Electricity grids are not keeping pace with the rapid growth of solar, wind, electric cars and other expanding clean energy technologies. Continuing shortfalls in grid capacity and services could prevent attainment of the goal of limiting global warming to 1.5° C and undermine energy security, according to an International Energy Agency analysis.

Achieving all national climate and energy goals will require adding or replacing 80 million km 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 $600 billion annually by 2030. The renewable energy capacity awaiting grid connection is on the rise, including 1,500 GW in advanced stages of development, which is five times the total amount of solar and wind capacity added worldwide in 2022.

Source: Unsplash/Andrey Metelev

Failure to quickly scale up grid investment and implement attendant regulatory reforms could hamper continued rollout of renewable energy technologies, increase fossil fuel consumption and swell carbon dioxide emissions by almost 60 billion tons during the 2030 to 2050 period. A global temperature hike above the Paris Agreement target of 1.5° C is predicted, with a 40% chance of exceeding 2° C.

Acknowledging the long lead times for modernizing and extending grids, immediate action is recommended to expand and strengthen grid interconnections within and between nations and regions to make electricity systems more resilient. Governments are advised to support large-scale transmission projects to ensure grids are prepared for further strong growth in renewable power. Nearly half of the world’s grid flexibility needs could be met by 2050 by demand response and battery storage. Grid developers and operators must also embrace digitalization to enable grids to be more resilient and flexible.