The US is preparing for a massive energy transition: Every country must do this.
The electrical infrastructure in most countries, including developed ones, is quite old, which poses a significant problem for the future. The US is taking a major step in this regard by preparing to upgrade its entire grid.
As the world progresses toward greener and more sustainable transportation solutions, electric vehicles (EVs) continue to gain momentum. This increase in the adoption of EVs, the inclusion of solar and wind energy among current energy sources, and the climate crisis leading to more severe storms are putting a strain on the most fundamental infrastructure of countries: the aging electrical grid. To address these issues, the White House has announced steps to modernize the infrastructure nationwide.
The US is upgrading its electrical grid
When large-scale issues like the climate crisis and global warming combine with the current energy demands of our world, it often results in a disaster scenario. Electricity has become the most indispensable resource of our time, and the steps toward electric vehicles, artificial intelligence, and smart cities will incredibly increase demand. Global issues threaten the supply of electricity with increasingly severe storms and natural events each year.
According to a recent report by the non-profit Climate Central, stronger storms will put more pressure on aging infrastructure, leading to more weather-related power outages. In this context, the White House and the Department of Energy aim to bring together states, industry groups, and electricity regulators with their announcement.
This step by the US is described as “unprecedented,” emphasizing that grid adaptation will be done quickly and cost-effectively. The White House states that this initiative will cost tens of billions of dollars and will be the most significant public investment for a generation. The US plans to modernize its grid infrastructure with new conductors capable of carrying more electricity, including more modern high-voltage transmission lines. Municipalities, cities, state governments, companies, and institutions are expected to play a role in these plans. Legal regulations and financial support will also be provided to facilitate this process.
Every country should do the same.
While electricity demand in the US has remained relatively stable over the past few decades, it is expected to increase in the coming years due to high demand from data centers, artificial intelligence, and electric vehicles (EVs). These new consumption factors pose significant challenges for existing grids. These issues are relevant for nearly all countries. More severe storms and climate events are occurring everywhere, often resulting in power outages.
According to the International Energy Agency (IEA), if we want to keep the lights on reliably, every country needs to renew its grid by 2040. This means significantly upgrading 80 million kilometers of infrastructure, requiring investments exceeding $600 billion.
While some regions like the European Union aim to ban the sale of fossil fuel vehicles by 2030, governments worldwide are promoting EV adoption through incentives and regulations. As a result, EVs are expected to take an increasingly larger share of global car sales, with some estimates predicting 200 million EVs on the roads by 2030. However, as the number of EVs increases, so will the electricity consumption needed to charge them. If 80% of passenger vehicles become electric, total electricity consumption is expected to increase by 10-15%.
