The increasing urgency to expand and modernise global electricity transmission networks is placing significant pressure on supply chains. A 2024 survey conducted by the International Energy Agency (IEA) sheds light on how rising infrastructure demands are influencing prices, lead times, and the dynamics of key components.
In February 2025, IEA released a report titled ‘Building the Future Transmission Grid’, developed under the Regulatory Energy Transition Accelerator (RETA) initiative. This report builds on the findings of its October 2023 report, ‘Electricity Grids and Secure Energy Transitions’ and identifies strategies for addressing challenges in the supply chain, particularly for transmission lines exceeding 66 kV.
The report explores the current state of transmission grid infrastructure worldwide and the challenges hindering its expansion and modernisation. Over the past decade, around 1.5 million km of new transmission lines have been constructed globally, but the report emphasises that inadequate transmission capacity remains a major constraint on the development of power systems, electrification, and energy security. While countries such as Europe, the United States, China, India, and certain parts of Latin America have started prioritising grid infrastructure in their national energy plans, the report highlights several emerging challenges beyond permitting delays, which are the most frequently cited reason for project hold-ups.
One of the significant issues raised in the report is the shortage of essential components required for transmission system development, such as cables, transformers, and other critical materials. As demand for these components increases due to the expanding grid infrastructure, the procurement process has become increasingly challenging. The IEA survey reveals that cables now take up to two to three years to procure while securing large power transformers can take up to four years—almost double the lead times compared to 2021. Even more specialised components, such as high voltage direct current (HVDC) cables, have extremely long wait times, extending beyond five years. This prolonged procurement process is exacerbating delays in the implementation of grid projects, causing significant setbacks in the clean energy transition. Additionally, the high demand for these components has resulted in a sharp rise in prices, with the cost of cables nearly doubling since 2019 and power transformers seeing an increase of around 75 per cent. This combination of extended lead times, rising costs, and an overwhelming backlog of orders is inflating project expenses and contributing to delays.
To address these supply chain bottlenecks, the report stresses the importance of industry-wide efforts to overcome these challenges and ensure the successful development of future transmission systems. The report acknowledges that while manufacturers are planning and investing in increasing their production capacities to meet the growing demand, such expansions will take time to materialise. Moreover, there is uncertainty surrounding the future demand levels for these components and the availability of a skilled workforce. Currently, the global workforce employed in constructing, maintaining, and operating grids stands at approximately 8 million people. However, the report estimates that at least 1.5 million additional workers will be needed by 2030 to meet the anticipated demand for grid infrastructure. The growing demand for qualified workers is another critical concern that needs addressing in the coming years.
The report offers eight key recommendations for policymakers, regulators, and industry leaders to navigate these supply chain challenges and ensure reliable transmission grid development. These recommendations include:
- Enhance visibility on future demand
- Strengthen industry dialogue
- Encourage proactive grid investment
- Design effective procurement frameworks
- Streamline permitting
- Maximise existing grid infrastructure
- Promote diverse, resilient and sustainable supply chains
- Ensure a skilled workforce
The report concludes by underlining the need for coordinated action across the entire transmission supply chain to overcome these bottlenecks. By addressing these challenges, countries can ensure that power system development keeps up with the pace of clean energy transitions.
The full report can be accessed here.
