Investment in grid infrastructure is a critical enabler for the global energy transition. By 2030, an additional 25 million kilometres of grid infrastructure needs to be built and modernised, with a total of 80 million kilometres by 2040. Doubling global investment into grids to over $600 billion per year by 2030 is necessary to meet climate targets and ensure a sustainable energy future. These investments are required for new transmission and distribution infrastructure, smart meters, communication and automation technologies, and regional grid development to enhance flexibility, reliability, and affordability.
Modern, smart, and expanded grids are essential for integrating renewable energy sources and ensuring their efficient distribution. The rapid growth in electricity demand, driven by electric vehicles, heat pumps, data centres, and other technologies, requires robust grid infrastructure. Without investment, grids can become bottlenecks, delaying renewable energy projects and increasing reliance on fossil fuels.
Upgraded grids improve system flexibility, reliability, and affordability, which are vital for accommodating the variable nature of renewable energy sources while maintaining energy security. Improved reliability reduces the frequency and duration of power outages, crucial for daily life and critical infrastructure.
During COP29, the Global Grids Pledge was announced, calling for a significant increase in investment in grid infrastructure. Key points include:
- Committing to a global grid deployment goal of adding or refurbishing 25 million kilometres of grids and the deployment of 1,500 GW of energy storage by 2030.
- Highlighting the need for investments in energy storage to support the build-out of renewables and grid infrastructure, improving system efficiency and flexibility.
- Encouraging national governments and other stakeholders to endorse the pledge and take action to accelerate ambition on grids and storage.
The Carbon Trust is committed to supporting the Global Grids Pledge by:
- Engaging with national governments, international institutions, financiers, and industry stakeholders to promote the importance of grid investment.
- Offering expertise and resources to help develop and implement grid modernisation projects.
- Working with commercial banks, pension funds, development banks, and export credit agencies to secure the necessary funding for grid investments.
Notes to editors
National governments, international institutions, financiers, and industry stakeholders can endorse this Pledge through:
Any official written communications (letter, note verbale, etc.) to the COP29 Presidency, or email storageandgrids@cop29.az.
About the Carbon Trust
The Carbon Trust highlights the critical role of modernised grids in the global energy transition, emphasising the need for coordinated efforts and substantial financial commitments to achieve Net Zero emissions by 2050. For more information, please read our memo produced for the 'Financing the future of global energy grids webinar' hosted by the Carbon Trust in November 2024.
About the GGI and the GRA
The Green Grids Initiative (GGI) and the Global Renewables Alliance (GRA) are key players in the global effort to modernise and expand grid infrastructure to support the transition to renewable energy. The GGI is a collaborative effort that brings together national governments, international institutions, financiers, and industry stakeholders to promote investment in grid infrastructure, set development targets, and coordinate efforts to achieve these goals. The GRA supports these initiatives by advocating for renewable energy integration and providing technical and financial expertise. Both organisations were instrumental in the development and promotion of the Grids and Storage COP Pledge introduced at COP29, which calls for significant investment in grid infrastructure and energy storage to meet climate targets and ensure a sustainable energy future.
