19 INSIGHT | Focus On “The development of more reliable and smarter grid infrastructure for power transmission and distribution is key for the integration of renewables” said Juan Mogollon, Energy Division Executive Vice President at Prysmian Group. “The ambition of Prysmian is to act as an enabler for accelerating the energy transition by supporting the development of greener and smarter power grids with innovative cable technologies, ensuring higher performances, reliability and sustainability.” The U.S. Energy Transitions Commission found in a recent report that around $ 3.5 trillion a year of capital investment will be needed on average between now and 2050 to build a net-zero global economy, up from $ 1 trillion per annum currently. Of this, it said 70 percent is required for low-carbon power generation, transmission, and distribution. Last year the U.S. government announced $ 13 billion in new financing opportunities to expand and modernize the nation’s electric grid. Alongside a $ 2.3 billion program for grid resilience investments to reduce impacts due to extreme weather and natural disasters, this funding is part of its “Building a Better Grid Initiative ”. As power demand continues to surge, the present infrastructure has left the U.S. and Europe facing a growing capacity crisis and emerging bottlenecks. Grid operators are rushing to increase investments to build adequate networks to avoid the power instability that leads to higher electricity costs. The need for grid hardening has come into sharp focus in recent months in the U.S., after President Joe Biden approved an ambitious plan to produce more renewable energy to help the U.S. reach a goal for net zero emissions by 2050. The integration of renewable sources such as wind and solar needed for the shift from fossil fuels will require much more grid capacity. And the increased electrification of previously fossil-fueled processes and industries, at the same time, will increase energy demand, possibly from renewable sources. Grid hardening will also involve changing the layout of the grid, as the locations of renewable energy sources are far from their point of consumption. This will require the building of new and substantial power lines and adjustments to avoid congestion. Due to the intermittent nature of renewables, grids will also need new links to storage and management systems. All of these changes call for significant financing and enhancement of the grid. 3.5$ trillion/year Capital investment needed between now and 2050 13$B "Building a Better Grid Initiative" GRID HARDENING INVESTMENTS IN THE U.S. 70% of which for low-carbon power generation, transmission and distribution to expand and modernize the grid
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