Smart Grids for the Energy Transition in Latin America and the Caribbean: Progress, Gaps, and the Outlook in Costa Rica

Abstract

Digitalization and smart grids are key pillars in the global energy transition toward more sustainable, efficient, and decentralized systems. These rely on technologies such as the Internet of Things (IoT), advanced analytics, and blockchain to optimize energy management, distribution, and consumption. In Latin America and the Caribbean (LAC), the implementation of these technologies faces major challenges, including outdated electrical infrastructure, low interoperability, limited investment in storage, and cybersecurity risks. Regulatory barriers also persist, such as the absence of clear frameworks, outdated tariff schemes, and institutional resistance to change.