To support this growth, deploying digital technologies, grid-enhancing technologies (GETs) and AI could unlock up to 330GW of untapped capacity in existing transmission and distribution networks, avoiding the need for immediate physical expansion, according to the new IEA report Modernising grids in the age of electricity. In comparison, building the same capacity through conventional network extension would cost $100bn.

Currently, connection delays and grid constraints are slowing down power projects worldwide. In 2025 alone, the IEA reports that at least 1,700GW of renewable energy projects and 600GW of utility-scale storage projects at advanced stages awaited grid connection queues. Financially speaking, network congestion generated costs of $12bn in the US and €4.3bn ($4.82bn) in the European Union (EU) in 2024, with Germany accounting for more than half of the EU total. (For more information about Dutch grid investment, see this week’s Comment piece on ‘Hydrogen in the Global South’.)

The IEA also reports that designing power networks solely for peak output leads to low asset utilisation and higher consumer energy bills. Integrating digital tools with dynamic risk management allows network operators to safely reduce safety margins and carry higher power volumes through existing equipment. Three digital grid technologies were of specific interest: dynamic ratings, topology optimisation and advanced power-flow control. Dynamic line ratings adjust line capacity based on ambient weather conditions, whereas topology optimisation reconfigures network paths around congested lines and advanced power-flow control redirects power on to underused circuits.

However, adoption of new technology faces several hurdles. In a 2026 global survey of 25 network operators, 64% cited skills and organisational readiness as barriers to digital adoption. The IEA also found that 60% identified data quality and availability as barriers, 60% cited trust issues, and 56% pointed to regulatory frameworks.  

The survey also revealed a divide between transmission and distribution networks. Distribution system operators face significant visibility gaps on low-voltage grids, despite rapid growth in rooftop solar, heat pumps and electric vehicle charging infrastructure. As a result, 60% of surveyed distribution operators lack control over at least half of their network assets.

Transmission system operators need more granular distribution data to forecast flows and manage security, while distribution operators need better information on transmission constraints and market signals to manage local flexibility and connections, according to the IEA report, which adds that without common data models, interoperable platforms and clear governance for operational data exchange, AI tools will struggle to provide the system-wide view needed to optimise the grid safely. Some operators are beginning to overcome this fragmentation by consolidating data at scale.

Workforce demographics also present constraints for utilities. Between 2015 and 2024, the IEA reports that the number of utility workers aged 55 and older grew by nearly 50%, compared to only a 20% increase for workers under 55.  

Operationally, AI adoption varies across network functions because of differing risk levels. While 70% of surveyed network operators use AI for predictive asset maintenance, the IEA states that only 23% apply AI tools within real-time control room operations due to strict requirements for auditability, explainability and operational accountability.

Speeding up grid investment and electrification

Elsewhere, UN Secretary General António Guterres launched the Global Grids Accelerator on 23 September 2026 to speed up investment in electricity infrastructure across Africa and South-East Asia. The platform coordinates policy, technical, financing and implementation support to help turn government power plans into operational projects.

‘Renewables are booming, but the grids that carry clean power are not keeping pace,’ said Guterres. ‘Grids are the arteries of the energy transition. The Global Grids Accelerator will help bring the expertise, finance and support needed to build them – expanding access, strengthening energy security and powering growth in developing countries.’

In New York, the Turkish COP31 Presidency launched the 35-by-35 Global Electrification Pledge alongside the Antalya AI Pledge, establishing commitments that aim to accelerate global network electrification and promote responsible AI applications across energy systems. The 35-by-35 Global Electrification Pledge sets a goal to increase electricity’s share of global final energy consumption to 35% by 2035 through modern grid deployment and targeted sector programmes. In tandem, the Antalya Pledge on AI and the accompanying AI for Clean Tech initiative aim to regulate data centre energy demand while deploying AI applications for emissions reduction.

Finally, in the UK, the government has established Great British Grid (GBG) as a publicly owned body under Great British Energy, creating a dedicated entity that invests directly in network infrastructure. The new entity will deploy public capital alongside private investment to fund network upgrades, work alongside existing private network operators and increase competition in transmission delivery.