Portuguese 
Âmbar has presented a R$ 5.5 billion plan to rebuild the electric grid in Amazonas by 2031, including twelve new substations by 2028 and replacement of old cables, within a system where 44% of incoming energy is simply unbilled.
The package was unveiled on September 3 by the company, which took over distribution in the state in April of this year. João Pilla is the company’s CEO.
Of the total, R$ 3.9 billion comes from Âmbar’s own capital. The remainder is funded by federal transfers linked to the “Luz para Todos” (Light for All) program and the interconnection of municipalities to the electric grid, according to Agência iNFRA.
The Figure that Highlights the Problem
There is one indicator that sums up the situation better than any rhetoric: 44% of the energy is unbilled.
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Almost half of what enters the system does not generate revenue. Part of this is technical loss, which occurs due to physical constraints: old cables heat up, outdated transformers waste energy, and poorly designed networks dissipate energy along the way.
The other part is commercial loss, the technical term for illegal connections and meter readings that fail to capture what they should. In both scenarios, those who pay their bills regularly end up subsidizing these losses.
That is why modernizing the grid in such a concession is not merely an aesthetic project. Every percentage point recovered in this equation becomes direct revenue, and it is this revenue that pays back the investment over the duration of the contract.
What the Plan Aims to Build
The most visible items are the substations. According to the company, there will be twelve by 2028, a number that could increase to fifteen over five years, including new construction and revitalization of existing ones.
A substation is the point where energy changes voltage to be distributed. Without the right number of substations, feeders become overloaded, voltage drops at the endpoints, and entire neighborhoods experience fluctuations and outages.
The second item is the gradual replacement of old cables with coated concentric cables. This type of cable is much harder to tap into illegally, and it provides a direct technical solution to the issue of commercial loss.
Additionally, there will be network expansion, adoption of new technologies, and the resumption of the Luz para Todos program. Two municipalities have been prioritized for new network implementation: Iranduba and Manacapuru, both located in the metropolitan area of Manaus.
Why Amazonas Is a Unique Case
Distributing energy in the Amazon is unlike distributing energy in any other state. The geography imposes a different equation.
A large portion of the territory is not served by the national interconnected transmission system. Many localities depend on thermal generation, with fuel transported by river, which increases the cost of each kilowatt delivered.
Additionally, the network traverses igarapés (small rivers), floodplain areas, and stretches where maintenance is accessed by boat. A team that can resolve an issue in one hour in another state may take an entire day to reach the electricity pole.
It is in this context that the interconnection of municipalities to the system appears in the plan with federal funding. Connecting a city to the main grid replaces expensive diesel with cheaper energy, and the gains are reflected in the tariffs and in the public account for subsidies.
I confess that the most striking aspect is not the billion-dollar figure, but rather the timeline for the substations. Twelve units in just over two years, in a region where transporting heavy equipment depends on barges and river levels, is an aggressive schedule.
It is also worth watching what the utility will report about its loss curve. Announcing investment is easy; showing the percentage of unbilled energy decreasing year after year is what proves that the money has translated into infrastructure.
For those living in Manaus and dealing with fluctuations, the practical test will not be the announcement. It will be whether the lights stop flickering when the heat rises and everyone turns on their air conditioning at the same time.
There is a contractual point that helps clarify the scale of the commitment. Distribution concessions come with quality targets monitored by ANEEL, measured by indicators that record how many times and for how long customers are without power.
Failing to meet these standards results in financial compensation for consumers and regulatory sanctions. Therefore, the billion-dollar plan is not an act of generosity; it is a pathway to fulfilling obligations assumed upon signing the contract.
It is important to remember how the Amazon reached this point. Distribution in the state has gone through successive changes of control in recent years, and each transition has delayed structural investments while demand continued to grow.
The result is what is seen today: an aging network in a capital city that has surpassed two million inhabitants and has the Manaus Industrial Pole as a significant consumer, sensitive to any voltage fluctuations.
Industry does not cope well with power flickers. A power drop lasting a fraction of a second can shut down a production line, lose a batch, and necessitate a lengthy restart of equipment.
Thus, the plan is of interest to those who may never hear about it. Network stability in Manaus is essential for the local industrial park to remain competitive against factories located in the Southeast.
Furthermore, it is wise to distinguish what depends on the utility from what depends on public policy. The replacement of cables and the construction of substations are under the company’s control; meanwhile, interconnecting distant municipalities involves federal resources and environmental licensing in sensitive areas.
Therefore, part of the plan advances according to the company’s cash flow, while another part depends on funding and authorization. These are two different clocks ticking at the same time.
Over the coming years, however, the indicator that truly measures success is singular: the percentage of unbilled energy. If it decreases consistently, the investment has paid off; if it remains around 44%, the money will have purchased equipment without addressing the fundamental issue.
Do you live in the Amazon? Has the energy situation improved since the change of utility company in April, or is it still the same?
