Utility alliance to invest over $116b annually in grids and renewables

Nearly half will be allocated to transmission and distribution.

The Utilities for Net Zero Alliance (UNEZA) has committed to inject more than $116b per year in the development of renewable energy and grid infrastructure globally.

In a statement, the International Renewable Energy Agency (IRENA) said 48% of the planned investment targets transmission and distribution infrastructure.

UNEZA has 39 partners, 32 of which are some of the largest utilities and energy companies, serving more than 327 million customers globally and with goals to scale renewables portfolios by 2.6 times by 2030.

Citing IRENA estimates, Director-General Francesco La Camera said the world needs $720b every year by 2030 for infrastructure, the bulk of which will need to come from the private sector. 

UNEZA’s commitment to invest in renewables and 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,” he added.

The alliance also issued recommendations for policymakers to address supply chain constraints. This includes the call to harmonise standards of equipment, 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.

“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,” said Jasim Husain Thabet, co-chair and founder of UNEZA, and group CEO of TAQA.

IRENA has said that annual investment in renewable capacity must more than double grid investment between 2024 and 2030, reaching $1.55t per year – compared to the $720b needed annually for grid infrastructure. This increase is vital to triple renewable energy capacity by 2030.