New York Climate Week: SSE joins global companies calling for net zero grid reforms

At New York Climate Week, the world's leading utility companies have come together to encourage policy makers to make it easier to build the electricity grids needed to deliver net zero.

A $116 Billion Clean Energy Commitment

Members of the Utilities for Net Zero Alliance (UNEZA) have committed to spending more than $116 billion a year on clean power generation and grid infrastructure but they say reforms are needed. 

Why this matters:

• The alliance serves over 327 million customers globally
• Electricity grids transport energy from where it is generated to homes and businesses
• 48% of the planned investment is earmarked for transmission and distribution infrastructure
• UNEZA members want to ensure supply chain bottlenecks don’t put the brakes on progress as investment in grids accelerates

Addressing Supply Chain Challenges

As demand for clean energy equipment and materials grows, supply chain constraints have emerged as a potential obstacle. To address these challenges, UNEZA members have recommended that, among other things, policymakers:

1. Harmonise equipment standards across regions
2. Promote free flow of supplies
3. Establish long-term, integrated system planning including multi-project approvals and permitting
4. Encourage policy and regulatory innovation
5. Maintain a healthy skills supply chain

The Critical Need for Grid Investment

According to the International Renewable Energy Agency (IRENA), annual investment in renewable capacity must more than double to $1,550 billion per year by 2030. 

Additionally, $720 billion is needed annually for grid infrastructure. This investment is essential for achieving the ambitious target of tripling renewable energy capacity by 2030.

_{Pictured: A subsea cable laying vessel laying HVDC cable into the water off the coast of the Isle of Skye}

Alistair Phillips-Davies, CEO of SSE and co-Chair of the Alliance said: 

”A significant increase in supply chain capacity is needed if we are to deliver the clean energy transition.  

“Historically, however, in many regions disjointed, short-term policy making 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.  

“The tide is beginning to turn on this, with innovative approaches emerging.  

“But we need to do more. It is therefore important for utilities to provide what certainty we can about our investment plans, while helping to inform policymakers’ journey towards a more strategic, collaborative and anticipatory approach that ensures we scale up in time to meet future demands.  

“We are therefore delighted to be collectively sharing these important contributions in New York.” 

Francesco La Camera, Director-General of IRENA and host the UNEZA Secretariat added:

"Our top priority is to build and upgrade the grids needed to meet the global target of tripling renewable power capacity by 2030.  

“IRENA estimates the world’s investment needs for infrastructure at USD 720 billion every year by 2030, the bulk will need to come from the private sector.  

“Today’s 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 realising net zero targets.”

Co-chair and founder of UNEZA, Jasim Husain Thabet, Group Chief Executive Officer of TAQA said: 

“This announcement shows that the utilities community is serious about the energy transition and serious about its 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.  

“Lead times for key power system equipment such as transformers, for instance, can take years – presenting a threat our ambition.  

“The message to suppliers and policy makers is that we need partnership and farsighted strategies in this critical element of the transition.”