The global electricity grid will require adding or replacing 80 million km of grids by 2040 to meet climate targets and support energy security, according to the International Energy Agency.
A new IEA report on global electrical grids said that a “lack of ambition and attention” risks making electricity grids the “weak link” within the global transition to clean energy.
The agency said that grid investment needs to double to more than $600bn (£495bn) a year by 2030, or electrical grids could become a barrier to the deployment of renewables and electric transport options – risking climate catastrophe and frequent blackouts.
The report found that 80 million kilometres (49.7 million miles) of transmission lines will be needed by 2040 in order for countries to meet their climate goals and energy demands. This is roughly equivalent to the total number of miles of electrical grid that currently exist in the world, according to the IEA.
The lack of investment in the sector is already having an impact, the agency added, indicating the growing number of renewables projects that are waiting for the green light to connect to the grid. This includes 1500GW in advanced stages of development – five times the total amount of solar and wind capacity added worldwide last year.
“The recent clean energy progress we have seen in many countries is unprecedented and cause for optimism, but it could be put in jeopardy if governments and businesses do not come together to ensure the world’s electricity grids are ready for the new global energy economy that is rapidly emerging,” said Fatih Birol, IEA executive director.
“This report shows what’s at stake and needs to be done. We must invest in grids today or face gridlock tomorrow.”
In its report, the IEA highlighted that the rapid pace of electrification accompanying the transition to electric cars and heat pumps means more electricity is required, as societies move away from fossil fuels.
In this context, the agency looked at a hypothetical scenario, the Grid Delay Case, which examined what would happen if grid investment were not scaled up quickly enough and regulatory reforms for grids were slow. The simulation found that this scenario would increase CO2 emissions by 60 billion tonnes between 2030 and 2050 due to a slower rollout of renewables.
To avoid this, the report called on governments to expand and strengthen grid interconnections both within countries and between countries and regions. It also recommended that they back large-scale transmission projects to ensure that grids are prepared for further strong growth in renewable power.
In addition, the IEA urged grid developers and operators to embrace digitalisation so that the grids of the future can be more resilient and flexible.
“Today’s IEA report is a wake-up call that the progress made to date in renewables deployment could be put in jeopardy without decisive, immediate action to modernise our grids,” said Matthew Boulton, director of Solar, Storage and Private Wire at EDF Renewables.
Action should be taken as soon as possible, the report stressed, as new grid infrastructure often takes five to 15 years to plan, permit and complete – compared with one to five years for new renewables projects and less than two years for new electric vehicle charging infrastructure.
