The market in South America is driven by the increasing demand for the energy as a service for reducing the buildings’ energy cost and deployment of smart meters.
South America energy as a service market is expected to grow at a CAGR of 9.8% to reach USD XX million in 2027 from its recorded value of USD 4,996.33 million in 2019.
Brazil has been known for implementing and decentralizing its electricity systems on a large scale. In Brazil, the Distribution System Operators (DSO) are implementing smart meters extensively by recovering operational costs through network tariffs due to the country’s inefficiency in separating supply and transmission activities. For instance, in 2019, the Eletrobras Distribution Rehabilitation project initiated distributing AMI meters with telemetering capability to low voltage (LV) users on a large-scale. This resulted in benefitting four million consumers in six states of Brazil and lowered the financial losses of several distribution companies.
Furthermore, The Brazilian Electricity Regulatory Agency (ANEEL) has been extending the smart meter migration up to 250KWh, new consumers opting for the time of use tariffs, and the other distribution companies are aggressively aiming to replace the old meters in the country. Brazil held the highest market share of 78.% in the year 2019. Deployment of smart meters is expected to drive Brazil energy as a service market. It is likely to reach USD 8,367.50 million in 2027 from its recorded value of USD 3,918.62 million in 2019.
Apart from the deployments carried out by electric energy companies and/or cooperatives with the financial support of national and international organizations, Argentina has developed an uncoordinated but important process of installation of smart meters. This phenomenon has occurred mainly in electric cooperatives of small towns with rural and semi-urban demographics, where smart meters began to be installed due to a question of facilitating the consumption reading processes of users located in the far downtown area.
According to reports from different sources, there are more than 30,000 smart meters operating in small inland locations such as Vicuña Mackenna, Las Varillas, Justiniano Posse, Freyre and Gaiman. In all these cases, the smart meters were first installed in rural environments, with the aim of reducing reading times and costs for these clients, and due to the success obtained, the installation continued to the central area and surrounding neighborhoods.
Hence, the recent approval of national laws to regulate distributed generation, the promotion regimes for the use of renewable energy sources, and initiatives to improve the supply of electric energy are key factors that drive the development of smart grids and smart meters in Argentina for the coming years, which further drives the energy as a service market in Argentina.
Energy as a service market in Argentina is likely to reach USD XX million in 2027 from its recorded value of USD 420.19 million in 2019. On the other hand, the energy as a service market in the Rest of South America is likely to reach 1,037.91 million in 2027 growing at a CAGR of 6.2%.
Enel is a key driver for smart grids in the region, as it is progressively bringing smart metering to its regional subsidiaries following the leading role which the firm is playing in the power digital transformation in Europe. Enel is increasing its presence across the region in all stages of the power industry, but especially in power distribution and is active in Argentina, Peru, Chile, Colombia and Brazil, – where it has just acquired former AES’s Eletropaulo, the largest distribution company in Brazil in terms of number of clients- and has deployed several smart grid pilot projects.
With the proliferation of EaaS, Siemens Financial Services (SFS) is accompanying Siemens through the transformation of new energy resources and new business models. Recently, SFS invested in a Brazil-based start-up, Micropower-Comerc (MPC), to deliver solar and battery storage to commercial and industrial clients (C&I). Leveraging SFS’s investment expertise and capital resources, Siemens – with MPC – will help shape Brazil’s energy transition to a more decentralized energy network. This also is a major positive for the environment as batteries will replace diesel generators for backup energy.
MPC has helped introduce Brazil to the battery-storage-as-a-service (bSaaS) model, which provides cleaner, more reliable power at a lower cost to the Brazilian C&I market. Acquiring 20% stake in MPC, this is SF's first bSaaS investment and positions SFS to replicate this type of investment elsewhere.
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