UNEZA partners plan to ramp up investments in grid, renewables to meet net-zero goals

Members of the Utilities for Net Zero Alliance (UNEZA) deepened their commitment to power system transformation toward 2030 targets during last week’s New York Climate Week, and published supply chain recommendations for policymakers that could help meet rising demands for key equipment and materials.

“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,” said H.E. Razan Al Mubarak, UN Climate Change High-Level Champion for COP28.

“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,” Al Mubarak said Friday.

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 — said they will increase efforts to expand and modernize grid infrastructure.

UNEZA also said that 48 percent of the total investment planned and committed in the coming years targets transmission and distribution infrastructure.

The utility companies also announced they jointly plan to invest more than $116 billion (USD) per year in clean power generation and power system grid infrastructure globally in the coming years as they ramp up efforts to accelerate the electrification agenda and power system transformation.

Alongside investment commitments, UNEZA members published a high-level statement with recommendations to policymakers designed to alleviate supply chain constraints.

The 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.

“Our top priority is to build and upgrade the grids needed to meet the global target of tripling renewable power capacity by 2030,” said Francesco La Camera, director-general of IRENA and host of the UNEZA Secretariat. “IRENA estimates the world’s investment needs for infrastructure at $720 billion (USD) every year by 2030, the bulk will need to come from the private sector.”

La Camera added that the partners’ commitment to invest in renewables and in power grids “is a significant step towards closing the finance gap, showcasing the central role that utilities play in transforming our energy systems and realizing net-zero targets.”

Co-chair and founder of UNEZA, Jasim Husain Thabet, Group Chief Executive Officer of TAQA, agreed, noting that their announcement shows that the utilities are serious about the energy transition and about their commitment to addressing bottlenecks through cooperation and dialogue.

“If we are to collectively triple renewables capacity by 2030 in line with the COP28 outcome and achieve net zero by 2050, we need robust and resilient supply chains across the full power system value chain,” Thabet said. “Lead times for key power system equipment, such as transformers, for instance, can take years — presenting a threat to our ambition. The message to suppliers and policymakers is that we need partnership and farsighted strategies in this critical element of the transition.”

A significant increase in supply chain capacity is also needed to deliver the clean energy transition, according to Alistair Phillips Davies, CEO of SSE and co-chair of the alliance.

“Historically, however, in many regions, disjointed, short-term policymaking and a narrow focus on competition have made it challenging for supply chain companies to have the long-term certainty they need to invest in building capacity,” Davies said. “The tide is beginning to turn on this, with innovative approaches emerging. But we need to do more.”

It’s important for utilities to provide what certainty they can about their investment plans, while helping to inform policymakers’ journey toward a more strategic, collaborative and anticipatory approach that ensures they can scale up in time to meet future demands, he added.

Andreas Schierenbeck, CEO of Hitachi Energy, said power grids are becoming increasingly significant both from a capacity and complexity perspective.

“This has been an overlooked sector in the past few decades and many countries are experiencing grid bottlenecks as seen from connection queues, curtailment and other indicators,” said Schierenbeck. “To alleviate pressure on grid technology supply chains, including HVDC, transformers and switchgear, we need more long-term planning, innovative business models and the right incentives.”

Above all, he added, “we must continue to leverage global supply chains to meet growing demand and deliver on our net-zero targets.”

Bruce Douglas, CEO of the Global Renewables Alliance, also said that a massive and rapid increase in investments for new and existing electricity grids are crucial to meet the global 3xRenewables commitment by 2030, as well as the Paris Agreement goals.

“This is not just a technical necessity; it is a defining moment for our collective future,” said Douglas. “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.”

According to IRENA (2024), annual investment in renewable capacity must more than double grid investment between now and 2030.

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