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Utilities for Net Zero Alliance (UNEZA) members step up massive investment commitments in support for global ambitions to increase storage capacity six-fold by 2030 and add or refurbish 80 million kilometers of grids by 2040
Baku, Azerbaijan, 15 November 2024 – Today, leading utilities and power sector organizations reaffirmed their commitments made at COP29, aiming to dramatically enhance global power system storage by six times by 2030 while overhauling or expanding 80 million kilometers of grid infrastructure by 2040. This ambitious initiative, announced in Baku, received endorsement from various governments, civil society groups, and industry representatives, including the Utilities for Net Zero Alliance (UNEZA), to facilitate a significant increase in renewable energy capacity and the transition towards a net zero energy framework.
The UNEZA, which has grown to include 45 utilities and power sector suppliers—co-chaired by TAQA and SSE—was established at COP28 under the guidance of the International Renewable Energy Agency (IRENA) and the UN Climate Change High-Level Champions. The alliance is committed to an annual investment exceeding USD$117 billion in grids and renewable solutions. Notably, approximately 48% of this investment is earmarked for grid enhancements, which are essential to achieving the ambitious target of refurbishing or extending 80 million kilometers of grids by 2040.
This year, UNEZA has nearly doubled its membership from 25 to 45 partners, reflecting a heightened global resolve to foster the transition to net zero. The expansion highlights the collaborative efforts of these organizations spread across five continents, striving to implement impactful investments in both grid infrastructure and renewable energy.
Dr. Afif Al Yafei, CEO of TAQA Transmission and UNEZA co-Chair, acknowledged the ambitious goals set forth at COP29 and expressed a clear commitment to supporting these objectives. “This will represent one of the most substantial infrastructure initiatives of our time. To be successful, we will need to streamline the permitting process for grid infrastructure, develop regulatory frameworks that promote long-term investment, and enhance supply chains through cooperation,” he stated.
Echoing this sentiment, Mr. Martin Pibworth, Chief Commercial Officer at SSE plc and co-Chair of UNEZA, emphasized the interdependence between renewables and infrastructure development. He remarked, “For the world to achieve its target of tripling renewable deployment by 2030, a corresponding effort must be made in building the necessary grid infrastructure and integrating flexible energy sources, such as electricity storage and green hydrogen.” He expressed enthusiasm about UNEZA’s support for the COP29 Global Storage and Grids Pledge, which has yet to receive adequate attention.
IRENA Director-General Francesco La Camera pointed out that the political commitments made regarding green energy corridors, storage, and grid improvements mark a significant advancement in the energy transition. “To reach the ambitious goal of tripling renewable energy capacity by 2030, we must overhaul existing infrastructures and ensure our power systems are interconnected and resilient,” he said. UNEZA, with the backing of global utilities, is well-placed to lead this transformative effort.
Razan Khalifa Al Mubarak, the UN Climate Change High-Level Champion for COP28, highlighted the infrastructural investment’s vital importance in achieving net zero targets. “The commitment within UNEZA underscores our shared focus on resilience and resource alignment. By collaborating effectively, we can realize a sustainable, greener future,” she noted.
Mr. Thomas Birr, Chief Strategy & Innovation Officer at E.ON SE, reiterated the company’s commitment to expanding energy networks and asserted the importance of modernizing existing infrastructure. E.ON aims to invest over 40 billion Euros by 2028, primarily directed towards grid expansion and digital enhancements.
Andreas Schierenbeck, CEO of Hitachi Energy and a founding UNEZA member, addressed the urgency of aligning global efforts to meet net zero goals. He pledged support for the COP29 Global Energy Storage and Grids Pledge and emphasized the necessity of modernizing power grids and deploying energy storage solutions as critical components of the energy system.
During the COP29 conference, UNEZA welcomed Brazilian utility CEMIG into its fold, marking its expansion as Brazil gears up to host COP30 in 2025. UNEZA’s combined member base serves over 340 million consumers globally and boasts a market capitalization approaching USD 1 trillion. The alliance’s yearly investment commitments are substantial, outpacing the GDP of more than 60 nations.
“CEMIG is proud to join UNEZA, championing the transition to a net zero power sector and upholding our status as a 100% renewable energy provider. Our substantial investment plan focuses on grid and energy storage development—key elements backed by UNEZA,” stated CEO Reynaldo Passanezi Filho, emphasizing the need for utilities to lead the decarbonization effort through innovative private investments.
In light of these significant investment commitments, UNEZA has also issued a high-level statement highlighting supply chain resilience, urging policymakers to address supply chain challenges that could impede progress.
According to IRENA (2024), aligning with a pathway compatible with a 1.5°C temperature rise requires not only tripling renewable energy capacity but also doubling energy efficiency efforts by 2030. This target entails reaching a renewable power capacity of 11.2 TW, with consistent annual additions of 1,044 GW from 2024 through 2030. To fulfill the UAE Consensus goals, a total investment of USD 31.5 trillion in renewables, infrastructure, flexibility, efficiency, and conservation will be necessary by 2030.
Investment in grid infrastructure and flexibility must nearly double from current levels, necessitating an average annual injection of USD 717 billion for grids and flexibility between 2024 and 2030. The targets for Global Energy Storage and Grids require a six-fold increase in energy storage capacity compared to 2022, aspiring to achieve 1,500 GW by 2030.
UNEZA encourages industry players to adopt this collective vision for accelerating the energy transition. Membership is open to utilities, developers, technology firms, and knowledge partners eager to advance toward a net zero future by 2050.
¹ World Bank (2024): World Development Indicators. Available at: https://datacatalog.worldbank.org/search/dataset/003771
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