Smart grid infrastructure investment by 45 emerging market countries – including Brazil, Russia, India, China and South Africa – over the next decade will reach $274.9 billion, outpacing developed countries. This investment will be aimed at reducing electricity theft, improving reliability and incorporating renewable energy into electricity grids, according to a study released today by Northeast Group, LLC.
The annual study, Emerging Markets Smart Grid: Outlook 2014, found that investments will include smart metering and advancements for transmission and distribution grids. Already, the 45 countries have deployed a total of 9.5 million smart meters with two-way communications and this number is set to reach 523 million by 2023. In 2014 alone, the 45 countries are projected to deploy 5.6 million smart meters. Electricity theft costs these countries $47 billion annually. Investment in distribution network technology, or distribution automation, will cumulatively reach $118.8 billion by 2023.
“Our third volume of this annual study pinpoints where smart grid investments will occur in emerging markets,” said Ben Gardner, president of Northeast Group. “Large countries such as India and Turkey have provisional smart meter deployment targets and new financing sources are developing. In 2013, the World Bank announced a $180 million smart metering project in Uzbekistan, the EBRD earmarked $251 million for smart grid investment in Poland and Brazil is completing a national financing program that could release over $1 billion in smart grid funding. Overall, Latin America, CEE and MENA represent large near-term opportunities, with India set to grow in the longer term.”