The International Renewable Energy Agency (IRENA) warns that the lack of electrical infrastructure is beginning to limit the growth of renewable energy and estimates that it will be necessary to double global investment in grids , reaching approximately one trillion dollars annually during the period 2026-2035.
The figure represents a significant increase over the $500 billion currently allocated annually to these facilities, according to the World Energy Transition Outlook 2026 , which argues that the deployment of new clean generation must advance simultaneously with the expansion of electricity transport and distribution.
The diagnosis introduces a warning for energy markets: although renewable technologies continue to reduce their costs and break installation records, insufficient networks, storage and flexibility could limit the incorporation of new projects .
In fact, the agency points out that the lack of infrastructure to connect new generation is already hindering the addition of renewable capacity, forcing a reconsideration of investment priorities for the next decade.
The challenge becomes even greater when considering installed capacity projections. In 2025, the world reached approximately 5.2 terawatts of renewable power , while the 1.5°C compatible scenario developed by IRENA requires increasing that figure to 18.4 terawatts by 2035 .
This means incorporating, on average, more than 1,300 net gigawatts annually between 2026 and 2035 , a pace that must be maintained at similar levels during the following years.
Solar photovoltaic and wind energy will account for much of that expansion, but their integration will require more interconnected, digitized electrical systems capable of managing variations between generation and demand.
In this context, networks cease to be merely a complementary infrastructure and become one of the components that determine the speed of the energy transition.
Storage capacity will need to increase sixfold in less than a decade
Investment needs are not limited to transmission and distribution lines. The report also projects a transformation of energy storage on a global scale.
According to IRENA's 1.5°C scenario, installed storage capacity will need to increase from approximately 416 gigawatts in 2025 to 2,530 gigawatts in 2035 , representing a growth of more than six times in just ten years.
By 2050, that infrastructure would have to reach almost 6,860 gigawatts , accompanying the incorporation of higher percentages of variable generation into the electrical systems.
The organization also distinguishes different flexibility needs. Markets must respond to variations of seconds and hours, as well as to daily, weekly, and seasonal imbalances, depending on the characteristics of each system.
For this reason, IRENA identifies a combination of technologies that includes batteries, pumped-storage hydroelectric plants, international interconnections, demand management, dispatchable renewable generation and digital operating tools.
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None of these solutions, considered individually, can meet all the flexibility needs that will arise with the electrification of the economy.
Demand also represents increasing pressure. The advancement of electric vehicles, climate control, electrified industrial processes, and data centers linked to artificial intelligence necessitates increased network capacity and improved planning.
In particular, the report highlights that data centers can generate high and geographically concentrated electrical loads, with growth rates exceeding the time required to develop electrical infrastructure.
A transition that will require more than $256 trillion
The magnitude of the challenges is reflected in global financial needs. IRENA estimates that the 1.5°C scenario will require more than $256 trillion cumulatively between 2026 and 2050 , considering infrastructure investments and technology acquisition expenditures in consumer sectors.
The annual equivalent amounts to approximately $10.3 trillion , about $3.8 trillion more per year than estimated in the 2023 edition.
The agency attributes this difference to a combination of factors, including the delay in the transition, technological cost updates, greater regional disaggregation of the analysis, and additional measures incorporated into the new scenario.
However, mobilizing resources will not be the only challenge. IRENA warns that the geographical distribution of funding remains uneven, with a heavy concentration of investment in China and advanced economies.
This situation contrasts with the needs of regions such as Africa, where renewable capacity should increase approximately sevenfold by 2035 under the 1.5°C scenario.
To address these differences, the organization considers stable regulatory frameworks, risk mitigation instruments, concessional financing, and greater private capital participation to be necessary.
Economic prospects are also part of the assessment. According to their models, accelerated decarbonization could reduce average electricity prices for end consumers by approximately 9% in 2035 and 15% in 2050 , compared to the scenario based on existing energy plans.
These reductions correspond to the accelerated decarbonization scenario of the report and do not constitute forecasts of effective tariffs for each country.
Thus, the World Energy Transition Outlook 2026 identifies a change in the conditions necessary to sustain renewable growth: the installation of new power will need to be coordinated with investments in networks, storage, efficiency and electrification .
The ability to implement these infrastructures over the next decade will largely determine how much of the renewable generation potential can be effectively integrated into electrical systems.