South America is one of the most attractive
emerging market regions for smart grid
infrastructure investment. The region is
comprised of countries with developing regulatory
frameworks and core business case indicators
that point towards immediate benefits from smart
grid infrastructure. From 2015 to 2025, the
region's total smart grid market will cumulatively
reach $38.1 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.
Recent smart grid activity in South America
This study covers all ten Latin countries in South America, which share several key
characteristics. They are fast growing economies with burgeoning middle classes, yet still have
some of the highest electricity theft rates in the world. They have abundant renewable sources
of power-particularly large hydropower-but their grids are struggling to meet rising demand.
Further distributed renewable energy resources are also becoming increasingly attractive across
the region. Lastly, they have governments eager to keep electricity prices low, but wary of
increasing subsidies.
©2015 Northeast Group, LLC.
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 grid
roadmap. Brazil is leading the
way with pilot projects dating
back to the mid-2000s, recently
announced plans for over 3
million new AMI meters, and a
number of smart city projects that are testing out a variety of smart grid applications.
Furthermore, Brazil's government has set regulations for smart meter deployments and created
incentives for residents to install small-scale solar PV along with smart meters. As the largest
country in the region, Brazil will drive the market-its conditions are similar to most other South
American countries and regional standardization is improving.
But Brazil is not alone in its smart grid development. Ecuador has set an even more ambitious
timeline for smart grid deployments, while Colombia and Peru are in the process of finalizing
smart grid roadmaps. Chile is developing its own smart city projects, Argentina is funding smart
grid R&D, and even Paraguay is developing smart meter pilot projects. Beyond AMI, distribution
automation is a focus for almost all South American utilities due to poor reliability, and several
South American countries are also currently developing phasor measurement unit projects
throughout the transmission grid.
The key driver of these initiatives is the unique near-term and long-term benefits South
American countries will receive from smart grid infrastructure. Unlike some of the more
developed emerging market countries, South American utilities will receive near-term savings
from smart meter deployments by reducing non-technical losses. At 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 that help win governmental
support-rising middle classes mean that demand response programs will grow in importance
and developing the region's strong solar, wind, and small hydro resources will require smart grid
to help manage the increased variability. Utilities can therefore make near-term deployments to
help reduce non-technical losses, while laying the groundwork for long-term benefits.
Current smart grid activity remains in the early stages and there are some challenges to
overcome. Most notably, concrete regulatory incentives have failed to develop in the past two
years as governments seek to find ways to finance their ambitious plans to largely low-income
residents. But these factors are slowly changing-incomes are rising, smart grid infrastructure
costs are falling, and regional collaboration is creating regulatory frameworks that can be
adopted throughout the region. As a result, South American countries are poised to reap the
significant benefits of smart grid, with significant investment expected throughout the forecast
period.
Key questions answered in this study:
- Where are the newest smart grid announcements and deployments in South America?
- How large will the smart grid market be in 10 countries across 15 sub-segments?
- Which countries are poised to take the next steps for smart grid regulatory development?
- Which local vendors are active and who are the leading international vendors?
Table of Contents
- i. Executive summary
- i.i What's new in 2015?
- i.ii South America smart grid overview
- ii. Methodology
1. Introduction
- 1.1. What is smart grid?
- 1.2. How has smart grid been used elsewhere in the world?
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. List of companies covered in this study
- 15.2. List of acronyms
List of Figures, Boxes, and Tables
- South America smart grid: key takeaways
- Smart meter potential in South America (2013 - 2015)
- AMI deployments and announcements in South America
- Recent smart grid activity in South America
- Recent smart grid projects in South America (2014 - 2015)
- Chinese meter vendor activity in South America
- Recent smart grid international cooperation in South America
- Smart grid drivers and barriers in South America
- Distribution losses in South America
- Growth in per-capita electricity consumption (2014 - 2025)
- Renewable energy potential and incentives in South America
- AMI vendor activity in Brazil
- Leading smart metering vendors in South America
- South America smart grid forecast
- South America smart grid forecast data
- Smart grid forecast by country
- Smart grid forecast data by country
- Northeast Group Smart Grid Forecasting Model
- Figure 1.1: Smart grid value chain
- Figure 1.2: Smart grid model
- Table 1.1: Benefits of AMI in South America
- Table 1.2: Demand response options
- Figure 1.3: Global smart grid activity
- Figure 1.4: Cumulative AMI investment by region up to 2015
- Figure 1.5: Cumulative distribution automation investment by region up to 2015
- Figure 1.6: Cumulative AMI investment by region up to 2025
- Figure 1.7: Cumulative distribution automation investment by region up to 2025
- 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
- Box 2.1: Smart meter business case in South America
- Figure 2.7: Payback on AMI meter from loss reduction at two Brazilian utilities
- Figure 2.8: 10-year per meter savings from theft reduction
- Figure 2.9: Growth in per-capita electricity consumption
- Figure 2.10: Renewable sources of energy in South America
- Figure 2.11: Annual manufacturing business losses due to power outages
- Table 2.1: Appliance ownership in Brazil
- Table 2.2 Smart grid market drivers and barriers in South America
- Figure 2.12: Ten-year price per kWh of AMI endpoints
- Figure 2.13: Per-capita electricity consumption in South America
- Figure 2.14: Average regulatory scores in emerging markets
- Figure 2.15: 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: Contracted and forecasted new generation 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
- Table 4.4: Smart grid funding through Inova Energia
- 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: Smart grid projects at Brazilian utilities
- Figure 4.9: AMI vendor activity in Brazil
- Table 4.8: Smart grid vendor activity at ten leading utilities in Brazil
- Table 4.9: Brazilian utilities
- Figure 4.10: T&D losses at Brazilian utilities
- Table 4.10: Indicators for leading utility parent companies in Brazil
- Figure 4.11: “Smart city” projects in Brazil
- Box 4.2: Light's Optimus program
- Table 4.11: Improvement following smart grid deployments in Búzios
- 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
- Box 5.2: Chile's renewable energy potential
- Table 5.3: EV pilot incentives in Chile
- Figure 5.2: Estimated monthly household power bills in South America
- Figure 5.3: Chile smart grid forecast
- Table 5.4: Chile smart grid forecast data
- Figure 5.4: Chile AMI forecast
- Table 5.5: Chile AMI forecast data
- Table 5.6: Leading Chilean distribution utilities
- 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
- 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
- Figure 6.5: Percentage of Colombian utilities carrying out smart grid projects
- Figure 6.6: Emcali's smart grid plans
- 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
- Figure 7.5: Electric bill for 150 kWh/month consumer at Edesur
- Table 7.5: Leading Argentine distribution utilities
- Figure 7.6: Edenor's proposed pilot TOU tariffs
- 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: Osinergmin's smart grid roadmap
- Figure 9.3: Peru smart grid forecast
- Table 9.3: Peru smart grid forecast data
- Figure 9.4: 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: Estimated monthly household power bills in South America
- Figure 11.3: Uruguay smart grid forecast
- Table 11.3: Uruguay smart grid forecast data
- Figure 11.4: Uruguay AMI forecast
- Table 11.4: Uruguay AMI forecast data
- Figure 11.5: 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: Estimated monthly household power bills in South America
- Figure 13.3: Bolivia smart grid forecast
- Table 13.3: Bolivia smart grid forecast data
- Figure 13.4: 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
- Figure 14.3: Market share of leading AMI vendors in South America (excluding Brazil)
- Table 14.1: Other smart grid vendors based in South America
- Table 14.2: Leading AMI hardware vendors in South America
- Table 14.3: Leading vendors of additional AMI components in South America
