21.4 trillion dollars for global electrical infrastructure required by 2050

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Lerato Khumalo

According to the data compiled from the report of the International Audit and Analysis Company DNV’s “Energy Sector Analysis 2025 – from Disarred Structures to Integrated Systems” report, global energy systems move from a structure in which separate sectors move independently and move to a more integrated and mutual dependent structure.

The existing infrastructure and management models are insufficient to adapt to this transformation.

96 percent of the energy managers who participated in the DNV research within the scope of the report, the current electrical transmission infrastructure is insufficient to connect renewable production points and high demand zones. Only 19 percent of those operating in the renewable energy sector think that existing transmission planning is sufficient.

According to the report data, for the modernization of electrical transmission systems, the transmission infrastructure is required to invest up to 21.4 trillion dollars by 2050.

84 percent of the participants, the current infrastructure does not meet the needs, 86 percent of the permission processes are the biggest obstacle to the net zero targets, he says.

In the report, the lack of connection between natural gas production and electricity production infrastructures in Texas, USA in 2021, draws attention as an important example of energy crisis. In the incident where more than 200 people lost their lives, it is emphasized that the lack of coordination between sectors increased the disaster.

The report states that energy systems are interdependent and factors such as electricity, natural gas and consumer behavior should be considered as a whole.

According to DNV, it is critical to direct these investments to the right points, not only in energy in energy.

In the current approach, many countries approve large renewable projects without building transmission lines. This causes the energy produced due to network constraints to waste.

The report reveals that large consumers, especially industrial facilities, which actively participate in the energy system, have become both load and potential solution on the network.

As of this year, 35 percent of the energy intensive sectors directly made bilateral agreements with special energy producers in the report pointed out that 51 percent of the networks are insufficient to meet the renewable goals.

According to the DNV report, which defines the energy transition not only as a “systemic evolution”, not only technological investments, but also elements such as market structures, digital systems, consumer coordination and infrastructure permits will not be managed with the understanding of “holistic energy system”.