Utilities for Net Zero Alliance doubles investment in grids and storage ahead of COP30 targets

Global utilities have significantly increased their annual investment commitments towards the clean energy transition, raising the figure to US$148 billion per year, up from the previous target of US$117 billion. This updated commitment was announced by members of the Utilities for Net Zero Alliance (UNEZA) during COP30 in Belém, Brazil. Collectively, the alliance aims to mobilise over US$1 trillion in energy transition investments by 2030, marking a substantial escalation in the push for decarbonisation and energy system transformation.

Central to their strategy is a decisive shift in emphasis towards upgrading and expanding power grids and energy storage infrastructure. UNEZA members plan to invest approximately US$1.24 in grids and storage for every dollar spent on renewable energy generation. This prioritisation reflects the urgent need to address grid constraints, which are increasingly seen as the biggest bottleneck in the energy transition, especially in emerging and developing economies where resilient infrastructure is crucial for climate action, energy security, and sustainable growth.

The investment plans include the delivery of tens of thousands of kilometres of new and upgraded grid infrastructure alongside substantial battery storage projects. By 2030, members expect to more than triple their combined renewable energy capacity relative to 2023 levels. The annual breakdown of spending is expected to reach US$66 billion for renewables and US$82 billion for grids and storage, underscoring the vital role of modernised and flexible power systems in facilitating the integration of larger shares of renewable energy.

This announcement was made during a high-level ministerial meeting on grids, where governments and multilateral development banks (MDBs) endorsed new global Climate Finance Principles for Green Grids. Developed in consultation with leading banks and financial institutions, these principles aim to unlock greater pools of capital for grid projects in emerging economies, addressing a critical financing gap. Notable supporters include the African Development Bank, British International Investment, the Inter-American Development Bank, and the UK Government.

According to the COP30 CEO, Ana Toni, achieving global goals, such as tripling renewable energy capacity and doubling energy efficiency by 2030, will only be possible if power grids develop in tandem. She emphasised that UNEZA and the new financing principles are designed to translate global commitments into actionable progress by linking finance, policy, and implementation to build resilient power systems fit for a clean-energy future.

UNEZA, established under the UAE’s COP28 Presidency to overcome systemic obstacles in power system transformation, operates under the guidance of the International Renewable Energy Agency (IRENA) and the Climate High-Level Champions. Jasim Husain Thabet, Group CEO of TAQA and UNEZA co-chair, highlighted the alliance’s tangible delivery, noting that utilities are mobilising for the most significant infrastructure upgrade in a generation, aligned with previous COP pledges.

Likewise, Martin Pibworth, CEO of SSE and co-chair of UNEZA, welcomed the Brazilian Presidency’s focus on implementation, noting the alliance’s prior achievements, including building new grids stretching from Belém to New Zealand and new renewable capacity sufficient to meet half India’s peak demand. These accomplishments reflect real progress towards an energy transition that must continue at pace.

IRENA estimates that approximately US$670 billion annually is needed between now and 2030 to build and strengthen electricity grids required for system transformation, further underlining the scale of the challenge. Francesco La Camera, IRENA’s Director General, stressed the need for systemic change beyond merely adding wiring, calling for the creation of secure, affordable, and reliable power systems while fostering collaboration among regulators, utilities, planners, and ministries to attract the investment certainty investors require.

To accelerate this work, UNEZA announced a suite of delivery mechanisms to overcome barriers such as supply chain issues and capital flow restrictions. These include pooled procurement initiatives to aggregate demand across utilities with an initial focus on small island developing states, data-driven planning to unlock stranded renewable capacity, and consultations towards launching a global Investment Trust Fund to mobilise long-term capital for grid and renewable infrastructure. These mechanisms are intended to enhance economies of scale, lower equipment costs, improve regulatory frameworks, and facilitate access to finance.

The alliance is also partnering with the Global Clean Power Alliance (GCPA), led by the UK government, to address global power sector supply chain vulnerabilities. The GCPA has designated UNEZA as its key supply chain mission delivery partner, linking governments and utilities to bolster supply chain resilience.

Roaming beyond the utilities community, voices such as Robin Zeng, Chairman of CATL, recognise energy storage as a critical flexibility resource essential to realising the energy transition’s security and reliability objectives. Similarly, Dan Ioschpe, the Climate Change High-Level Champion for COP30, acknowledged the leadership and collaboration emerging from UNEZA as grounds for optimism, crediting their commitments to expanding renewables, strengthening grids, and deploying storage as pivotal corporate actions defining this decade.

In the broader market perspective, recent research projects that energy utility capital expenditures will exceed US$1 trillion between 2025 and 2029, focused on modernising generation, transmission, and distribution networks and integrating advanced technologies such as smart grids, electric vehicles, and cybersecurity. These investments are poised to support sustained profit growth and industry transformation, reinforcing the strategic importance of infrastructure development highlighted by UNEZA.

As COP30 concludes, the renewed investment plans and strategic frameworks unveiled by UNEZA members underscore a critical phase in industrial decarbonisation. They offer a practical pathway to scaling renewable capacity, modernising grids, and embedding storage solutions essential for meeting global climate goals and supporting resilient, sustainable energy systems worldwide.