The International Energy Agency has produced a new report detailing the supply chain challenges facing the world’s electricity grids. Efforts to expand and modernise electricity transmission grids around the world face mounting challenges as supply chain bottlenecks intensify, according to its new report – which finds that prices and procurement times for essential components like power transformers and cables have almost doubled in four years.
Developing transmission infrastructure is essential for energy security and reliable electricity delivery. The supply chain challenges facing the sector come as the world moves toward a new ‘Age of Electricity’, with global power consumption set to increase strongly in the years ahead. An IEA survey of industry leaders found that procurement now takes two to three years for cables and up to four years for large power transformers – twice as long as in 2021. Specialised components face even longer delays.
The new report shows that manufacturers are responding with plans and investments to increase production capacity, but these expansions will take time to implement, and uncertainty remains regarding future demand levels and the availability of skilled workers. It notes that while global investment in power transmission grew by 10% in 2023 to reach $140 billion, this figure would need to exceed $200 billion annually by the mid-2030s to meet rising electricity demand.
Read the full report for more details.
