This is in line pursuit of net zero targets across the globe.

At least $21.4t worth of investments in electricity grids are needed to achieve global net zero, BloombergNEF reported.

This includes an estimated $4.1t to sustain existing grids and $17.3t more for their expansion. In line with this, annual investment will need to triple from $274b in 2022 to $871b per year in 2050.

“We must effectively double the size of the global electricity grid by 2050,” Sanjeet Sanghera, Head of Grids & Utilities at BloombergNEF and lead author of the report said.

“This future grid needs to be smart, flexible, and responsive, enabling us to harness the full potential of renewable energy rather than be bogged down by it.”

This will also require intervention in policies, such as streamlining the permitting processes, consolidating review processes, and establishing clear time frames for approval.

Incentives may also be needed to pursue digitalisation and grid flexibility.