Expanding and modernizing transmission grids is critical for a secure, affordable, sustainable energy system. The International Energy Agency (IEA) emphasizes the crucial role of grids, especially as global electricity demand grows at nearly 4% annually through 2027, driven by industrial needs, electric vehicles, heat pumps, AI, and other technologies. Strong transmission infrastructure is necessary to integrate renewable energy sources and enhance cross-border connections.
Challenges in Grid Expansion
- Inadequate Transmission Capacity: 1,650 GW of wind and solar projects are delayed due to grid connection issues, and 750 million people still lack electricity access.
- Supply Chain Bottlenecks: High demand for cables, transformers, and materials has increased prices and lead times, with some components taking over five years to procure.
- Investment Gaps: Transmission investment grew 10% in 2023 to $140 billion but must exceed $200 billion annually by the mid-2030s to meet demand, with higher needs in emerging markets.
- Workforce Shortage: To support grid modernization, the global grid workforce must expand by 1.5 million by 2030.
Solutions and Recommendations
- Increase Grid Investment: Governments should proactively expand and modernize grids to prevent delays.
- Improve Supply Chain Coordination: Enhancing collaboration between regulators, utilities, and manufacturers ensures stable supply.
- Streamline Permitting: Reducing bureaucratic delays can accelerate transmission projects.
- Optimize Existing Infrastructure: Digital technologies can improve grid efficiency and reduce the need for immediate expansion.
- Diversify Supply Chains: Reducing reliance on a few suppliers enhances grid resilience.
- Develop Skilled Workforce: Training programs should align with growing grid expansion needs.
A coordinated global effort is needed to accelerate grid expansion, streamline supply chains, and ensure a skilled workforce. Without immediate action, grid constraints will continue to slow the transition to cleaner and more reliable energy systems.
Source: IEA