The world will need to invest up to $198 billion (£117.6bn) a year in infrastructure such as substations and power lines in the next decade to meet the rise in electricity demand, a new report claims.
Up to $170 billion (£101bn) would have to be invested on transmission and distribution (T&D) infrastructure and up to $27.3 billion (£16.2bn) in smart grid infrastructure every year to improve the efficiency and reliability.
New data from smart infrastructure market intelligence firm Northeast Group suggests investment in smart grids is accounting for a growing share, with the world expected to invest $230 billion (£136bn) by 2024.
This will include spending on substation automation, fault detection and extra grid monitoring as well as control technologies in the distribution grid, it claims.
Emerging markets are expected to represent the largest growth in T&D spending, with Africa and Southeast Asia the fastest growing regions as they build new infrastructure.
The individual nation spending the largest amount in T&D will be India, outpacing China by 2024, the report suggests.
However, North America and Europe will only account for around 1% of T&D spending but will invest the most in smart grids, with Europe expected to spend $11.5 billion (£6.8bn) a year followed by North America and East Asia.