While renewable investments continue to increase across the global energy sector, establishing a holistic energy transition requires $21.4 trillion investment in power grids by 2050.
According to DNV's "Energy Industry Insights 2025-From Silos to Systems" report, shortcomings in current infrastructure and governance models failed to support this transition adequately.
In the study conducted as part of the report, 96% of energy executives said that existing power transmission infrastructure was insufficient to connect renewable energy production sites with major demand centers.
Among those working in the renewable energy sector, only 19% believed that current grid planning was sufficient.
Additionally, 84% of participants believed that existing infrastructure didn't meet system needs, while 86% said that permitting processes were a major barrier to achieving net-zero targets.
The report underscored that electricity, gas, and consumer behavior were all interdependent elements of modern energy systems and needed to be considered as a whole.
- Direction of investment takes precedence over its scale
DNV noted that the problem wasn't merely the scale of investment but whether the investments were directed to the right areas.
In many countries, large renewable energy projects were approved before building sufficient transmission infrastructure. This resulted in renewable energy being curtailed due to grid limitations.
The report also showed that large energy consumers, especially industrial facilities, became both a burden and a potential solution for the grid.
As of this year, 35% of energy-intensive industries signed direct power purchase agreements with private energy producers.
Meanwhile, 51% believed that existing grid infrastructure in their regions didn't support their renewable energy goals.
DNV concluded that unless market structures, digital systems, consumer coordination, and infrastructure permitting were managed through a "whole energy systems" approach, the energy transition would continue to fall short.
The report summarized its core warning as follows: "The energy transition wasn't merely a change of source - it was a systemic evolution."
By Murat Temizer
Anadolu Agency
energy@aa.com.tr