Potential of Grid Enhancing Technologies for Transmission in Latin America and the Caribbean

Why It Matters

Accelerating GET adoption will safeguard grid reliability while unlocking further renewable investments, a critical step for LAC’s clean‑energy transition. Policymakers and investors can use the study to target reforms that lower barriers and accelerate capital flows.

Key Takeaways

• Renewable growth strains LAC transmission infrastructure
• GETs improve grid reliability and capacity
• Large market opportunity emerges as renewables expand
• Regulatory frameworks often lag behind technology deployment
• Policy harmonization and financing are critical for adoption

Pulse Analysis

Latin America and the Caribbean are witnessing an unprecedented surge in solar, wind, and hydro projects, driven by ambitious climate targets and declining technology costs. Existing transmission corridors, many built decades ago, are now operating near or beyond their design limits, leading to congestion, higher curtailment rates, and increased outage risk. Utilities and grid operators are therefore under pressure to modernize infrastructure without the lengthy timelines and high capital outlays associated with building new lines.

Grid‑Enhancing Technologies—such as dynamic line rating, series compensation, advanced conductors, and flexible AC transmission systems—offer a pragmatic alternative. By leveraging real‑time data, power electronics, and material innovations, GETs can increase the effective capacity of existing assets, improve voltage stability, and reduce thermal losses. These solutions are modular, often requiring less land acquisition and permitting effort than traditional expansion, making them attractive for densely populated or environmentally sensitive corridors.

The IDB Invest study projects a multi‑billion‑dollar market for GETs in LAC by 2030, contingent on supportive regulatory frameworks. Current barriers include fragmented standards, limited financing mechanisms, and a shortage of technical expertise. Aligning tariffs, creating incentives for private investment, and establishing regional standards can accelerate deployment. For investors, early entry into GET projects promises stable returns linked to the broader renewable rollout, while governments stand to enhance grid resilience and meet renewable integration goals more efficiently.