Abierto al públicoBeyond BordersCaribbean Development TrendsCiudades SosteniblesEnergía para el FuturoEnfoque EducaciónFactor TrabajoGente SaludableGestión fiscalGobernarteIdeas MatterIdeas que CuentanIdeaçãoImpactoIndustrias CreativasLa Maleta AbiertaMoviliblogMás Allá de las FronterasNegocios SosteniblesPrimeros PasosPuntos sobre la iSeguridad CiudadanaSostenibilidadVolvamos a la fuente¿Y si hablamos de igualdad?Home
Citizen Security and Justice Creative Industries Development Effectiveness Early Childhood Development Education Energy Envirnment. Climate Change and Safeguards Fiscal policy and management Gender and Diversity Health Labor and pensions Open Knowledge Public management Science, Technology and Innovation  Trade and Regional Integration Urban Development and Housing Water and Sanitation

Energía para el Futuro

Regulatory recommendations to encourage the deployment of digital smart metering

por - Leave a Comment


The deployment of Digital Smart Metering (DSM) is essential to achieve the digitalization of a more decentralized and decarbonized energy sector, and to provide the main energy sector agents access to immediate, reliable, and harmonized data for decision-making.

Smart meters are electronic devices that measure and record electricity consumption in real-time and allow for two-way communication between the meter and the electricity company. DSM creates economic efficiencies for electrical systems, optimizes their security, and improves quality and service continuity. SDM also contributes to the development of new markets and business models and offers the consumer greater empowerment.

DSM could be an effective technological solution to modernize the energy systems in Latin America and the Caribbean (LAC) countries and help decarbonize the region. However, DSM deployment in most LAC countries is still nascent compared with other regions of the world. According to 2020 data, it is approximately 3.5%, compared with 50% in the US and 30% in the European Union[1].

What does regulation need to consider to encourage greater SM deployment?

The rapid and correct deployment of DSM in LAC depends on regulators appropriately signaling energy sector agents to make the necessary investments. Today there are a number of examples that help identify the most effective regulatory practices, as well as mistakes that should be avoided. In this context, the Inter-American Development Bank (IDB), with the support of Deloitte, developed a study to serve as a guide for regulators and government institutions who are interested in encouraging the deployment of SM.

The study identifies key issues that should be considered in the DSM decision-making process, particularly in the initial deployment. The goal is to approach this process with more guarantees and resource optimization. Some of the recommendations highlighted are:

  1. Identify the needs DSM must address, to better design a process that specifically responds to them.
  2. Conduct a cost-benefit analysis regarding its economic feasibility, considering the entire technological ecosystem around DSM.
  3. Define a national strategy that sets objectives and prioritizes key actions in the process.
  4. Design a robust regulatory environment, encouraging deployment, as well as guaranteeing the materialization of the expected benefits of DSM, in a proper control environment.

If you want to know more, don’t miss the launch of the publication “Smart metering in Latin America and the Caribbean: Regulatory recommendations to encourage the deployment of digital smart metering appropriate to the needs of each country” on April 13, 2023, on 10:00 am (EDT). The event will include discussions about the importance of regulation to encourage the deployment of SM, as well as experiences in LAC countries and other regions. Register now

[1]   GPR Economía (2020). “IDEAL 2019/2020. Documento sectorial: energía eléctrica” [IDEAL 2019/2020 Electric Energy Sectoral Document]


José Irigoyen

José Irigoyen works as a Lead Operations Specialist in the Energy Division of the Inter-American Development Bank. His focus is on the digital transformation and decarbonization and resilience of the energy sector in Latin America and the Caribbean. Previously, he was the Operational Advisor in the Infrastructure and Energy Sector. At the IDB, he also served as Country Coordinator for Haiti in the program for the reconstruction effort after the 2010 earthquake, and I as Coordinator of the Mesoamerica Regional Integration Project. Irigoyen joined the IDB in 2004 as a consultant on citizen security and sustainable tourism. An Argentine citizen, Irigoyen holds a bachelor's degree in economics from the University of San Andrés (Argentina) and a master's degree in economics and finance from the University of Navarra (Spain).

Juan Cárdenas

Juan Carlos Cárdenas es Economista en la División de Energía del BID en Washington D.C. y brinda apoyo técnico y operacional al portafolio de proyectos energéticos en América Latina y el Caribe. Su trabajo se enfoca en la promoción del uso de energías renovables, el acceso a energía y las reformas de política energética. Previo al BID, Juan Carlos trabajó en la Práctica Global de Energía y Extractivas del Banco Mundial en Washington D.C., el Grupo de Energía de Bogotá y la Secretaría de Planeación Distrital de Bogotá D.C. Juan Carlos tiene un Máster en Administración Pública (MPA) del School of International and Public Affairs de Columbia University, y es Máster en Ciencias Económicas y Economista de la Universidad Nacional de Colombia.

Reader Interactions

Leave a Reply

Your email address will not be published. Required fields are marked *