At least $14trn will need to be invested in the world’s grids by 2050 to support ever larger amounts of variable renewable energy, as well as increased electricity demand from the heating and transport sectors, according to BloombergNEF (BNEF).
This means that by mid-century, annual global investment in both distribution and transmission grids would need to reach $636bn a year, a 170% increase on the $235bn spent in 2020, says the BNEF report, Power Grid Long-Term Outlook 2021.
