Advanced transmission technologies Strengthening regional transmission systems will require the adoption of a wide set of advanced technologies that enhance capacity, flexibility and efficiency. These grid-enhancing technologies (GETs) include dynamic line rating (DLR), flexible AC transmission systems (FACTs), power flow control devices and high-performance conductors – all of which can help optimize the use of existing infrastructure and defer costly new builds.In parallel, HVDC systems offer a scalable solution for efficiently transmitting electricity over long distances, particularly between remote renewable energy generation zones and urban demand centres. HVDC is also relevant for enhancing regional interconnection and supporting the integration of variable renewables across geographies. Scaling these technologies will require streamlined permitting, targeted investment incentives and stronger regulatory recognition of their value within national and regional planning frameworks. CASE STUDY 6 Rio Madeira HVDC link in Brazil18 In Brazil, HVDC technology has been vital in strengthening grid reliability and enabling long-distance clean energy transmission. The Rio Madeira HVDC link connects hydroelectric plants in the Amazon to major demand centres in southeastern Brazil. Spanning almost 2,400 km, the ±600 kilovolts (kV) system delivers 3,150 megawatt (MW) of renewable power from Porto Velho to Araraquara with minimal transmission losses, while simultaneously transmitting power to the surrounding AC network in northwest Brazil. This project, one of the largest of its kind in Latin America, supplies electricity to over 10 million households and helps avoid around 22 million tonnes of CO2 emissions annually. By integrating advanced converter stations and proven HVDC design, the system ensures grid stability while reducing reliance on fossil fuels. Advanced energy storage solutions Scaling grid-connected and distributed energy storage will be critical to enhancing system flexibility, reliability and renewables integration. A diverse set of storage technologies – including lithium-ion batteries, long-duration storage (e.g. flow batteries, pumped hydro and compressed air) and hybrid solutions combining multiple storage types – can help shift excess renewables generation, provide peak shaving and deliver ancillary services such as frequency regulation and voltage support. Integrating storage into T&D planning can defer costly network reinforcements, improve asset utilization and enhance resilience to extreme weather events. This can be further combined with demand response mechanisms to increase flexibility. Accelerating deployment will require clear market signals that value the multiple services of storage, technology-neutral procurement frameworks and regulatory reforms to enable both grid operators and market participants to invest in storage at scale. These must be supported by targeted incentives and streamlined permitting.Inverter-based resources for grid stability The growing penetration of inverter-based resources – including solar PV, wind power, battery storage and hybrid plants – is transforming the region’s power systems. While these technologies offer rapid response and controllability, their displacement of synchronous generators can reduce inertia and fault current, challenging stability in weak or isolated grids. Advanced grid-forming inverters, virtual synchronous machine controls and synthetic inertia can provide essential services, but in LAC, adoption is limited by high capital costs, lack of dedicated remuneration and competing investment priorities. Scaling these capabilities will require integrating stability requirements into renewable energy tenders and PPAs, establishing ancillary service markets and mobilizing concessional finance and co- investment from multilateral banks. Policy and financial frameworks should recognize and reward stability services, embedding them in long-term planning to enable higher shares of renewables without compromising reliability. Advancing Latin America’s Power System Transformation 12

Advancing Latin America%27s Power System Transformation 2025