Market Research Report
South America Smart Grid: Market Forecast (2018 - 2027)
|Published by||Northeast Group, LLC||Product code||273785|
|Published||Content info||260-pages + Executive Summary Presentation + Dataset)
Delivery time: 1-2 business days
|South America Smart Grid: Market Forecast (2018 - 2027)|
|Published: February 28, 2018||Content info: 260-pages + Executive Summary Presentation + Dataset)||
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.