The Digital Grid Revolution Lighting Up South America

Brazil and Chile spearhead Latin America’s shift to digital grids and resilient renewable power

27 Oct 2025

South America’s energy sector is entering a period of accelerated change, led by Brazil and Chile’s investments in clean power and digital infrastructure. The region’s utilities and manufacturers are expanding renewable generation and modernizing grids to create a more intelligent, climate-resilient energy system.

In Brazil, WEG has taken a major step toward digital transformation with its acquisition of Tupi Mob, an electric-vehicle charging software firm. The deal extends WEG’s reach into the country’s growing EV and smart-charging market, reflecting a wider trend among industrial companies seeking to integrate electrification with advanced energy management.

Neoenergia, one of Brazil’s largest electricity providers, is advancing the Alto Paranaíba transmission project, now in its final phase. The high-voltage line stretches across Minas Gerais and São Paulo, designed to channel wind and solar power from the north to the manufacturing heartland in the south. Company officials describe it as a key investment to prevent future grid congestion and sustain the pace of renewable expansion.

On the western edge of the continent, Chile is pursuing one of Latin America’s most ambitious clean energy projects. Grenergy has begun construction on a combined solar and battery complex that will pair 340 megawatts of photovoltaic capacity with 960 megawatt-hours of storage. The hybrid facility is expected to deliver continuous renewable power, extending the reach of solar generation well into nighttime hours.

Analysts say these initiatives mark a turning point in how Latin America manages energy. According to projections from the IMARC Group, the region’s smart grid market could reach about $14 billion by 2033, fueled by digital automation and the need for greater resilience against climate impacts.

High upfront costs and regulatory challenges persist, yet the trajectory appears clear. Brazil and Chile are no longer following the global north’s lead; they are shaping the model for a digitally connected, low-carbon energy future that could redefine power systems across the continent.