ENERGO: Grids could be weak link in energy transition

Efforts to tackle climate change and ensure reliable supplies of electricity could be put at risk unless policy-makers and companies quickly take action to improve and expand the world’s electricity grids, according to a new special report by the IEA.

Without greater policy attention and investment, shortfalls in the reach and quality of grid infrastructure could put the goal of limiting global warming to 1.5 °C out of reach and undermine energy security, the report warns.

Electricity Grids and Secure Energy Transitions finds signs that they are not keeping pace with the rapid growth of key clean energy technologies such as solar, wind, electric cars and heat pumps.

Achieving all national climate and energy goals will require adding or replacing 80mn kilometres of power lines by 2040 – an amount equal to the entire existing global grid. Major changes to how grids operate and are regulated are also essential, while annual investment in grids, which has remained broadly stagnant, needs to double to more than $600bn a year by 2030.

The report identifies a large and growing queue of renewables projects waiting for the green light to be connected to the grid, pinpointing 1,500 GW worth of these projects that are in advanced stages of development. This is five times the amount of solar PV and wind capacity that was 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 IEA Executive Director Fatih Birol. “We must invest in grids today or face gridlock tomorrow.”