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Global Power Grid Faces 80 Million km Challenge

Financial Times Companies •
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António Guterres launched the Global Grids Accelerator to add or replace 80 million kilometres of power lines by 2040 for the clean energy transition. The initiative aims to bring together governments, investors, and experts to improve grid infrastructure, focusing initially on Africa and Southeast Asia. As of last year, 1,700 gigawatts of renewable projects and 600 gigawatts of battery storage were stuck in grid connection queues, according to the IEA.

Many connected wind and solar projects face curtailment due to inadequate transmission, forcing reliance on more expensive fossil power. Key barriers include lengthy permitting (often over a decade), technical challenges from integrating dispersed renewables, and soaring costs—transformer prices have risen sharply in five years. Annual grid investment rose from $300bn in 2020 to $400bn in 2025 but must increase by 50% by 2030 to meet demand, per the IEA.

The issue is especially pressing in Europe due to high electricity prices affecting competitiveness and in the US, where data centres and AI are driving unprecedented demand growth.