Construction & Real Estate

Global utilities unite to tackle grid supply chain challenges

LONDON
Global utilities unite to tackle grid supply chain challenges

Global utilities and leading power sector equipment manufacturers have come together to lay out a series of steps to help ensure the global grid supply chains can keep pace with soaring demand. 

In a joint statement, industry leaders said they will work towards harmonising fragmented equipment standards while also offering greater demand visibility. 

The statement came during London Climate Action Week (June 20-28), where there is renewed emphasis on the need to accelerate electrification of global economies.

Utilities for Net Zero Alliance (UNEZA) members, representing some of the world's largest utilities, will need close to 90,000 km of transmission cable by 2030, enough to circle the Earth more than twice, and more than 270 high-voltage transformers over the same period. Both figures dwarf current manufacturing capacity. Transformer waiting times alone can now exceed three years.

The age of electricity, and transition to clean power is pushing transmission infrastructure growth at unprecedented speed, creating challenges for supply chains. 

Addressing manufacturing bottlenecks and raw material constraints will be critical to the pace and cost of grid expansion and is a key focus area for UNEZA, a leading global industry body co-led by UK utility SSE and Abu Dhabi-based TAQA, working in partnership with the Global Clean Power Alliance, founded and led by the UK Government.

UNEZA operates under the guidance of the International Renewable Energy Agency (IRENA) and the UN Climate Change High-Level Champions, ensuring a focused and strategic approach to achieving a sustainable energy future.

UK Climate Minister Katie White said: “This call from the Utilities for Net Zero Alliance shows that, by working with industry, governments can stop tying themselves in knots and start delivering the infrastructure needed to meet global demand – enough cable to wrap around the Earth more than twice.

“Through partnerships like the Global Clean Power Alliance, Britain is tackling long-standing barriers to clean energy. That will help us deliver the clean power mission, lower bills for good, and support other countries to reduce emissions and accelerate their own transition.”

Khalifa Al Mheiri - Chief Strategy & Investment Officer, TAQA Transmission, said: "As a utility investing in the next generation of electricity networks, TAQA recognises that delivering the energy transition at the pace the world requires depends not only on investment, but on our ability to strengthen and modernise global supply chains. Through UNEZA, utilities are taking practical action to improve coordination, harmonise technical approaches and explore pooled procurement models that provide greater certainty for suppliers while helping utilities deliver critical infrastructure faster, more efficiently and at lower cost. Collaboration across the value chain will be fundamental to building resilient electricity systems that support long-term energy security and net-zero ambitions.”

Glenn Barber, Director of Corporate Affairs at SSE, said: “We know from our experience in the UK that long-term visibility of demand is vital. It gives supply chain partners the certainty they need to invest in the manufacturing capacity and technical innovation needed to meet the demands of a monumental global energy transition.  By bringing global utilities and supply chain partners together, UNEZA is not only helping to provide that visibility but tackling the practical barriers to supply chain development. The focus at London Climate Week on electrification of demand is welcome and necessary; at the same time, electrification will only be possible if grids can keep pace and the steps outlined today can plan an important role in that.”

Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA), said: “We have spent the past decade proving that renewables can be deployed at scale. That case is made. The challenge now is ensuring grids and supply chains keep pace to deliver clean power reliably to homes, industries and communities. As electrification takes center stage in the next phase of the transition, with IRENA calling for a global electrification target of 35% by 2035, resilient supply chains will be essential. Initiatives such as the Utilities for Net Zero Alliance and the Global Clean Power Alliance show the value of governments, utilities and industry working together to accelerate progress while enhancing energy security and system resilience.”

The statement was released following a high-level roundtable co-hosted by UNEZA and the Global Clean Power Alliance (GCPA), with support from the International Renewable Energy Agency (IRENA) and the COP31 Climate High-Level Champion.

At COP30, UNEZA members raised their collective annual investment target for renewables, grids and storage from $117 billion to $148 billion. Clean energy investments by UNEZA members between its inception at COP28 and 2030 are on course to exceed $1 trillion, with a significant share directed to grid infrastructure. Based on UNEZA’s planned grid investments, members are estimated to require nearly 79,000 kilometres of overhead transmission lines, 9,400 kilometres of underground and subsea cables, 273 high-voltage transformers, 12,000 medium- and low-voltage transformers, and 77 substations.

To strengthen supply chain resilience and provide manufacturers with greater long-term certainty, UNEZA launched Delivery Mechanism on supply chains with focus on pooled procurement and members committed to three priority actions:

* Provide annual demand signals to strengthen investment certainty and expand manufacturing capacity.

* Advance harmonised equipment standards and technical specifications to simplify procurement and improve interoperability.

* Scale coordinated procurement and innovation to reduce supply chain risks and accelerate grid deployment.

* Together, these commitments aim to encourage greater manufacturing investment, reduce procurement risks and accelerate the delivery of critical grid infrastructure.

The initiative builds on UNEZA's broader mission to accelerate the global energy transition by bringing together the world's leading utilities to address shared challenges, including supply chains, capital mobilisation and policy barriers. Since its launch under the UAE's COP28 Presidency, UNEZA has grown to 85 member organisations and continues to drive practical, industry-led collaboration that transforms ambition into action.

The supply chain roadmap will continue to be developed with utilities, manufacturers, international organisations and governments ahead of COP31, supporting global efforts to strengthen energy security, build more resilient electricity systems and accelerate the deployment of clean energy infrastructure worldwide.