Latin America’s Electric Leap: Utilities Go Smart

Utilities across Latin America accelerate digital grid upgrades to boost renewables and reliability

24 Oct 2025

Latin America’s electricity sector is entering a decisive phase of modernization as utilities and technology firms expand smart grid infrastructure, digital platforms and renewable integration. The shift reflects a growing focus on network efficiency and resilience rather than large-scale mergers or acquisitions.

In Brazil, Neoenergia has taken a leading role in deploying digital networks. The utility has built a private 4G LTE system to support grid operations and installed automated distribution technologies to enhance reliability and data management. Under a pilot program, the company introduced more than 75,000 smart meters and 140 automated reclosers by 2020, laying groundwork for broader adoption.

Across the region, the potential for smart metering is significant. Industry research projects that Latin America’s installed base of smart electricity meters will expand from roughly 14 million in 2023 to about 43 million by 2029, a compound annual growth rate of around 20 percent. Analysts attribute the surge to persistent non-technical losses, increasing demand for grid automation and regulatory efforts to modernize power networks.

In Argentina, Edesur, a subsidiary of Italy’s Enel Group, remains a key player in Buenos Aires’s power distribution system. Although the parent company has paused plans to sell the asset, its strategy continues to evolve amid shifting economic and regulatory conditions.

Throughout the region, utilities are adopting digital substations, advanced sensors and data-driven control systems to create more flexible, responsive grids. Neoenergia’s initiatives exemplify a broader move toward networks that adjust dynamically to consumption patterns and renewable generation.

Challenges persist, including complex regulatory frameworks, aging infrastructure and supply chain constraints. Yet growing investment interest from global energy firms and technology providers suggests momentum will continue.

Decisions taken in the coming years could determine Latin America’s influence in the global energy transition. If utilities sustain their digital transformation, the region may emerge as a model for integrating innovation, policy and sustainability into modern electric systems.