Grid tools could unlock 330GW in existing capacity: IEA

At least 1,700GW of RE and 600GW of batteries awaited connections in 2025.

Electricity networks could connect up to 330 gigawatts (GW) of additional generation, storage, and demand without physical reinforcement by making better use of existing infrastructure, according to the International Energy Agency (IEA).

Dynamic ratings, topology optimisation, and advanced power-flow control could unlock the capacity, equivalent to the combined installed electricity generation capacity of France and Korea, the IEA said in its Modernising Grids in the Age of Electricity report.

Connecting the same capacity through network expansion would require around $100b in investment, whilst grid-enhancing technologies can be deployed in months rather than years.

The technologies adjust how much power lines and transformers can safely carry, reroute electricity around congested lines, and push power onto underused network paths.

The IEA said they can also be added to existing networks whilst new infrastructure is being built.

“Grid expansion is not keeping pace with rising electricity demand and the broader transformation of energy systems,” the agency warned.

At least 1,700GW of advanced-stage renewable projects and 600GW of utility-scale batteries were awaiting connection in 2025, whilst congestion cost $12b in the US and $4.9b (EUR4.3b) in the European Union in 2024.

Grid expansion will remain necessary as electricity demand continues to rise, but removing all congestion would require networks to be sized for peak conditions, leaving infrastructure underused for much of the year.

“Digitalisation and grid-enhancing technologies are already delivering measurable benefits in real networks,” it said.

Dynamic ratings have generated $64m a year in avoided congestion costs in the US, whilst advanced power-flow control has provided more than 2 GW of additional transfer capacity in Great Britain.

The IEA cautioned that deployment remains uneven, with proven technologies often failing to move from individual projects into standard practice.

It said skills and organisational readiness, data availability and quality, trust, and regulatory frameworks are amongst the main barriers to wider adoption.

Amongst surveyed network operators, 64% identified skills and organisational readiness as a major barrier, whilst 60% cited data availability and quality, 60% trust-related issues, and 56% regulatory frameworks.

The IEA said these technologies should complement rather than replace grid expansion, with the capacity they release ultimately constrained by the physical network, weather, and wider system conditions.

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