Smart Metering in Latin America 2nd Edition

Smart Metering in Latin America 2nd Edition

Smart Metering in Latin America is strategy market report fromBerg Insight analysing the latest smart metering developments inthis dynamic region covering both electricity and gas. The countriescovered in-depth include Brazil, Mexico, Argentina, Bolivia, Chile,Colombia, Costa Rica, Ecuador, El Salvador, Guatemala, Honduras,Panama, Paraguay, Peru and Uruguay. This strategic researchreport from Berg Insight provides you with over 150 pages of uniquebusiness intelligence, including 6-year industry forecasts, expertcommentary and real-life case studies on which to base your businessdecisions.

Smart Metering in Latin America 2nd Edition

Smart metering is widely regarded as a cornerstone for future smart grids and is currently beingdeployed all over the developed world, with a growing number of large-scale initiatives now alsobeing launched in developing countries. With more than 215 million electricity customers, LatinAmerica constitutes a large market with significant potential, as well as a significantly lowerpenetration rate of smart meters in comparison to regions such as East Asia, Europe and NorthAmerica. The annual demand for electricity meters in Latin America ranges from 20 to 30 millionunits, out of which Brazil and Mexico together account for over 65 percent. With the exception ofCosta Rica and Uruguay, Latin America has not yet seen the implementation of nationwide smartmetering projects. However, a number of utilities in the region are scaling-up their smart meteringinitiatives. Overall, high non-technical electricity losses due to the prevalence of energy theftthroughout Latin America will continue to be a major driver for smart metering investments. Inrecent years, Chinese meter vendors have achieved increasing success in the Latin Americanmarket. A key contributing factor is their ability to offer competitive pricing, a crucial aspect forthe price-sensitive utilities operating in the region.

Berg Insight forecasts that the installed base of smart electricity meters in Latin America – definedas Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, Guatemala,Honduras, Mexico, Panama, Paraguay, Peru and Uruguay – will grow at a compound annualgrowth rate of 20.5 percent from 14.0 million in 2023 to 42.9 million in 2029. New installations willlargely be driven by deployments in Brazil and Mexico, while countries such as Colombia,Ecuador and Peru are expected to grow their share of annual shipment volumes throughout theforecast period. Colombia and Peru for example, are expected to increase their share of annualsmart electricity meter shipment volumes in the region from 5.9 percent in 2023 to 16.5 percentin 2029. In Brazil, several utilities such as Cemig, Copel and Enel have invested significantly inthe deployment of AMI – particularly Enel’s subsidiary in São Paulo which aims to install morethan 8.8 million smart meters by 2030. Berg Insight projects that over 31.4 million new smartelectricity meters will be installed in Latin America during 2023–2029. Annual shipment volumesare forecasted to grow from 2.6 million in 2023 to nearly 6.7 million in 2029. The smart meterpenetration rate across Latin America is meanwhile forecasted to reach 18.4 percent in 2029 –up from 6.5 percent in 2023.

The rollout of smart electricity meters in Costa Rica progresses steadily and the country reacheda milestone during 2022 when the smart meter penetration rate surpassed 50 percent. Thelargest DSO group in Costa Rica Grupo ICE announced that it aims to reach 100 percent smartmeter coverage by 2035. In Uruguay, the nationwide rollout by the state-owned utility is in itsend-phase and the country is expected to become the first Latin American country to reach fullsmart metering coverage in 2024. Brazil is a highly interesting market for smart metering solutionvendors with its 95 million electricity users and low penetration rate of smart meters – 5.6 percentin 2023. Utilities in the country are increasingly investing in the technology and the country isforecasted to account for nearly 50 percent of the shipped smart electricity meters in LatinAmerica during the forecast period. The penetration rate of smart electricity meters in Mexico isforecasted to increase from around 8.5 percent in 2023 to nearly 22.0 percent in 2029. BergInsight estimates that the installed base of smart electricity meters in Argentina will almostquadruple from more than 0.25 million to slightly over 1.0 million over the forecast period. Smartmetering deployments in neighbouring Chile peaked in 2018–2019 and have since decreased,mainly due to regulatory ambiguity. There is however potential for a more positive marketdevelopment if the regulatory environment in the country improves and Berg Insight anticipatesthat by the end of the forecast period annual shipment volumes will increase. In Colombia, theinstalled base of smart meters is forecasted to significantly increase – driven by deployments bythe largest utility group Grupo EPM and Enel Colombia. Berg Insight projects that annualshipment volumes in Colombia will grow at an impressive CAGR of 35.4 percent during theforecast period. Peru is a more nascent market in comparison to its neighbour Colombia andsmart meter shipment volumes are anticipated to increase after 2024, which is when the countryis set to propose technical standards and cost-benefit methodology for future AMI deployments.

In Ecuador, investments in smart metering are expected to increase throughout the forecastperiod and Berg Insight expects that the number of installed smart meters will grow from 170,000units in 2023 to more than 620,000 units in 2029. The two only landlocked countries in SouthAmerica – Bolivia and Paraguay – are also two of the least mature smart metering markets inLatin America. Berg Insight expects that these two markets will grow modestly and continue tobe largely in the smart metering pilot phase throughout the forecast period. The Central Americancountry Honduras has long deployed smart meters and ended 2023 with an installed base northof 0.5 million. Honduras continues to suffer from very high non-technical electricity losses atabove 30 percent and the deployment of smart meters has been used as a tool to lower losses,but to no avail so far. Included in the report are also the Central American countries El Salvador,Guatemala and Panama which all have relatively low installed bases of smart meters. BergInsight expects that these markets will slowly increase the scope and scale of smart meterdeployments. The combined annual shipment volumes in El Salvador, Guatemala and Panamaare forecasted to reach more than 82,000 units in 2029 – up from around 10,000 units in 2023.