IEA Releases Report on Modernising Electricity Grids in the Age of Electrification
As global electrification accelerates, delays in grid expansion and modernisation have become a major constraint on connecting new generation capacity, energy storage systems and electricity consumers. The report emphasises that grid expansion and more efficient utilisation of existing infrastructure must advance in parallel to increase system capacity, maintain security and reliability, and reduce the overall cost of the electricity transition.
According to the IEA, global grid capacity will need to increase by at least 30% by 2035 to accommodate rising electricity demand, with emerging markets and developing economies accounting for approximately three-quarters of the additional capacity requirements. However, lengthy permitting procedures, supply chain bottlenecks, shortages of skilled workers and rising equipment costs continue to delay grid development.
In 2025, at least 1,700 GW of renewable energy projects at advanced stages of development and 600 GW of utility-scale battery storage projects were awaiting grid connection worldwide. Grid congestion also imposes substantial economic costs. In 2024, congestion-related costs reached approximately USD 12 billion in the United States and EUR 4.3 billion in the European Union.
The report estimates that wider deployment of three grid-enhancing technologies—dynamic line rating (DLR), network topology optimisation and advanced power flow control—could unlock up to 330 GW of additional connection capacity for electricity generation, storage and demand without requiring new grid expansion.
Source：
[1] https://www.iea.org/reports/modernising-grids-in-the-age-of-electricity
[2] https://mp.weixin.qq.com/s/9CuBsBO8nYD6HfVfcsVshg