What are the barriers to electric grid expansion?

Disruptions in the supply of essential materials have significantly delayed grid modernisation efforts and the situation is only worsening. Global demand for key components such as transformers, conductors, insulators and high-voltage equipment is outpacing supply, resulting in lead times that stretch into years in some cases.

These constraints are no longer isolated incidents; they are systemic. With manufacturers operating at or near capacity, traditional just-in-time procurement approaches are proving inadequate. As a result, project proponents are increasingly shifting towards long-term framework agreements to pre-book manufacturing slots and secure supply well in advance of final project approvals.

This shift represents a critical evolution in project planning. Securing manufacturing capacity early — sometimes even before project scoping is complete — is now a prerequisite for staying on schedule. Without these strategic supply arrangements, even well-funded, technically advanced transmission projects risk substantial delays due to equipment bottlenecks.

Approval timelines for transmission projects frequently span seven to ten years or more, particularly in jurisdictions with complex environmental regulations or multi-agency oversight. Cross-border initiatives are further hampered by fragmented regulatory frameworks and inconsistent planning protocols. These delays slow progress toward net-zero goals, erode investor confidence and increase project costs.

Streamlining permitting processes, standardising approval pathways and engaging regulators early in project design are critical to removing roadblocks. Countries that fail to modernise their regulatory systems will find themselves outpaced in the global energy transition.

Transmission corridors often pass through ecologically sensitive landscapes or regions with strong community identity, creating public concern and, sometimes, legal challenges. Perceptions of environmental harm, cultural disruption or lack of consultation can derail even the most technically sound projects.

Early, transparent engagement with local communities, Traditional Owners and environmental stakeholders is no longer optional. Co-design approaches, clear benefits sharing and proactive environmental stewardship must be embedded into project planning to avoid delays, build trust and secure lasting social licence.

The dual challenge of decarbonising electricity generation while meeting rapidly rising energy demand is intensifying pressure on transmission networks. Electrification of transport, industry and buildings is accelerating, driving exponential growth in power consumption. At the same time, new sources of demand — such as data centres, hydrogen production and electric vehicle charging infrastructure — are emerging at scale.

This shift requires not only more generation, but more grid capacity, flexibility and resilience. Without significant investment in transmission infrastructure, the risk of congestion, curtailment and reliability issues will grow and undermine the energy transition and stall economic decarbonisation efforts.