As the green lobby is mounting pressure at COP30 on global leaders for transitioning from fossil fuel to renewable energy, governments and financial institutions have come together to find ways for bigger funding in the sector.
An effort led by Green Grids Initiative in collaboration with Utilities for Net Zero Alliance (UNEZA) highlights the importance of grids and storage facilities, essential infrastructure required urgently for transmission of clean energy – and the financial investment that is required for it. A report by Green Grids Initiative, ‘Climate Finance Principles for Grids’, was endorsed at COP30 by Germany and the UK governments, several multilateral development banks (MDBs) and other organisations.
Investment level raised
During a high-level ministerial meeting on Friday at COP30 in Belém, UNEZA revealed a substantial increase that is required in the energy transition investments. The organisation expanded its annual investment target for renewable energy transmission and storage systems from USD 117 billion to USD 148 billion, a more than 25% raise.
“A significant portion of this investment will focus on enhancing power grids and networks, with leading global utilities expected to invest about USD 1.24 in grid and storage for every dollar directed towards renewable generation. The Alliance is committed to constructing 10,000 kilometres of new and upgraded grid infrastructure, along with battery storage, and aims to more than triple its collective renewable energy capacity by 2030 compared to 2023,” reads the report, a copy of which is with The Plurals.
This ambitious plan includes an annual investment of USD 66 billion in renewables and USD 82 billion in grid and storage.
The meeting also saw support from various governments and MDBs for the grid financing principles.
Grids are the key
In a letter to heads of MDBs earlier this week, COP30 CEO Ana Toni had said that “delivering on global goals for tripling renewable energy and doubling energy efficiency by 2030 will only be possible if grids keep pace.” She had added: “Through the Principles and the UNEZA partnership, we (COP30) are turning global commitments into practical delivery, linking finance, policy, and implementation to build the resilient power systems that will enable a clean-energy future.” The UNEZA was established under the COP28 Presidency at UAE to address bottlenecks in power system transformation.
Experts reminded that according to International Renewable Energy (IRENA), around USD 670 billion is required every year to build and strengthen electricity grids by 2030 to meet system transformation needs.
Jasim Husain Thabet, co-chair of UNEZA, said: “This announcement reflects the fact that we deliver against our promises and underscores the magnitude of our intent. Utilities worldwide are mobilising with investments that are tangible, substantial and aligned with the need for a more resilient and sustainable energy system. We are standing up to deliver the most significant infrastructure upgrade of our lifetime – a power system fit for the 21st century, and fulfilling the pledges made at COP28 and COP29.”
An activist from India specialising in solar energy, however, hit a critical note: “We need to walk the talk. While a lot of discussion is taking place, the real factor, money, is much less on ground.”