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Electricity Grids and Secure Energy Transitions report released by the International Energy Agency

Electricity Grids and Secure Energy Transitions report released by the International Energy Agency

The backbone of today’s electricity systems, grids are set to become increasingly important as clean energy transitions progress, but they currently receive too little attention. Grids have been delivering power to households, businesses and industry for over 100 years. Clean energy transitions are now driving the transformation of our energy systems and expanding the role of electricity across economies. As a result, countries’ transitions to net zero emissions need to be underpinned by bigger, stronger and smarter grids.

At least 3 000 gigawatts (GW) of renewable power projects, of which 1 500 GW are in advanced stages, are waiting in grid connection queues – equivalent to five times the amount of solar PV and wind capacity added in 2022. This shows grids are becoming a bottleneck for transitions to net zero emissions. The number of projects awaiting connection worldwide is likely to be even higher, as data on such queues is accessible for countries accounting for half of global wind and solar PV capacity. While investment in renewables has been increasing rapidly – nearly doubling since 2010 – global investment in grids has barely changed, remaining static at around USD 300 billion per year.

The report provides a first-of-its-kind stocktake of grids worldwide.

Key highlights

Grid length development in advanced economies in the Announced Pledges Scenario, 2021-2050

 

Grid length development in emerging market and developing economies in the Announced Pledges Scenario, 2021-2050

 

Average annual investment in grids and renewables by regional grouping in the Announced Pledges Scenario, 2011-2050

 

Challenges for grid of the future

Significance of electricity grids for secure energy transitions: to decarbonize electricity supply, to integrate renewable energy, for efficient exchange of clean electricity between countries, etc.

Recommendation

Initiatives taken for grid development

Global

National

 

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