By Anadolu Agency
October 7, 2026 5:59 amInadequate electricity grid capacity is emerging as one of the biggest bottlenecks to the global energy transition, holding back renewable energy projects and limiting the expansion of clean power, according to a Copenhagen Infrastructure Partners (CIP) executive.
Ole Kjems Sorensen, lead partner at Denmark-based global energy infrastructure investment firm CIP, said for years the transition had focused on expanding generation capacity while neglecting the grids needed to support it.
“We’ve long discussed the need for more renewable power, but we’ve overlooked the need to expand the grids as well,” Sorensen told Anadolu.
He said grid constraints were already holding back viable renewable projects, while more than $20 trillion could potentially be needed for grid investment over the next 20 to 25 years.
Governments and transmission system operators (TSOs) do not have sufficient financial capacity to fund the scale of investment required to expand electricity grids, he said.
“We need new financing structures that bring private capital in as partners to publicly owned transmission companies,” Sorensen added.
– Governments need predictable frameworks
Sorensen said governments have a key role in accelerating the transition by expanding grids, streamlining permitting and creating predictable investment frameworks.
He said governments need to create the right conditions for the energy transition by establishing stable policies and regulations that can attract private investment.
“Investors need visibility over the next 10 to 20 years to commit capital to major infrastructure projects,” he added.
Looking ahead to COP31, Sorensen said governments should focus on delivering existing commitments rather than setting new targets.
“We should no longer focus so much on setting targets. Now it’s really about how we deliver on them,” he said.
Sorensen also stressed the need to make renewable energy projects “bankable” so they can secure financing, saying government support does not necessarily mean subsidies.
Contracts for difference (CfDs), he said, can provide long-term price certainty and help unlock renewable energy investment.
– Denmark offers lessons on grid connectivity
Sorensen said Denmark’s experience integrating renewables offers lessons for other countries, particularly through cross-border electricity links.
“Connectivity across countries is a key part of the solution,” he said, noting that stronger interconnections can make power systems more resilient and help manage variable renewable generation.
Denmark’s connection with Norway allows it to use Norwegian hydropower as a form of storage, supporting a higher share of intermittent renewables.
Sorensen also highlighted fast-growing emerging economies, where rising power demand and reliance on coal and imported fossil fuels make renewable investment particularly impactful.
“These are the markets where it really matters now in terms of the energy transition,” he concluded.
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