CASE STUDY 4 Brazil’s climate and ecological transformation initiative16 The BIP initiative, aimed at boosting investment in climate and ecological transformation in Brazil, serves as a government-led mechanism to connect transition-aligned projects with financial institutions. By aligning project selection with national climate priorities, BIP helps build a pipeline of bankable initiatives and facilitates access to both public and private capital. The platform supports efficient matchmaking and reduces transaction barriers, offering a replicable model for mobilizing climate finance at scale. Barriers Grid development in LAC continues to face a range of technological and operational barriers that delay implementation and deter investment. These challenges stem primarily from two structural pressures: capacity and complexity. On the capacity side, LAC must significantly expand and modernize its T&D networks— requiring integrated planning, efficient execution and designs that account for long-term system resilience. At the same time, rising system complexity – driven by growing shares of variable renewables and increasingly dynamic demand patterns – calls for deeper digitalization, advanced power electronics and smarter operational practices to maintain grid stability and adaptability. Delivering on these fronts will require sustained and well-targeted investment across the entire power system. While resilience must be embedded into both planning and operations, additional stressors such as climate-related disruptions and cybersecurity threats require dedicated investments in system hardening, real-time monitoring and institutional preparedness to ensure long-term reliability.Solutions Technology solutions will be critical to addressing the dual challenges of capacity and complexity in the LAC power systems. The working group has identified some of the most impactful technology solutions that can help accelerate the development of faster, smarter and more resilient electricity networks across the region. Digitalization to drive grid intelligence Emerging digital technologies offer powerful tools to enhance the intelligence, responsiveness and efficiency of power grids. Advanced sensing, real- time monitoring and data-driven control systems can significantly improve visibility across substations and distribution lines – often critical vulnerability points in Latin American networks. These solutions enable automated fault detection, faster decision-making and more efficient maintenance and planning. By reducing reliance on manual operations and enabling virtualization of key functions, digitalization can optimize both capital and operational expenditures.2.3 Technology and operations CASE STUDY 5 Colombia’s QED application17 In Colombia, the application of quantum edge devices (QED) has demonstrated remarkable potential to enhance grid flexibility and resilience. A pilot deployment involved a network of decentralized QEDs, coordinated through a central control platform capable of monitoring real-time consumption and managing switchgear operations remotely.During peak stress events, the system enabled targeted demand reduction using advanced optimization algorithms. In one instance, participation from just 21 commercial and industrial customers – representing only 0.01% of the user base – contributed to a grid-wide demand reduction of over 12%, helping to prevent service disruptions for more than 300,000 customers. Advancing Latin America’s Power System Transformation 11

Advancing Latin America%27s Power System Transformation 2025