After years of slow progress,
South America is finally showing
signs of becoming one of the
most attractive emerging market
regions for smart grid
investment.
The region is
comprised of countries with
newly developed smart meter
targets and associated
regulations, as well as core
business case indicators that
point towards immediate benefits
from smart grid infrastructure.
From 2018 to 2027, investment in total smart grid infrastructure will cumulatively reach $20.1
billion. This includes investment in advanced metering infrastructure (AMI), distribution
automation (DA), wide area measurement (WAM), home energy management (HEM), information
technology (IT) and battery storage.
Throughout South America, smart grid infrastructure is now viewed as a solution to many of the
challenges the region is facing. Eight of the ten countries already have significant pilot projects in
place, while half of the countries have developed some form of smart meter regulatory target.
In terms of deployments, Brazil is the regional leader despite significant project delays, with ongoing deployments in the hundreds of
thousands of meters and larger
projects expected. Economic
challenges have delayed much of
Brazil's recent smart grid growth, but
the economy is now rebounding and a
proposed target of rollouts by 2032
appears achievable. In the meantime,
other South American countries have
become more proactive. At the end of
2017, Chile, Colombia, and Uruguay
all announced plans for rollouts and/or
targets and smart grid investment
plans have already been developed.
Meanwhile, pilots continue to grow at utilities throughout South America and many utilities have
plans that go above and beyond regulations.
The key driver of these initiatives is the unique near-term and long-term benefits South American
countries will receive from smart grid infrastructure. Most notably, South American utilities will
receive near-term savings from smart meter deployments by reducing non-technical losses. At
nearly 15%, the regional transmission and distribution (T&D) loss rate is among the highest in the
world. But there are also important long-term benefits to smart grid infrastructure such as
managing rising middle class demand and increased use of distributed and renewable
generation. Utilities can therefore make near-term deployments to help reduce non-technical
losses, while laying the groundwork for long-term benefits. In the past few years, these near-term
drivers have not been sufficient, and investment has lagged. But with firm targets in place,
growing economies, and declining smart grid infrastructure costs, South American utilities appear
poised to finally begin significant deployments in the near-to-medium term.
Key questions answered in this study:
- How large will the smart grid market be across South America?
- Which South American countries are being driven by smart grid regulation?
- Which South American countries are investing in more advanced smart grid segments such as DA, WAM, IT, and battery storage?
- What major international and local vendors are best positioned to supply the South American market?
Table of Contents
i. Executive summary
1. What's new in 2018?
2. South America smart grid snapshot
- 2.1. The region in comparison
- 2.2. Regional drivers
- 2.3. Regional challenges
3. Regional market forecast
4. Brazil
- 4.1. Electricity industry structure
- 4.2. Smart grid regulatory environment
- 4.3. Market forecast
- 4.4. Utility activity
5. Chile
- 5.1. Electricity industry structure
- 5.2. Smart grid regulatory environment
- 5.3. Market forecast
- 5.4. Utility activity
6. Colombia
- 6.1. Electricity industry structure
- 6.2. Smart grid regulatory environment
- 6.3. Market forecast
- 6.4. Utility activity
7. Argentina
- 7.1. Electricity industry structure
- 7.2. Smart grid regulatory environment
- 7.3. Market forecast
- 7.4. Utility activity
8. Ecuador
- 8.1. Electricity industry structure
- 8.2. Smart grid regulatory environment
- 8.3. Market forecast
- 8.4. Utility activity
9. Peru
- 9.1. Electricity industry structure
- 9.2. Smart grid regulatory environment
- 9.3. Market forecast
- 9.4. Utility activity
10. Paraguay
- 10.1. Electricity industry structure
- 10.2. Smart grid regulatory environment
- 10.3. Market forecast
