaipú, exchanges with neighboring countries are relatively small, but there is great potential for growth. Generation, transmission and distribution are managed by several companies, with overall planning centralized by the National Electric System Operator. In recent decades, a set of optimization models has been developed to support dispatch, storage and transmission decisions, accounting for regional variations and stochasticity in the large-scale system. Hydropower and transmission play a key role in balancing seasonal and hourly differences between the demand and non-dispatchable wind and solar generations. Intermittency and curtailment events bring additional complexity. New AI-based models have also begun to be explored by different companies and activities in the sector such as customer support, demand forecasting and predictive maintenance. Eletrobras, a leading generation and transmission company in Brazil, in partnership with C3.ai, is scaling up a ‘grid intelligence’ application across its transmission assets. An expected benefit is reduced risk and faster recovery in case of incidents. However, we must remember that models are always simplifications of real systems and can lead to errors and biases, depending on how they are formulated and the quality of data used. Therefore, they should always be used with caution as tools to support decisions, but they do not replace the role of decision-makers and operators.”
Sarah M. Brooks, professor of political science at The Ohio State University: “By adopting an AI system from the U.S. firm C3.ai, Eletrobras can make potentially efficiency gains in the grid operation and thus offer price improvements for customers. But there are risks and uncertainties associated with introduction of AI technology to massive energy grids, as well. To the extent that AI can improve grid efficiency, this could lead to more stable and potentially lower electricity prices, as well as more consistent power availability. Still, this partnership could introduce new risks, including cybersecurity threats and unintended consequences of reliance on foreign technology. The motivation for this partnership was most likely an expectation that the improved efficiency of a ‘smart’ grid will lower prices through real time fault detection and predictive maintenance support. However, incorporating AI into the grid can also introduce vulnerabilities, including cyberattacks and reliance on foreign software, which brings uncertainty in terms of future upgrades and maintenance. The nature of the contract, especially knowledge-sharing with Eletrobras and security provisions for the grid, will be important for ultimately predicting the benefit of this partnership.”
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