Power grids: the new challenge of the energy transition

Global efforts to combat climate change and ensure reliable electricity supply are at risk of falling short unless policymakers and businesses act swiftly to upgrade and expand power grids. A recent report by the International Energy Agency (IEA) highlights the urgency of the situation.
👉 https://www.iea.org/news/lack-of-ambition-and-attention-risks-making-electricity-grids-the-weak-link-in-clean-energy-transitions

The current challenges of electricity grids

Power grids—vital for supplying homes, factories, and infrastructure—are increasingly strained by the rapid rise of clean energy technologies such as solar, wind, electric vehicles, and heat pumps. Without appropriate investments and policy support, existing infrastructure won’t be able to keep up, threatening the goal of limiting global warming to 1.5 °C.

Infrastructure needs by 2040

To meet climate and energy targets, the world will need to add or replace 80 million kilometers of power lines by 2040—equivalent to the entire current global grid. This will require doubling annual investment to more than $600 billion per year by 2030.

Grid congestion is slowing renewables

At present, many renewable energy projects are stuck waiting for grid connection, representing over 1,500 gigawatts of capacity. These delays are significantly holding back the energy transition.

The impact of delayed investment

One scenario in the report shows that insufficient investment and slow reforms could result in an additional 60 billion tonnes of CO₂ emissions between 2030 and 2050. This would jeopardize the goals of the Paris Agreement and increase the risk of exceeding 2 °C of global warming.

Strategic actions needed

To overcome these challenges, the report calls for expanding and strengthening grid interconnections within and between countries, and accelerating digitalization to boost grid resilience and flexibility. It is crucial for governments to support large-scale transmission projects.

Conclusion

Modernizing and expanding global power grids is urgent to meet climate goals and ensure secure, reliable energy. Policymakers and companies must work together to build infrastructure that can rise to the demands of the energy transition. Investing in the grid today is essential to avoid tomorrow’s bottlenecks—and to make a successful clean energy future possible.