Switched On Power Grid Spending Surges But Capacity Still Lags
Jan 22, 2026
Peter Wall, Head of grids research at BloombergNEF, discusses the surge in global grid spending, which hit $480 billion, a 17% increase. He highlights that much of this funding is dedicated to replacing aging assets rather than expanding capacity. Wall examines the pressure on grids due to aging infrastructure, supply-chain issues, and the rising prominence of renewables that necessitate new grid locations. He also sheds light on the regulatory landscape shaping investment choices and how utilities are financing large-scale grid programs.
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Record Global Grid Capex Burden
- Global grid capex hit a record ~USD 480 billion, up ~17% year-on-year.
- That spending burden ultimately falls on consumers as future bills or taxes.
Replacement Is A Large Share Of Spending
- Around 30–40% of current grid spending replaces worn-out assets rather than adds new capacity.
- Many systems deferred upgrades for decades and are now reaching end-of-life simultaneously.
Investment Escalator Runs Through 2050
- Grid investment needs continue through 2050 for replacements, renewables, demand growth and digitalization.
- Digital equipment has shorter lifetimes, increasing future replacement cycles.