Latin America: innovation in grid modernization and hybrid systems Latin America has one of the world’s cleanest power mixes, with renewables supplying about 69% of electricity, led by hydropower, wind and solar respectively. Reliance on hydropower, transmission bottlenecks and long distances between resource and demand centres create climate-related volatility and curtailment. In 2024, over 50 TWh of renewable generation was lost to congestion – equal to the annual use of more than 10 million households.64 In Brazil, clean energy resource areas and demand centres remain poorly connected,65 despite the 2024 transmission auction mobilizing nearly $4 billion to build new lines.66 In Chile, long north-south distances caused curtailment of about 10% of solar output in 2024.67 Latin America’s focus is shifting from adding clean generation to building systems that can reliably integrate it. Grid modernization, digitalization and regulatory upgrades are advancing, with countries improving transmission planning, expanding storage and deploying forecasting and control tools. New financial instruments and sustainability standards are also improving project bankability. The next step is regional integration – linking markets, harmonizing regulation and enabling green manufacturing hubs. With digital, interconnected grids, Latin America can turn its clean energy potential into competitive advantage and expand low-carbon exports. To gain further perspective on these insights, please refer to the Forum’s October 2025 report, Advancing Latin America’s Power System Transformation.68 Latin America’s focus is shifting from adding clean generation to building systems that can reliably integrate it. Grid modernization, digitalization and regulatory upgrades are advancing. Uruguay demonstrates how coordinated planning, policy and innovation can transform a national power system. In less than two decades, it has shifted to a ~98% renewable electricity mix – primarily biomass, hydro, solar and wind – phasing out fossil fuels that once supplied a third of its power and reducing power costs and prices.69 The country’s modern grid enables smart-grid applications such as predictive maintenance and real-time optimization. Intelligent metering, automation and data analytics projects are advancing with support from the Inter-American Development Bank. Tax incentives under the Investment Promotion Law are drawing private investment into smart infrastructure and energy storage and complement upcoming green hydrogen and e-fuels projects.70Uruguay’s experience – which includes use of capacity auctions and a central role for the system operator – shows that policy design, risk-sharing and system alignment are as important as technology. With regulatory clarity and investment-supporting principles, the country unlocked private capital and quickly scaled-up renewables, creating a cleaner, more reliable and affordable power system that strengthened energy security, competitiveness and jobs. Although every system has different constraints, Uruguay demonstrates how alignment across policy, planning and investment can create the conditions for innovation to scale up, delivering both climate leadership and commercial advantage, offering lessons that other countries can adapt to accelerate their clean growth while keeping systems resilient and costs manageable. CASE STUDY Uruguay – innovation through policy alignment Electricity Reinvented: How Innovation is Transforming the Future of Power Systems 13

Electricity Reinvented 2026