Proactively plan and build the power grid

The path to a net-zero power system hinges on collaboration between regulators, grid operators, and policymakers. Global grid investment in BNEF’s Net Zero Scenario more than doubles to about $800 billion by 2030, mostly to accelerate integration of new renewable energy supply. Proactive, long-term planning and deployment of grid investment is needed to upgrade networks, especially for system reinforcement and new connections over this decade. Grid plans can be designed to match the amount of renewables capacity targeted by policymakers. These plans can preselect corridors for new grid development, providing greater certainty for renewables site selection. Grid operators must work with policymakers to align on anticipatory spending (where network investment supports the connection of future power plants and future-proofing infrastructure), and robust needs-testing processes, especially as electrification of other end-use sectors such as transportation grows.

The development of inter-regional networks and coordinated planning between power markets can also be beneficial, both in island nations like the UK, Indonesia and Japan, and in regions with vast land masses like the US and China. Interconnected systems are more resilient to extreme events and supply energy more affordably to end-users.