Upgrading power grids to accommodate renewable energy is a key issue at
climate talks
[November 09, 2026] By
ANTON L. DELGADO
Outdated power grids are a major hurdle in the transition to renewable
energy, since older systems often can't absorb all the electricity from
new, cleaner sources.
This threatens global efforts to curb climate change by reducing fossil
fuels and switching to renewable energy such as solar and wind. At U.N.
climate talks kicking off this week, co-hosts Turkey and Australia want
more ambitious goals to slash fossil fuels, install renewables and
upgrade grids.
Grid concerns are gaining urgency this year as nations race to improve
their energy security following the Iran war. The U.N. recently launched
a new initiative to rally funding for grid upgrades in Africa and
Southeast Asia.
“There needs to be a massive, massive, massive scaling up of investments
into grids if we are going to get close to meeting our climate, energy
and development goals,” Selwin Hart, special adviser to the U.N.
secretary-general on climate action, said.
Climate talks address grid bottleneck
At the U.N. climate talks, hosted in the Turkish resort city of Antalya,
organizers describe modern and reliable electric grids as “the backbone
of the clean energy system.”
But billions of dollars are needed to upgrade out-of-date grids. These
steep costs could hinder further renewable energy installations.
During the U.N. General Assembly in September, the global body launched
a Global Grids Accelerator to speed up international funding for
electricity infrastructure in Africa and Southeast Asia.
“We’re very confident that the long-term trend is an acceleration of the
pace of the energy transition, but we need the infrastructure, grids and
storage, to really keep pace,” Hart said.
Annual investment in electricity generation, such as building new power
plants, has risen by almost 70% since 2015, reaching $1 trillion a year,
according to the International Energy Agency. Yet the agency noted
annual grid spending has risen at less than half that pace.
To meet electricity demand through 2030, the IEA calculates annual grid
investment must increase by about 50% from today’s $400 billion per
year. Any delays will substantially increase global emissions by
prolonging reliance on fossil fuels, the IEA warns.
“Power grids have not been readied enough for the scaleup of renewable
electricity generation,” said Jan Rosenow, a professor of energy and
climate policy at Oxford University. “We have been complacent in the
past and now the grid has become a real bottleneck.”
Old grids slow energy transition
Power grids deliver electricity from power plants to homes through a
network of transmission and distribution lines, substations and
transformers.
Originally designed around large, centralized power plants, many of
today's power grids were built like one-way roads, with producers
sending electricity to consumers. These older one-directional grids are
being overwhelmed by demand surges and a boom in renewables.
Grids have a maximum capacity of electricity that they can safely store,
transport and distribute. If a grid is already at capacity, solar and
wind farms can be instructed to limit their electricity output, a
process known as curtailment.
China and India, which have installed impressive amounts of renewables,
can't take full advantage of the massive buildout for this reason.
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Boats maneuver near the North Bangkok Power Plant in Bang Kruai,
Nonthaburi Province, Thailand, Oct. 24, 2026. (AP Photo/Anton L.
Delgado)
 China curtailed 360 terawatt-hours —
close to the equivalent of the United Kingdom's annual electricity
demand — of wind and solar electricity in the first half of 2026,
according to Global Energy Monitor and the Center for Research on
Energy and Clean Air.
India curtailed 11 terawatt-hours of solar generation — enough
electricity to power about 10 million homes — over the course of 15
months spanning 2025 and 2026 because of insufficient transmission
and storage capacity, according to the energy think tank Ember.
Curtailing solar and wind generation while fossil fuels continue to
supply electricity is a blow to climate efforts, especially since
China and India are among the world's largest emitters, said James
Abraham, with the New Delhi-based Council on Energy, Environment and
Water.
To transition away from fossil fuels, he said, "you need a grid
changeover. You need a grid transformation.”
Solutions exist, despite funding concerns
Upgrading existing grids to be more flexible could increase
efficiency by allowing electricity flows to adjust to supply and
demand. It could help areas with excess solar and wind energy send
it to places with higher electricity demand and fewer energy
resources.
Newer, more flexible grids could also make it easier for utility
companies to exchange electricity with households that have solar
panels or battery storage.
But many countries can't afford to take these steps, or at least not
quickly enough, according to Abraham, who said “the need is now.
It’s a time tension rather than anything else.”
Global energy security concerns deepen
The Iran war's energy shock built up momentum for the energy
transition, especially in hard-hit regions like Southeast Asia, but
investment in renewables is outpacing grid development, said Gahee
Han, with the Seoul-based nonprofit Solutions for Our Climate.
“Unless we upgrade our power grid in Asia, Asia will have no choice
but to rely on the conventional power plants, like gas or coal,” she
said. “It’s nonsense to rely on those power plants, especially
considering the energy crisis.”
One of the solutions being promoted by the Association of Southeast
Asian Nations is an interconnected power grid that would allow
countries to trade power more easily, adding a safeguard against
future shocks.
Interest in the ambitious plan, which is still in its infancy, is
growing, according to Abdul Razib Dawood, executive director of the
ASEAN Center for Energy.
“We have this crisis that will unify the region. You need your
neighbors," he said. “This is an opportunity for us to really
strengthen the cooperation.”
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