The Future of Energy 2025

ENERGY BUILDING GRIDS

The Need for a New Grid Paradigm A report from the International Energy Agency (IEA) spotlighted a critical infrastructural gap in the global transition to clean energy. To align with climate targets and safeguard energy security, the Agency suggests an estimated 80 million kilometres of new or refurbished power lines are required by 2040 — equivalent to the world’s current grid length. This expansion is crucial to accommodate increasing renewable energy penetration, the electrification of transportation and heating, and the need for reliable energy access. As nations intensify efforts to decarbonise, power grids have emerged as both a critical enabler and a potential bottleneck. Without sufficient capacity and resilience, grids could falter under the weight of clean energy demands, undermining climate ambitions. Modernising these systems involves more than just scale—it demands innovative approaches to technology integration, climate resilience, and international cooperation. Strengthening Resilience Against Extreme Weather Climate change poses an immediate and escalating threat to electricity grids worldwide. From hurricanes to heatwaves, extreme weather events are testing the limits of grid reliability, often leaving millions without power. A grid

designed for the 20th century cannot meet the demands of today’s volatile climate. To combat this, modernisation efforts must prioritise resilience. Enhancing grid infrastructure with advanced materials, underground cabling, and decentralised energy storage can mitigate the risk of outages. Moreover, predictive analytics powered by artificial intelligence (AI) can help anticipate disruptions and optimise recovery efforts. For instance, real-time monitoring systems are already enabling utilities to respond dynamically to grid stresses during extreme weather. Policymakers must act swiftly to mandate climate-resilient grid standards. Investment in these measures today will yield significant cost savings and ensure uninterrupted energy supplies for future generations. The Case for Multi-Country Corridors International energy cooperation is increasingly viewed as a cornerstone of sustainable energy systems. Multi-country energy corridors, which facilitate cross-border electricity flows, represent a strategic solution to balance supply and demand across regions. These corridors enable countries to pool renewable resources, stabilise grid operations, and reduce redundancy.

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THE FUTURE OF ENERGY

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