Electrical networks are increasingly seen as the bottleneck in modern energy systems, largely because the flow of power between generation sites and end users hinges on a robust, connected grid. Global energy analysts estimate that as much as 3,000 gigawatts (GW) could need to be linked to grids in coming years. The International Energy Agency (IEA) urges both governments and companies to accelerate delivery and modernize infrastructure to prevent instability in supply. This call is echoed by OECD-affiliated bodies, which argue that the world must either accelerate renewal or risk lagging behind climate targets and reliable security of supply. By 2040, a vast network expansion may be required, totaling tens of millions of kilometers of transmission capacity to keep pace with targets for reducing emissions and ensuring steady energy access.
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The electricity system comprises enormous links that connect production with consumption. These ranges of cables stretch along roads and through urban areas, linking one point to another. Some interconnections run underwater, serving as submarine transmission lines. The grid includes low-voltage networks that supply homes and businesses and high-voltage systems that shuttle electricity from generation sites to distribution networks and large industrial users including transportation sectors. In 2021, the IEA noted that about 80 million kilometers of transmission and distribution lines existed—an amount comparable to circling the globe two times over. This vast scale underscores the challenge: the physical backbone of electricity has not kept pace with growing demand and expanding clean-energy capacity.
Over the past decade, renewable generation—especially wind and solar—has surged, nearly doubling capacity since 2010 alongside rising electricity usage. Yet the infrastructure that connects these renewables to consumers has not progressed at the same rate. The mismatch raises questions about future growth and reliability as electrification expands into heat pumps, electric vehicles, and other sectors. The result is a need for substantial constant investment in networks to ensure smooth connections between production and consumption while maintaining affordability and security.
IEA estimates suggest that annual investment in electricity networks should reach around 300 billion dollars, with totals approaching 600 billion dollars in some assessments. Fatih Birol, the IEA’s executive director, warns that immediate, sustained investment is essential to avoid recession tomorrow. He notes that the clean energy transition has triggered unprecedented momentum, yet it could falter if collaboration between governments and private sector players does not accelerate. The world is preparing for a new energy economy, and grids must be ready to support it.
From a reliability standpoint, the grid’s weaknesses are already visible. The IEA indicates that millions of gigawatts of additional capacity are in the planning or early development stages, yet there are not enough physical wires to carry the anticipated energy. When the network lags behind, renewable deployment slows, and the risk of outages increases. Power outages impose tangible costs, with estimates around 100 billion dollars annually in some analyses, representing a small but meaningful share of global economic activity.
Less network, more emissions
Projections show that delays in building out transmission corridors could lead to higher cumulative CO2 emissions between 2030 and 2050. The IEA model scenarios suggest an increase of roughly 60 billion tons compared with expectations under current plans. That scale is comparable to the total CO2 emissions from the global energy sector over recent years and would translate into a higher long-term average temperature, potentially pushing the world well beyond the Paris target of 1.5 degrees Celsius with a notable chance of exceeding 2 degrees Celsius.
The root cause of this risk lies in continued reliance on fossil fuels for a longer period, which in turn heightens dependence on producing countries. The recommendation calls for urgent action to modernize and expand grids, including strengthening national transmission networks and creating cross-border connections. Governments are urged to support large-scale transmission projects to accommodate more renewable energy, while network developers and operators are encouraged to adopt digital technologies to build grids that are more resilient and capable of handling future demand. An integrated, digital approach is seen as essential to achieving reliable, low-emission power delivery as the energy system evolves.