BAKU, Azerbaijan, June 5. Global investment in electricity grids is on track to surpass $400 billion in 2025, marking an all-time high, according to the International Energy Agency’s latest World Energy Investment report, Trend reports.
This milestone follows a 9% increase in grid spending in 2024, when global investment reached $390 billion - 20% higher than a decade ago.
However, the IEA warns that grid development is not keeping pace with the rapid expansion of renewable energy. While solar and wind deployment has accelerated, grid spending per dollar of new generation capacity has declined - from $0.60 in 2016 to less than $0.40 today. As a result, some 1,650 GW of solar and wind projects - six times Germany’s total capacity - are waiting for grid connection globally.
China continues to dominate global grid investment, accounting for one-fifth of total spending and reporting a 10% year-on-year increase. In Latin America, investment dipped in 2024 following an exceptional spike in Brazil the year before, though Chile announced plans for its longest-ever transmission line, aimed at boosting renewable integration by 2029.
Emerging economies are increasingly adopting long-term planning to address grid bottlenecks. India, for example, approved a $110 billion grid investment plan through 2032.
Meanwhile, digitalisation and artificial intelligence are becoming central to improving grid performance. Regulatory frameworks are evolving to support this shift, with more jurisdictions adopting performance-based incentives to enhance grid reliability, efficiency, and data-driven management.
The IEA stresses that timely investment and regulatory reform are essential to prevent renewable deployment from stalling - and to ensure electricity grids can meet the needs of the clean energy transition.
