Renewable energy sector faces grid infrastructure bottleneck

While global investment in renewable energy continues to surge, a critical bottleneck is hindering progress: insufficient power grid capacity. According to estimates, solar and wind facilities capable of producing electricity equivalent to 480 nuclear reactors remain disconnected from transmission networks in both the U.S. and Europe.

This issue is not isolated to the West. South Korea's government recently denied U.S. asset manager BlackRock's proposal to build an offshore wind farm in Asia, citing a lack of available grid capacity, as reported by local media. The challenge of connecting new renewable projects to the grid is becoming a significant roadblock.

Data from the International Energy Agency (IEA) reveals that the world added approximately 560 gigawatts of renewable power capacity in 2023, marking a 64 per cent rise from the previous year. This rapid growth is a testament to the potential of clean energy. However, many of these projects are situated in regions without existing power plants or thermal infrastructure, leading to a mismatch between renewable capacity growth and grid expansion.