- 10.4. Utility activity
11. Uruguay
- 11.1. Electricity industry structure
- 11.2. Smart grid regulatory environment
- 11.3. Market forecast
- 11.4. Utility activity
12. Venezuela
- 12.1. Electricity industry structure
- 12.2. Smart grid regulatory environment
- 12.3. Market forecast
- 12.4. Utility activity
13. Bolivia
- 13.1. Electricity industry structure
- 13.2. Smart grid regulatory environment
- 13.3. Market forecast
- 13.4. Utility activity
14. Vendor activity
- 14.1. South America-based vendors
- 14.2. International vendors
15. Appendix
- 15.1. Methodology
- 15.2. Smart grid overview
- 15.3. Global smart grid activity
- 15.4. List of companies and acronyms
List of Figures, Boxes, and Tables
- South America smart grid: key takeaways
- Figure 1.1: Recent smart grid activity in South America
- Figure 1.2: Proposed and/or estimated large-scale AMI rollouts by country
- Figure 1.3: AMI deployments and announcements at largest Brazilian parent utilities
- Figure 1.4: AMI deployments and announcements at largest South American utilities
- Table 1.1: South American utility AMI activity and plans
- Figure 1.5: Additional smart grid applications in South America
- Figure 1.6: Notable battery storage projects in South America
- Table 1.2 Chinese meter vendor activity in South America
- Figure 1.7: Global average AMI price per endpoint
- Figure 1.8: Enel global presence
- Figure 1.9: Distribution utility ownership changes in Brazil
- Figure 1.10: Market share of leading AMI metering vendors in South America
- Figure 1.11: Cumulative smart grid forecast comparison
- Figure 1.12: Cumulative AMI units forecast comparison
- Figure 2.1: Emerging markets smart meter potential
- Figure 2.2: Per-capita electricity consumption
- Figure 2.3: Per-capita CO2 emissions
- Figure 2.4: Projected GDP growth
- Figure 2.5: T&D losses in South America
- Figure 2.6: Large-scale power plants in South America
- Figure 2.7: Growth in per-capita electricity consumption
- Figure 2.8: Renewable sources of energy in South America
- Figure 2.9: Annual manufacturing business losses due to power outages
- Table 2.2 Smart grid market drivers and barriers in South America
- Figure 2.10: Ten-year price per kWh of AMI endpoints
- Figure 2.11: Per-capita electricity consumption in South America
- Figure 2.12: Percent hydro in generation mix
- Figure 3.1: South America smart grid forecast
- Table 3.1: South America smart grid forecast data
- Figure 3.2: South America AMI penetration rate
- Figure 3.3: Smart grid forecast by country
- Table 3.2: Smart grid forecast data by country
- Figure 3.4: Annual AMI deployments in South America
- Figure 3.5: AMI cost breakdown
- Figure 3.6: AMI forecast by segment
- Table 3.3: AMI forecast data by segment
- Figure 3.7: DA forecast by segment
- Table 3.4: DA forecast data by segment
- Figure 3.8: HEM forecast by segment
- Table 3.5: HEM forecast data by segment
- Figure 3.9: IT forecast by segment
- Table 3.6: IT forecast data by segment
- Table 4.1: Brazil key data
- Figure 4.1: Brazil AMI penetration rate
- Table 4.2: Smart grid indicators in Brazil
- Figure 4.2: Distribution ownership changes in Brazil
- Figure 4.3: Utility ownership in Brazil (%)
- Figure 4.4: Electricity regulatory structure in Brazil
- Box 4.1: Political risk in Brazil
- Figure 4.5: Conventional and “white” tariffs
- Table 4.3: Smart grid-related government action in Brazil
- Figure 4.6: EV incentives in Brazil
- Figure 4.7: Brazil smart grid forecast
- Table 4.5: Brazil smart grid forecast data
- Figure 4.8: Brazil AMI forecast
- Table 4.6: Brazil AMI forecast data
- Table 4.7: Brazilian utilities
- Figure 4.9: AMI deployments at largest Brazilian utilities
- Table 4.8: Smart grid vendor activity at ten leading utilities in Brazil
- Table 4.9: Smart grid projects at Brazilian utilities
- Table 4.10: Indicators for leading utility parent companies in Brazil
- Figure 4.10: AMI vendor activity in Brazil
- Figure 4.11: T&D losses at Brazilian utilities
- Figure 4.12: “Smart city” projects in Brazil
- Table 4.11: Light's current non-technical loss reduction strategy
- Table 4.12: Notable battery storage projects in Brazil
- Table 5.1: Chile key data
- Figure 5.1: Chile AMI penetration rate
- Table 5.2: Smart grid indicators in Chile
