Abstract:

The report examines how electricity grids can accommodate rapidly rising and increasingly variable electricity demand while overcoming the cost and time constraints of conventional grid expansion. The report highlights the growing importance of digitalisation, grid-enhancing technologies (GETs) and artificial intelligence (AI) for improving the utilisation, reliability and efficiency of existing transmission and distribution networks. It identifies AI applications in forecasting, optimisation, monitoring, asset management, resilience and risk assessment, alongside technologies such as dynamic line ratings, topology optimisation and advanced power-flow control. The report estimates that better use of existing networks could enable up to 330 GW of additional generation, storage and demand to connect without immediate major network reinforcement. It also examines regulatory frameworks, data infrastructure, skills, organisational readiness, cybersecurity and trust as key enablers of digital grid transformation. The report concludes that digital modernisation should complement—not replace—continued investment in new grid infrastructure, particularly in emerging markets and developing economies.