Global electricity demand is projected to double by 2050, spurred by economic growth and the increasing adoption of electric vehicles, heating and industrial processes, according to a report by DNV.
This surge in demand will predominantly be met by renewable energy sources, particularly solar and wind, which are anticipated to contribute 70% of the world’s electricity by mid-century.
To accommodate this shift, there is a pressing need for substantial grid expansion and enhancements in grid management technologies.
Lithium-ion batteries are set to dominate the energy storage market, providing significantly more capacity than traditional methods such as hydropower and pumped storage.
Grid-enhancing technologies could potentially increase existing grid capacity by up to 50%, facilitated by advances in digitalisation and targeted financial incentives.
The report also highlights the role of artificial intelligence (AI) in optimising grid operations and managing renewable energy variability, albeit with a call for robust cybersecurity measures.
Ditlev Engel, Chief Executive Officer for Energy Systems at DNV, said: “There will be no transition without transmission.
“The new energy system will require data-driven solutions and policies that address all interconnections, from permitting to the integration of AI and cyber-resilience.”
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