The 39 partners of UNEZA, including 32 of the largest utilities and energy companies in the world serving more than 327 million customers globally and with ambitions to scale renewables portfolios by 2.6 times by 2030, will step up efforts to expand and modernize grid infrastructure. 48% per cent of the total investment planned and committed in the coming years targets transmission and distribution infrastructure.
The announcement was made during New York Climate Week.. Alongside investment commitments, UNEZA members published a high-level statement with recommendations to policymakers designed to alleviate supply chain constraints.
The high-level statement includes calls from industry for policymakers to harmonize standards of equipment across regions and jurisdictions creating a bigger market for common goods, promote free flow of supplies, establish forward-looking, integrated and long-term system planning including multi-project approvals and permitting, promote policy and regulatory business model innovation and maintain a healthy skills supply chain.
Dr. Ngozi Okonjo-Iweala, Director-General of the World Trade Organization said the supply of goods, materials and technologies that underpin the energy transition must transcend nationalist interests as governments look to step up decarbonization efforts.
H.E. Razan Al Mubarak, UN Climate Change High-Level Champion for COP28, said, “As we advance toward our net zero goals, UNEZA demonstrates the power of collaborative efforts to deliver on the 2030 Climate Solutions and the UAE Consensus to triple renewables and double efficiency by 2030. Today’s commitments reflect both the scale and the ambition of our collective endeavors. This partnership sets both a powerful and practical foundation for a sustainable future, guided by innovation and shared commitment from utilities, which are at the heart of energy transitions".
In April at the 14th IRENA Assembly, UNEZA members adopted the UNEZA Roadmap to 2030, which targets a total increase of renewable energy capacity within their portfolios. The target is 849GW by 2030, an increase of 2.6 times relative to 2023. The joint renewables ambition was announced alongside a grid infrastructure action plan that will see utilities work to address the barriers to scaling investment in grids – including supply chain constraints.
Francesco La Camera, Director-General of IRENA and host the UNEZA Secretariat said, "Our top priority is to build and upgrade the grids needed to meet the global target of tripling renewable power capacity by 2030.
Bruce Douglas, CEO of the Global Renewables Alliance, added, "A massive and rapid increase in investments for new and existing electricity grids are crucial to meet the global 3xRenewables commitment by 2030 and the Paris Agreement goals. This is not just a technical necessity; it is a defining moment for our collective future. To stay on track to the 1.5°C target, immediate action is essential, including committing to global grids targets and action on supply chains for grids, but also the wider renewables and clean energy sectors. These recommendations highlight the steps that must be taken by governments, finance institutions and the private sector to accelerate towards a clean, secure and just energy future."
Welcoming the announcements Marcus Stewart, Head of Secretariat Green Grids Initiative said, “There is no transition without transmission, and there is no transmission without the supply chain. This requires a rapid expansion of the supply chain to build the infrastructure we desperately need, but the supply chain needs clear commitments from policy makers to do that. Today’s high-level statement is an important first step to unlock these commitments, and the start of an ongoing dialogue bringing industry and policy makers together to step up and scale up.”
According to IRENA (2024), annual investment in renewable capacity must more than double grid investment between now and 2030, reaching $1550 billion per year—compared to the $720 billion needed annually for grid infrastructure. This increase is vital to achieve the ambitious target of tripling renewable energy capacity by 2030, marking a crucial step toward a sustainable, net-zero future.
