View source for Financing Electricity Grids for the Energy Transition

== Introduction ==
Electricity grids are a critical part of the energy infrastructure in the transition to a carbon neutral world. To meet the growing demand for electricity from different sectors and to accommodate an increasing share of renewable energy, electricity grids need to be expanded and modernised. This will require massive investment over the coming years.

== Investments in Electricity Grids ==
Current investment levels are around USD 300 billion per year, with a general upward trend (+8% in 2022). According to the IEA, global investment will need to almost double by 2030 to achieve net-zero emissions by 2050.<ref>IEA, [https://www.iea.org/energy-system/electricity/smart-grids smart grids], retrieved November 2024</ref> 

The European Commission estimates that €584 billion will be needed to meet the EU's 42.5% renewables target by 2030.<ref>European Investment Bank, [https://www.eib.org/en/press/news/investing-in-grids-to-power-the-energy-transition Investing in grids to power the energy transition], retrieved November 2024</ref>


[[File:Investment-spending-on-electricity-grids-2015-2022.png|550x550px]]

==Financing Mechanisms for Electricity Grids==
Investments in electricity grids need funding from both public and private sectors. 

===International Finance===

===Public Funding===

===The Role of Financial Institutions===

===De-risking Investments===

===End-User Tariffs===


==Further Information==

*[[Portal:Financing and Funding|Financing and Funding Portal]] on energypedia
*[[Portal:Grid|Electricity Grids Portal]] on energypedia
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==References==
[[Category:Grid]]
[[Category:Electricity]]
[[Category:Energy Transition]]
[[Category:Financing and Funding]]

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