- Box 5.1: Political risk in Chile
- Figure 5.2: Chile smart grid forecast
- Table 5.3: Chile smart grid forecast data
- Figure 5.3: Chile AMI forecast
- Table 5.4: Chile AMI forecast data
- Figure 5.4: Enel Chile capex growth investments
- Table 6.1: Colombia key data
- Figure 6.1: Colombia AMI penetration rate
- Table 6.2: Smart grid indicators in Colombia
- Figure 6.2: ISA's South American transmission assets
- Table 6.3: Leading Colombian distribution utilities
- Box 6.1: Political risk in Colombia
- Box 6.2: Smart meter regulations adopted in January 2018
- Figure 6.3: Colombia smart grid forecast
- Table 6.4: Colombia smart grid forecast data
- Figure 6.4: Colombia AMI forecast
- Table 6.5: Colombia AMI forecast data
- Table 6.6: Notable smart grid projects in Colombia
- Table 7.1: Argentina key data
- Figure 7.1: Argentina AMI penetration rate
- Table 7.2: Smart grid indicators in Argentina
- Box 7.1: Political risk in Argentina
- Figure 7.2: Argentina smart grid forecast
- Table 7.3: Argentina smart grid forecast data
- Figure 7.3: Argentina AMI forecast
- Table 7.4: Argentina AMI forecast data
- Figure 7.4: Electricity prices in South America
- Table 7.5: Leading Argentine distribution utilities
- Table 8.1: Ecuador key data
- Figure 8.1: Ecuador AMI penetration rate
- Table 8.2: Smart grid indicators in Ecuador
- Box 8.1: Political risk in Ecuador
- Figure 8.2: Ecuador's national smart grid plan
- Figure 8.3: Ecuador smart grid forecast
- Table 8.3: Ecuador smart grid forecast data
- Figure 8.4: Ecuador AMI forecast
- Table 8.4: Ecuador AMI forecast data
- Figure 8.5: Distribution losses at Ecuadorean utilities
- Table 8.5: Vendors already active in Ecuador
- Table 9.1: Peru key data
- Figure 9.1: Peru AMI penetration rate
- Table 9.2: Smart grid indicators in Peru
- Box 9.1: Political risk in Peru
- Figure 9.2: Peru smart grid forecast
- Table 9.3: Peru smart grid forecast data
- Figure 9.3: Peru AMI forecast
- Table 9.4: Peru AMI forecast data
- Table 10.1: Paraguay key data
- Figure 10.1: Paraguay AMI penetration rate
- Table 10.2: Smart grid indicators in Paraguay
- Box 10.1: Political risk in Paraguay
- Figure 10.2: Highest global distribution losses
- Figure 10.3: Paraguay smart grid forecast
- Table 10.3: Paraguay smart grid forecast data
- Figure 10.4: Paraguay AMI forecast
- Table 10.4: Paraguay AMI forecast data
- Table 11.1: Uruguay key data
- Figure 11.1: Uruguay AMI penetration rate
- Table 11.2: Smart grid indicators in Uruguay
- Box 11.1: Political risk in Uruguay
- Figure 11.2: Uruguay smart grid forecast
- Table 11.3: Uruguay smart grid forecast data
- Figure 11.3: Uruguay AMI forecast
- Table 11.4: Uruguay AMI forecast data
- Figure 11.4: UTE's smart grid timeline
- Table 12.1: Venezuela key data
- Figure 12.1: Venezuela AMI penetration rate
- Table 12.2: Smart grid indicators in Venezuela
- Box 12.1: Political risk in Venezuela
- Figure 12.2: Smart meter benefit indicators in South America
- Figure 12.3: Venezuela smart grid forecast
- Table 12.3: Venezuela smart grid forecast data
- Figure 12.4: Venezuela AMI forecast
- Table 12.4: Venezuela AMI forecast data
- Table 13.1: Bolivia key data
- Figure 13.1: Bolivia AMI penetration rate
- Table 13.2: Smart grid indicators in Bolivia
- Box 13.1: Political risk in Bolivia
- Figure 13.2: Bolivia smart grid forecast
- Table 13.3: Bolivia smart grid forecast data
- Figure 13.3: Bolivia AMI forecast
- Table 13.4: Bolivia AMI forecast data
- Figure 14.1: Leading smart grid vendors in South America
- Figure 14.2: Market share of leading AMI vendors in South America
- Table 14.1: Other smart grid vendors based in South America
- Table 14.2: Chinese meter vendor activity in South America
- Table 14.3: International telecom providers in South America
- Figure 15.1: Northeast Group Smart Grid Forecast Model
- Figure 15.2: Smart grid value chain
- Figure 15.3: Smart grid model highlighting focus in South America
- Table 15.1: Benefits of AMI in South America
- Table 15.2: Demand response options
- Figure 15.4: Global smart grid activity
- Figure 15.5: Cumulative smart grid investment from 2018 - 2027 by region
- Figure 15.6: Annual smart grid and AMI investment by region in 2027
- Table 15.3: Global smart grid drivers and activity
