Electricity grids, the backbone of power systems, are facing unprecedented challenges. The surge in electric vehicles (EVs), heat pumps, and renewable energy projects is pushing grids to their limits. In October 2023, the International Energy Agency (IEA) released its report titled ‘Electricity Grids and Secure Energy Transitions’, highlighting the critical issue that grids are not keeping pace with the evolving global energy landscape.
As the share of variable renewables increases, power systems must become more flexible to adapt to changing output. The acceleration of renewable energy deployment necessitates the modernisation of distribution grids and the establishment of new transmission corridors to connect renewable resources. The IEA report reveals that achieving national goals necessitates the addition or renovation of over 80 million km of grids by 2040, equivalent to the entire global grid. In a scenario aligned with national climate goals, the need for system flexibility doubles between 2022 and 2030. However, the challenge lies in the bottleneck created by grid connection queues. Delays in grid investment and modernisation could have consequences including hindering transitions, leading to slower adoption of renewables and increased reliance on fossil fuels. The environmental toll of this is substantial, with cumulative carbon dioxide emissions projected to be 58 gigatonnes higher by 2050.
To align with evolving energy needs and climate goals, IEA suggests that regulations must be revamped to support the deployment of new grids and optimise existing assets. Encouraging grids to adapt to dynamic electricity demands involves addressing administrative barriers, recognising high performance, and fostering innovation. Regulatory risk assessments need enhancement for efficient infrastructure expansion. Strategic planning for transmission and distribution grids should closely align with long-term government processes, integrating insights from energy transition plans and engaging stakeholders for public awareness. Meeting national climate targets requires a significant boost in grid investment, with a focus on digitalisation. However, financial health, public acceptance, and regulatory reform could emerge as key challenges in the process.
As countries strive for net-zero emissions, the role of electricity grids is very critical. The report underscores the urgency for immediate action, presenting a roadmap for policymakers to build resilient, modern, and interconnected grids that will support a sustainable energy future.
The full report can be accessed here.
