Asia to lead grid expansion investments

China will account for 30% of the total investments this year.

Asia is expected to be at the forefront of grid expansion investments, with China accounting for around 30% of the predicted global grid investments which will reach $374b in 2024.

According to Rystad Energy, the world would need $3.1t investments in grid infrastructure by 2030 to support the energy transition and limit global warming to 1.8 degrees Celcius.

“Power grids will be both an enabler and an obstacle to the energy transition. Mature grids have enabled the rapid expansion in solar and wind capacity seen in recent years, but many national grids are now near or at the point where further connections cannot be made without upgrading or expanding them,” said Edvard Christoffersen, senior analyst, Rystad Energy.

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“Annual investment levels must increase if the current trend of renewable energy buildout is to continue,” he added.

The grid requirements for 2030 will deploy an additional 18 million kilometres of grid network to keep pace with the renewables growth, bringing the total power grid length to 104 million kilometres, and reach 140 million kilometres by 2050. The region will contribute to over half of the new installations within the decade, with China and India as the leading markets.