The road to a net-zero future requires many more power grids

More than 1,650 gigawatts of wind and solar projects in advanced stages of development are waiting for grid connections around the world. Reuters

Electricity is powering a global transformation. From rapid urbanisation and industrial expansion to electric vehicles lining our roads and the rise of AI-driven data centres, the demand for clean, reliable power is surging – and with it, the urgency to accelerate the energy transition. Yet, while renewable energy deployment is scaling at an unprecedented pace, driven in large part by cost advantages, one critical component remains significantly underdeveloped: our electricity grids.

The energy transition is no longer constrained by our ability to generate enough clean power. The challenge now lies in delivering it to where it is needed swiftly, reliably and at scale.

Global electricity consumption grew by nearly 1,100 terawatt hours in 2024 alone – more than triple the UK's annual consumption. This increase is not confined to fast-growing economies; even mature markets are seeing spikes in demand due to factors such as industrial electrification, electric vehicles and data-driven industries like AI.

However, the grid infrastructure that underpins this revolution is struggling to keep pace. More than 1,650 gigawatts of wind and solar projects in advanced stages of development are waiting for grid connections – this is equivalent to about six times Germany’s total installed power capacity. Ageing infrastructure, extended permitting timelines and equipment bottlenecks are holding back progress.

The result is that clean energy capacity is growing rapidly but the required expansion and modernisation of critical grid infrastructure to deliver this clean power reliably is falling behind. This gridlock is not a future threat – it is a current and very real risk. Last month, a power failure across Portugal, Spain and parts of France demonstrated how even well-established systems are vulnerable.

What is required is a fundamental reimagining of our grids. Beyond just expanding capacity, we need to develop intelligent, dynamic systems that can respond in real time to supply and demand fluctuations.

AI, while adding to electricity demand, can also be part of the solution. It can balance loads, predict surges and identify faults in the grid before they escalate into outages.

But none of this can happen without an enabling policy environment.

The result is that clean energy capacity is growing rapidly but the required expansion and modernisation of critical grid infrastructure to deliver this clean power reliably is falling behind

The most pressing challenge is not technical – it is regulatory. Technologies are proven and capital is available. What investors and energy developers require is clarity, speed and confidence. It is imperative that planning rules, permitting procedures and regulatory environments are modernised and energy companies are incentivised to proceed with critical grid projects.

Enabling this transformation requires close co-ordination between regulators, utilities, investors and technology providers – a key priority of the World Utilities Congress being held in Abu Dhabi until May 29. Global grid investment needs to reach an estimated $717 billion annually between now and 2030. For capital to flow where it is most needed, governments must provide a stable, predictable regulatory environment that rewards long-term investment in infrastructure.

This is where collaboration plays a pivotal role. Initiatives like the Utilities for Net Zero Alliance (Uneza), a global coalition of more than 55 utilities and partners, are helping accelerate this effort. By uniting utilities across markets, Uneza aims to overcome shared grid challenges, align investments and scale impact. With more than $117 billion in annual energy transition commitments, the alliance represents a powerful force for change.

This spirit of collaboration must also extend to supply chain resilience. Supply chains must be diversified and de-risked to avoid delays in critical grid components such as transformers, conductors and control systems. Governments and industry must work together to streamline procurement processes, promote domestic manufacturing and reduce dependency on single-source suppliers.

Equally important is the role of public engagement. As utilities push ahead with grid expansion projects, community support will become increasingly important. Building public trust through transparency, inclusion and a clear articulation of benefits – such as job creation, improved reliability and reduced emissions – will be essential to securing social licence and accelerating delivery timelines.

The age of electrification is here. But without bold action on grids, the energy transition will stall. Now is the time to act with conviction, with capital and with clear policy leadership. The net-zero future is still within reach. Let’s build the infrastructure to deliver it.