Utilities for Net Zero Alliance members signal deepening commitment to power system transformation towards 2030 targets, at New York Climate Week

Partners publish supply chain recommendations to policy makers as demand for key equipment and materials intensifies  

New York, USA – September 24, 2024: The world’s leading utility companies have today announced a joint intent to invest more than US$116 billion per year in clean power generation and power system grid infrastructure globally in the coming years. Partners within the Utilities for Net Zero Alliance (UNEZA) launched at COP28, under the guidance of the International Renewable Energy Agency (IRENA) and the UN Climate Change High-level Champions, are stepping up efforts to accelerate the electrification agenda and power system transformation as the world moves towards the midway point in a crucial decade of decarbonization.

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, will step up efforts to expand and modernize grid infrastructure. 48% per cent of the total investment planned and committed in the coming years targets transmission and distribution infrastructure.

The announcement was made during New York Climate Week at a high-level roundtable in partnership with the World Trade Organization. It forms part of ongoing efforts by the Alliance and its members to signal increased demand for the equipment and materials that are essential to an expanding a cleaner power system, ultimately helping to underpin investments by supply chain companies in the additional manufacturing capacity that will be needed. Alongside investment commitments, UNEZA members published a high-level statement with recommendations to policymakers designed to alleviate supply chain constraints.

The high-level statement includes calls from industry for policymakers to harmonise 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.

Dr Ngozi Okonjo-Iweala, Director-General of the World Trade Organization (WTO) said the supply of goods, materials and technologies that underpin the energy transition must transcend nationalist interests as governments look to step up decarbonization efforts. Her message was delivered during opening remarks at a dedicated roundtable today during Global Renewables Summit hosted by the Global Renewables Alliance in partnership with Bloomberg Philanthropies, the COP28 and COP29 Presidencies, IRENA, the European Commission and the governments of Barbados and Kenya.  

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

In April at the 14th IRENA Assembly, UNEZA members adopted the UNEZA Roadmap to 2030, which targets a total increase of renewable energy capacity within their portfolios. The target is 849GW by 2030, an increase of 2.6 times relative to 2023. The joint renewables ambition was announced alongside a grid infrastructure action plan that will see utilities work to address the barriers to scaling investment in grids – including supply chain constraints.

“Accelerating the green energy transition requires significant investment in robust and efficient grid systems,” said Mr Sagar Adani, Executive Director, Adani Green Energy Ltd. “To achieve this, we must address challenges such as access to finance and high capital costs, particularly in emerging markets that are home to over half the world’s population. Policies that harmonize Right of Way and environmental clearances will also play a crucial role.”

According to IRENA (2024), annual investment in renewable capacity must more than double grid investment between now and 2030, reaching USD 1550 billion per year—compared to the USD 720 billion needed annually for grid infrastructure. This increase is vital to achieve the ambitious target of tripling renewable energy capacity by 2030, marking a crucial step toward a sustainable, net-zero future.