4.4.1 INFRASTRUCTURE DEVEL OPMENT
Infrastructure development plays a crucial role in driving the demand for distribution transformers in both North and Latin
America. The ongoing growth in urbanization, industrialization, and the expansion of power networks is fuelling the need for
efficient and reliable electricity distribution systems. In both regions, new construction projects, including residential,
commercial, and industrial developments, require robust power infrastructure, where distribution transformers are essential for
stepping down high-voltage electricity to usable levels for consumers and businesses. In North America, infrastructure development is particularly evident in the construction of new residential complexes,
commercial buildings, and industrial facilities, especially in rapidly expanding urban areas. This urbanization results in a greater
demand for energy, and to meet these needs, the region must upgrade its power distribution systems. Distribution transformers
are critical in ensuring reliable electricity delivery to these new developments, helping to improve grid efficiency and reduce
energy losses. For example, cities like Austin, and Phoenix, Chicago, which have witnessed substantial population growth in recent years,
require the installation of additional transformers to ensure that power is distributed effectively to meet the needs of expanding
residential and business sectors.
With a growing demand for smart infrastructure and green technologies, the need for modern,
high-efficiency transformers is growing. Canada’s focus on green energy infrastructure and sustainability has spurred significant investments in grid upgrades, particularly
in provinces like Ontario, where increasing urbanization requires the deployment of modern transformers to ensure reliable
electricity distribution. The adoption of smart grid technology and advanced distribution transformers is a key part of these
efforts, as they allow for better load management and enhance the efficiency of power systems. In Latin America, infrastructure development is closely linked to the need for rural electrification and the expansion of power
networks to underserved areas. Countries such as Brazil, Mexico, and Argentina are focusing heavily on expanding their
electricity grids to provide reliable power to rural and remote regions that have historically lacked access. As governments invest
in new power infrastructure, distribution transformers are required to ensure that the power generated in centralized plants can
be efficiently distributed to these far-reaching areas. In Brazil, the government has undertaken large-scale infrastructure projects aimed at improving the power distribution network
in rural areas, such as the "Luz para Todos" (Light for All) program.
This initiative aims to provide electricity to remote regions,
improving living standards and supporting economic development. The installation of distribution transformers is a vital part of
this program, ensuring that power is efficiently distributed to rural households and small businesses. For instance, Iberdrola,
through its subsidiary in Brazil, Neoenergia, has signed an agreement to start a new phase of the Luz para Todos (“Light for All”)
programme, the largest rural electrification initiative in Latin America, in Bahia, in collaboration with the Federal Government
of Brazil. This new phase envisages 29,500 grid connections between 2024 and 2026, a planned investment of R$1.2 billion
(over €197 million euros) and more than 10,200 projects throughout the state. Mexico is another example of Latin American countries expanding infrastructure to improve energy access. The national utility
company, Comisión Federal de Electricidad (CFE), has been focused on modernizing its power distribution systems and
extending coverage to rural and underserved areas. As part of Mexico’s energy reform, new transformers are being deployed to
ensure reliable power delivery, particularly in the southern states, where access to electricity has historically been limited. These
FORECAST TO 2032
infrastructure developments are expected to drive significant demand for distribution transformers, as utilities strive to meet the
increasing energy needs of a growing population and expanding industries. In both North and Latin America, industrial growth is also creating a significant demand for distribution transformers. As
economies in these regions continue to grow and diversify, the need for a stable and reliable power supply has become crucial
for supporting industrial activities. Industries such as manufacturing, mining, and technology require robust electrical
infrastructure to power heavy machinery and support large-scale operations. For instance, in the United States, the manufacturing sector, which has seen a resurgence in certain regions, is heavily reliant on
a stable and efficient power supply. As new factories and production facilities are established, the need for distribution
transformers to handle increased electrical loads is growing. The construction of new industrial parks and facilities, such as those
related to the electric vehicle and renewable energy sectors, further boosts demand for distribution transformers. In Latin America, countries like Chile and Argentina are experiencing significant industrial growth, particularly in the mining
and agriculture sectors.
As these industries expand, they require a reliable power supply to operate machinery and support
production. In Chile, for example, the mining industry’s expansion has led to increased demand for transformers that can support
high electrical loads, as well as improvements to the national grid to ensure uninterrupted power supply to mining operations. The push for renewable energy infrastructure is another factor driving the demand for distribution transformers in both regions. As both North and Latin America i
