The Utilities for Net Zero Alliance (UNEZA) has pledged to invest over $116 billion annually in clean energy and power grid infrastructure as part of a global push towards achieving net-zero emissions.
The commitment was announced during New York Climate Week at a roundtable organized in collaboration with the World Trade Organization, signaling a major financial boost for renewable energy generation and the modernization of grid systems worldwide.
UNEZA, a coalition of 39 members including 32 of the world’s largest utilities and energy companies, serves over 327 million customers globally. With this initiative, the alliance aims to accelerate the transition to clean energy, while addressing critical bottlenecks in grid infrastructure.
Nearly half—48%—of the total investment is earmarked for upgrading transmission and distribution networks to accommodate renewable energy sources and enhance system resilience.
The announcement aligns with UNEZA’s mission to expand and modernize grid infrastructure, a vital component for integrating large-scale renewable energy projects. Francesco La Camera, Director-General of the International Renewable Energy Agency (IRENA) and host of the UNEZA Secretariat, emphasized the urgency of this investment.
“Our top priority is to build and upgrade the grids needed to meet the global target of tripling renewable power capacity by 2030,” La Camera stated. “IRENA estimates that global infrastructure investments will need to reach $720 billion annually by 2030, and much of this will need to come from the private sector. Today’s commitment by UNEZA represents a significant step in closing the finance gap and highlights the essential role utilities play in the energy transition.”
The investment commitment also reflects UNEZA’s broader strategy to send a clear message to suppliers and policymakers. Industry experts have long identified supply chain constraints and regulatory hurdles as major barriers to achieving ambitious renewable energy targets. UNEZA members are calling on policymakers to harmonize equipment standards across regions, promote free trade in essential materials, and adopt forward-looking, long-term planning to ensure that power system infrastructure can meet future demands.
Jasim Husain Thabet, Group CEO of TAQA and co-chair of UNEZA, highlighted the critical need for cooperation across the energy sector to overcome these challenges. “This announcement shows that the utilities community is serious about the energy transition and committed to addressing bottlenecks through cooperation and dialogue,” Thabet said.
He pointed out that key power system equipment, such as transformers, often face long lead times, which could delay progress towards meeting renewable energy goals. “If we are to triple renewable capacity by 2030 and achieve net zero by 2050, we need robust and resilient supply chains across the entire power system value chain,” Thabet added.
The Alliance’s call for policy reforms also received support from Alistair Phillips-Davies, CEO of SSE and UNEZA co-chair. He stressed that disjointed and short-term policymaking in many regions has made it difficult for supply chain companies to invest in the long-term capacity needed to support the energy transition.
“A significant increase in supply chain capacity is required to deliver the clean energy transition,” Phillips-Davies said. “While innovative approaches are emerging, we need utilities to provide greater certainty about our investment plans and help guide policymakers towards a more strategic, collaborative, and forward-thinking approach. This will ensure we can scale up in time to meet the future energy demands.”
IRENA’s recent estimates underline the importance of scaling up investment in renewable energy capacity. The agency projects that annual investment in renewable energy must reach $1.55 trillion by 2030—more than double the current grid infrastructure investment target of $720 billion per year. This surge in funding is essential to meet the ambitious goal of tripling global renewable energy capacity by 2030.
UNEZA’s $116 billion annual pledge is a major step toward bridging the investment gap, and the alliance’s recommendations to policymakers aim to create a more conducive environment for rapid progress. Harmonizing equipment standards across jurisdictions and streamlining multi-project approvals could help alleviate supply chain bottlenecks and ensure that essential equipment reaches utilities in time to meet growing demand for clean energy.
The global utilities sector is increasingly seen as a key player in the fight against climate change, with UNEZA members leading efforts to decarbonize the power system and create more resilient energy infrastructure. The alliance’s pledge is expected to drive investment not only in renewable energy projects but also in advanced technologies that improve grid efficiency and reduce carbon emissions.
