According to the IEA's report, the failure to properly digitalize and upgrade network infrastructure could result in a reduction of economic output in emerging and developing countries by almost USD 1.3 trillion.

This reduction would stem from decreased productivity, lost sales, and unnecessary expenditures on backup generation, thereby jeopardizing net-zero targets. The report underlines the need for expanded electrification and more sophisticated approaches to match electricity demand and generation, especially during peak periods, given the growing demand for electricity in emerging and developing economies.

The IEA report will be presented at the Powering the Future event during the IEA 8th Annual Global Conference on Energy Efficiency, emphasizing the significance of digitalization in ensuring efficiency, resilience, and decarbonization. The report emphasizes the urgent need for increased investment in grids, estimating that annual investments should more than double to around USD 750 billion by 2030, compared to the current level of approximately USD 320 billion. The IEA urges governments and stakeholders to prioritize digitalization as a crucial enabler of reliable, secure, and efficient power systems, which will be instrumental in achieving climate goals and accelerating clean energy transitions globally.

Source: IEA