July 30, 2026

The new demands on the electrical system are transforming the role of distribution networks. In the face of advancing renewable energy, distributed generation, electromobility, and the growing use of electricity across different sectors, automation is establishing itself as a key element for operating a smarter, more resilient infrastructure prepared for the challenges of the future.

For decades, electrical distribution networks were designed under a relatively stable paradigm: energy flowed in a single direction, from generation plants to consumers, while operations relied largely on manual maneuvers and a limited ability to know, in real time, what was happening in the field.

That scenario is changing rapidly. The growing incorporation of renewable generation, energy storage, electromobility, and the electrification of various sectors of the economy, along with the emergence of consumers who are also capable of producing energy, are transforming distribution into a much more dynamic system, where information acquires a value as important as the infrastructure itself. Today energy can circulate in multiple directions, forcing distribution companies to operate with greater levels of information, coordination, and responsiveness.

Added to this is a much more demanding operational context. Extreme weather events, the growing electrification of the economy, and greater regulatory requirements regarding supply continuity have significantly increased the complexity of operations. In this context, automation ceases to be understood as a technological improvement and becomes a strategic element that enables faster responses to contingencies, resource optimization, and assurance of service quality.

Automation Takes Shape in Chile

In Chile, this process has already begun, although with varying levels of development depending on the distribution companies and the characteristics of each territory. According to Patricio Valdivia Lefort, Academic at the Department of Electrical Engineering of the University of Santiago de Chile (Usach), technologies from different generations currently coexist, ranging from SCADA systems for permanent network supervision to reclosers, switching equipment, and other traditional automation systems.

“We also find older automation systems, such as static capacitor banks, used to regulate power factor and voltage levels. While progress is evident, the main constraints continue to be investment costs and the availability of trained personnel to implement and operate modern systems,” he states.

The academic adds that one of the great challenges will be to extend these levels of automation to rural networks, strengthen intelligent demand management, and incorporate the capabilities needed to respond to the growth of distributed generation, storage systems, and electromobility. In his view, these phenomena will progressively modify the way distribution networks operate and will require a much more flexible infrastructure, capable of managing bidirectional energy flows and responding to considerably more dynamic operations.

A similar view is shared by Carlos Silva, Academic at the Faculty of Engineering and Sciences of Universidad Adolfo Ibáñez (UAI) and Researcher at CENTRA, who notes that “the country’s distribution networks are undergoing a transformation process driven primarily by the Technical Standard for Quality of Distribution Systems.” Rather than imposing specific technologies, this regulatory framework raises the requirements regarding continuity and quality of service, leaving it up to each concession holder to define the most appropriate solutions to meet those standards according to the reality of their networks.

Ignacio Ugalde, Director of Power Systems for the Southern Andean Cluster at Schneider Electric, highlights that Chile has advanced strongly in renewable generation, but warns that distribution infrastructure must evolve at the same pace to respond to increasingly decentralized and demanding operations. “The growing penetration of variable renewable energy, such as solar and wind, together with new electrical demands associated with electromobility, data centers, and the electrification of various productive sectors, is accelerating the need for networks that are smarter, more flexible, and capable of operating in real time,” he comments.

However, as Felipe Ubilla, Sales Manager of Power Systems at EATON, explains, the level of adoption still varies considerably between companies and geographic areas: urban networks tend to concentrate greater advances, while rural or extensive areas continue to face limitations associated with connectivity, investment costs, and operational complexity.

When Information Begins to Operate the Network

Automation no longer consists solely of installing remotely controlled equipment. Today, the real change lies in the ability to integrate thousands of data points from different parts of the network to transform them into virtually instantaneous operational decisions.

“In this context, SCADA systems continue to be the foundation for supervising and controlling the network in real time, while more advanced platforms, such as ADMS systems, incorporate functions for analysis, interruption management, maneuver optimization, and decision-making support,” details the EATON professional.

On top of this architecture converge smart reclosers, IoT sensors, remote units, IP communications, and FLISR schemes capable of locating a fault, isolating it, and automatically restoring supply to unaffected sectors within minutes.

“To achieve this, various technologies converge that allow greater visibility over the network, optimizing its operation and responding more efficiently to changes in demand or contingencies,” explains the Schneider Electric executive.

Information coming from sensors, smart equipment, meters, reclosers, and communication systems begins to converge on platforms capable of delivering a virtually real-time view of the network’s status, facilitating faster and more precise decisions.

This integration also changes the way infrastructure is managed. Instead of reacting only when an interruption occurs, companies can advance toward predictive maintenance strategies, asset optimization, and data-based planning. The result is more efficient operation, with less need for field visits, better response times, and smarter use of existing infrastructure.

Felipe Ubilla explains that technological evolution is also occurring directly in the field through reclosers, remotely controlled sectionalizers, smart voltage regulators, self-powered fault sensors, and smart circuit breakers with greater short-circuit capacity. These solutions not only reduce service restoration times and increase operational safety, but also optimize the use of existing infrastructure, speed up fault detection and isolation, and enable new applications, such as algorithms capable of detecting possible cable theft.

