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IEA Releases the Report on Transmission Grid

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Mar 01, 2025

International Energy Agency (IEA) Report: "Building the Future Transmission Grid" published in February 2025, the International Energy Agency (IEA) released its latest report on power transmission infrastructure, highlighting investment trends, supply chain challenges, and the need for accelerated grid expansion to support global clean energy goals.

Five Key Insights:
  1. Investment in Transmission Infrastructure is Growing but Insufficient
    • Global investment in power transmission grew 10% in 2023, reaching $140 billion.
    • Advanced economies and China accounted for 80% of the total spending, exposing regional disparities.
    • To meet energy transition goals, annual investment must exceed $200 billion by the mid-2030s and reach $250-300 billion in net-zero scenarios.
  2. Electricity Demand is Surging, Necessitating Grid Expansion
    • Global electricity consumption is expected to grow at nearly 4% annually through 2027.
    • Despite adding 1.5 million km of new transmission lines in the last decade, grid constraints remain a major barrier.
    • A staggering 1,650 GW of solar and wind projects are awaiting grid connections, delaying clean energy integration.
  3. Supply Chain Bottlenecks are Increasing Costs & Delays
    • Prices for cables have doubled since 2019, while power transformer costs have risen by 75%.
    • Lead times for large transformers have nearly doubled, now extending up to four years.
    • The transformer manufacturing sector faces a 1.5 million worker shortfall by 2030, worsening delays.
  4. High-Voltage Transmission is Critical for Clean Energy Expansion
    • China has added 500,000 km of transmission lines in the past decade, including several ultra-high-voltage (UHV) projects.
    • High-voltage direct current (HVDC) lines have tripled since 2010, surpassing 100,000 km globally.
    • The EU plans to invest $420 billion in offshore transmission, adding 54,000 km of new lines by 2050.
  5. Strengthening the Transmission Supply Chain is Essential
    • Countries are adopting long-term procurement mechanisms to stabilize supply chains.
    • TenneT signed a $5.7 billion HVDC cable procurement deal, covering 7,000 km of projects.
    • Governments and industries must collaborate to streamline permitting, upskill the workforce, and boost manufacturing capacity.
India’s Transmission Sector Transformation

India is making major investments to support its ambitious clean energy goals:

  • Transmission network expanded by 70% in the last decade, adding 180,000 km of lines.
  • The National Electricity Plan (2024) outlines upgrades to integrate 600 GW of renewables by 2032.
  • Major HVDC projects underway, including:
    • 765 kV Khavada-Bhuj line (3 GW capacity).
    • 800 kV Gujarat-Maharashtra HVDC link (8 GW renewable corridor).

The report underscores the urgent need for transmission grid expansion to unlock renewable energy potential and achieve net-zero targets worldwide.