Global utilities plan to invest more than $116 billion annually in grids and renewables

The world’s leading utility companies on Thursday announced a joint intent to invest more than US $116 billion per year in clean power generation and power system grid infrastructure globally in the coming years.

Partners within the Utilities for Net Zero Alliance (UNEZA) launched at COP28, under the guidance of the International Renewable Energy Agency (IRENA) and the UN Climate Change High-level Champions, are stepping up efforts to accelerate the electrification agenda and power system transformation as the world moves towards the midway point in a crucial decade of decarbonisation.

The 39 partners of UNEZA, including 32 of the largest utilities and energy companies in the world serving more than 327 million customers globally and with ambitions to scale renewables portfolios by 2.6 times by 2030, will step up efforts to expand and modernise grid infrastructure. They said in a statement that 48% per cent of the total investment planned and committed in the coming years targets transmission and distribution infrastructure.

Expanding cleaner power system

The announcement was made during New York Climate Week at a high-level roundtable in partnership with the World Trade Organization, and forms part of ongoing efforts by the alliance to signal increased demand for the equipment and materials that are essential to expanding a cleaner power system. UNEZA members also published a high-level statement with recommendations to policymakers designed to alleviate supply chain constraints.

The high-level statement includes calls from industry for policymakers to harmonise standards of equipment across regions and jurisdictions creating a bigger market for common goods, promote free flow of supplies, establish forward-looking, integrated and long-term system planning including multi-project approvals and permitting, promote policy and regulatory business model innovation and maintain a healthy skills supply chain.

Dr Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO), said the supply of goods, materials and technologies that underpin the energy transition must transcend nationalist interests as governments look to step up decarbonisation efforts. Her message was delivered during opening remarks at a dedicated roundtable during Global Renewables Summit hosted by the Global Renewables Alliance in partnership with Bloomberg Philanthropies, the COP28 and COP29 Presidencies, IRENA, the European Commission and the governments of Barbados and Kenya.  

UNEZA initiative from COP28

H.E. Razan Al Mubarak, UN Climate Change High-Level Champion for COP28, said: “As we advance toward our net zero goals, UNEZA demonstrates the power of collaborative efforts to deliver on the 2030 Climate Solutions and the UAE Consensus to triple renewables and double efficiency by 2030. Today’s commitments reflect both the scale and the ambition of our collective endeavors. This partnership sets both a powerful and practical foundation for a sustainable future, guided by innovation and shared commitment from utilities, which are at the heart of energy transitions.”

In April at the 14th IRENA Assembly, UNEZA members adopted the UNEZA Roadmap to 2030, which targets a total increase of renewable energy capacity within their portfolios. The target is 849GW by 2030, an increase of 2.6 times relative to 2023. The joint renewables ambition was announced alongside a grid infrastructure action plan that will see utilities work to address the barriers to scaling investment in grids – including supply chain constraints.

Francesco La Camera, Director-General of IRENA and host the UNEZA Secretariat said: “Our top priority is to build and upgrade the grids needed to meet the global target of tripling renewable power capacity by 2030. IRENA estimates the world’s investment needs for infrastructure at USD 720 billion every year by 2030, the bulk will need to come from the private sector. Today’s commitment to invest in renewables and in power grids is a significant step towards closing the finance gap, showcasing the central role that utilities play in transforming our energy systems and realising net zero targets.”

Addressing transition bottlenecks

Co-chair and founder of UNEZA, Jasim Husain Thabet, Group Chief Executive Officer of TAQA, said: “This announcement shows that the utilities community is serious about the energy transition and serious about its commitment to addressing bottlenecks through cooperation and dialogue. If we are to collectively triple renewables capacity by 2030 in line with the COP28 outcome and achieve net zero by 2050, we need robust and resilient supply chains across the full power system value chain. Lead times for key power system equipment such as transformers, for instance, can take years – presenting a threat our ambition. The message to suppliers and policy makers is that we need partnership and farsighted strategies in this critical element of the transition.”

Alistair Phillips Davies, CEO of SSE and co-Chair of the Alliance said: “A significant increase in supply chain capacity is needed if we are to deliver the clean energy transition. Historically, however, in many regions disjointed, short-term policy making and a narrow focus on competition have made it challenging for supply chain companies to have the long-term certainty they need to invest in building capacity. The tide is beginning to turn on this, with innovative approaches emerging. But we need to do more. It is therefore important for utilities to provide what certainty we can about our investment plans, while helping to inform policymakers’ journey towards a more strategic, collaborative and anticipatory approach that ensures we scale up in time to meet future demands. We are therefore delighted to be collectively sharing these important contributions in New York today.”

Meeting global renewables commitment

Bruce Douglas, CEO of the Global Renewables Alliance: “A massive and rapid increase in investments for new and existing electricity grids are crucial to meet the global 3xRenewables commitment by 2030 and the Paris Agreement goals. This is not just a technical necessity; it is a defining moment for our collective future. To stay on track to the 1.5°C target, immediate action is essential, including committing to global grids targets and action on supply chains for grids, but also the wider renewables and clean energy sectors. These recommendations highlight the steps that must be taken by governments, finance institutions and the private sector to accelerate towards a clean, secure and just energy future.”

According to IRENA, annual investment in renewable capacity must more than double grid investment between now and 2030, reaching $1.5 trillion per year—compared to the $720 billion needed annually for grid infrastructure. This increase is vital to achieve the ambitious target of tripling renewable energy capacity by 2030, marking a crucial step toward a sustainable, net-zero future.