At the same time, tools that just a few years ago seemed characteristic of other industries are beginning to be integrated. Digital twins, advanced analytics, and Artificial Intelligence now make it possible to simulate operational scenarios, predict faults, support predictive maintenance programs, and optimize asset management through the continuous analysis of large volumes of information. More than adding new technological layers, the goal is to convert the data generated by the network into decisions capable of improving supply continuity and operational efficiency.

Networks Prepared for a Different Electrical System

The impact of this transformation goes beyond the distribution companies’ own operations. A network automated according to the standard—as Carlos Silva details—significantly reduces fault detection and recovery times, improves continuity indicators such as SAIDI and SAIFI—now also expressed through the TIC and FIC indices—and quality-of-supply indicators, such as voltage regulation and harmonic content, among others. In addition, it strengthens the capacity to respond to increasingly frequent climate contingencies.

But the benefits go beyond service continuity. Automation facilitates the safe incorporation of distributed generation, energy storage, electromobility, and new resources capable of actively interacting with the network.

“For the end user, the benefit translates directly into resilience and quality of life, ensuring the continuity of a critical service during severe weather events,” comments Luis Gutiérrez, Academic at the Faculty of Engineering and Sciences of UAI and Researcher at CENTRA.

According to the professional, the evolution no longer aims solely at supervising infrastructure, but at massively coordinating distributed energy resources through Virtual Power Plants (VPP), capable of managing batteries and distributed generation systems as a single flexible unit. This model will make it possible to control voltages, manage congestion, and provide services to both distribution networks and transmission, transforming the traditional consumer into a true prosumer.

“The deployment of storage managed by VPPs democratizes the electrical system, allowing the consumer to cease being a passive agent and transforming them into a ‘prosumer’ who can monetize their energy surpluses, ensure backup for their own home in the face of blackouts or even for an area delimited by the VPP, and actively participate in the stability of the national electrical system,” he adds.

Automation also plays a key role in the integration of new distributed energy resources. As the incorporation of photovoltaic systems, batteries, charging stations for electric vehicles, and other technologies increases, the network requires greater levels of coordination to manage bidirectional energy flows and maintain system stability without affecting supply quality.

In this context, smart networks will make it possible to make better use of existing infrastructure, postpone investments in physical expansions when technically feasible, and enable new operating models where consumers, generators, and storage systems interact in a coordinated manner.

At the same time, advanced functions for voltage control, loss reduction, and automation will contribute to more efficient use of the network. Flexibility will cease to depend exclusively on physical infrastructure and will increasingly rely on software, advanced analytics, and automation.

Much More Than Incorporating Technology

Following the progress recorded in recent years, the main challenge no longer consists solely of incorporating new technologies, but of creating the conditions to deploy them in a coordinated, integrated way with a long-term vision. In this scenario, the determining factor is building a regulatory, operational, and human environment capable of fully leveraging these tools. Interoperability, data quality, planning, and the development of technical capabilities will be as relevant as the technological solutions themselves. In addition, it is key to strengthen cybersecurity, data management, and communications, which take on a role as important as the electrical infrastructure.

One of the central aspects—in Carlos Silva’s view—is having adequate observability of service quality, so that distribution companies can precisely identify where to make their investments and the authority can effectively supervise compliance with the standards established by regulations. From his perspective, the Chilean regulatory framework is advancing precisely in that direction, establishing performance objectives without imposing specific technological solutions, allowing each company to adopt the combination of tools most suited to its network.

Luis Gutiérrez agrees that the technology needed to move toward smart networks is already available. However, he maintains that the main challenge lies in generating regulatory incentives that drive digitalization, storage, and distributed energy resources, allowing their contribution to the flexibility and operation of the electrical system to be fully leveraged.

Along the same lines, the Usach Academic and Director of the Center for Sustainable Energy Transformation in the Productive Sectors of Chile suggests that another challenge will be to strengthen the resilience of networks against climatic events, reducing the duration of power outages through greater automation and responsiveness.

From the industry, Schneider Electric and Eaton agree that technological evolution will need to be accompanied by greater levels of interoperability, more robust communications, cybersecurity, and the strengthening of technical capabilities.

This process will also require ongoing collaboration between distribution companies, technology providers, and academia to accelerate the modernization of distribution networks.

Ultimately, the automation of distribution networks represents much more than the incorporation of new equipment or platforms. It constitutes the foundation upon which an increasingly decentralized, flexible, and demanding electrical system will operate, where the ability to monitor, analyze, and act in real time will be as important as the physical infrastructure. In a network where energy no longer merely circulates, but is also analyzed, anticipated, and managed in real time, intelligence will cease to be an additional attribute and become an essential requirement of electrical distribution.