The global energy sector is undergoing a significant transformation as renewable investments continue to increase. However, achieving a holistic energy transition requires a substantial investment of $21.4 trillion in power grids by 2050, according to a report by DNV. The report, “Energy Industry Insights 2025-From Silos to Systems,” highlights the shortcomings of current infrastructure and governance models in supporting this transition. The study found that 96% of energy executives believe that existing power transmission infrastructure is insufficient to connect renewable energy production sites with major demand centers.
Moreover, only 19% of respondents in the renewable energy sector believe that current grid planning is sufficient. The report also notes that 84% of participants believe that existing infrastructure does not meet system needs, while 86% say that permitting processes are a major barrier to achieving net-zero targets. The study underscores the importance of considering electricity, gas, and consumer behavior as interdependent elements of modern energy systems.
The report emphasizes that the direction of investment is more important than its scale. In many countries, large renewable energy projects are approved before sufficient transmission infrastructure is built, resulting in renewable energy being curtailed due to grid limitations. Additionally, large energy consumers, such as industrial facilities, can be both a burden and a potential solution for the grid. As of this year, 35% of energy-intensive industries have signed direct power purchase agreements with private energy producers.
However, 51% of respondents believe that existing grid infrastructure in their regions does not support their renewable energy goals. The report concludes that the energy transition will continue to fall short unless market structures, digital systems, consumer coordination, and infrastructure permitting are managed through a “whole energy systems” approach. The report summarizes its core warning, stating that the energy transition is not just a change of source, but a systemic evolution.
To achieve a successful energy transition, it is essential to address the existing infrastructure and governance models. The report suggests that a holistic approach is necessary to ensure that investments are directed to the right areas. This includes considering the interdependence of electricity, gas, and consumer behavior, as well as managing market structures, digital systems, consumer coordination, and infrastructure permitting. By taking a “whole energy systems” approach, the energy sector can overcome the existing barriers and achieve a successful transition to renewable energy.