Electrical Grids and Storage

Powering the Transition to a Low-Carbon Future

The decarbonisation of the global energy system hinges on two critical components: 

1. Decarbonising power generation. 
2. Ensuring the efficient transmission and distribution of green electricity to high-emission sectors like transport and industry. 

This transformation requires substantial investment in new grid and storage infrastructure to meet the growing demand for renewable electricity. 

These Criteria:

• Include both Mitigation and Adaptation & Resilience Requirements. 
• Align with the Paris Agreement’s goal of limiting global temperature rise to 1.5°C. 
• Mobilise capital for grid modernisation and storage solutions. 

Why Grid and Storage Infrastructure matter

Upgrading and expanding electricity grids and storage systems is vital to: 

• Achieve global decarbonisation goals. 
• Deliver clean electricity to electrified sectors like industry, transport, and buildings. 
• Adapt to the impacts of climate change while ensuring a stable electricity supply. 

Grid infrastructure plays a pivotal role in enabling the widespread use of renewable electricity across industries, enhancing both flexibility and resilience.

Investment Needs 

To achieve the goals of the Paris Agreement, investments in electricity networks must rise from 16% to 19% of total energy investment between 2025 and 2030. 

However, global investment in grid infrastructure has been declining: 

• From US$306 billion in 2016 to US$248 billion in 2020. 

Driving Action Through Criteria 

By providing clear guidelines, the Electrical Grids and Storage Criteria aim to: 

• Catalyse investment in essential infrastructure.
• Support government efforts to regulate and decarbonise the energy sector.
• Ensure the transition to a climate-resilient energy system.