Network readiness

The network readiness to welcome additions is a critical enabler of electrification and of the decarbonization of the economy.

Additions can be energy suppliers, such as renewables; energy consumers, for example, industrial plants that were not using electricity but other sources of energy (such as fossil fuels); data centers that require a substantial amount of electricity to operate; and even increasing household needs as heating and transportation are electrified.

To cope with higher levels of supply and demand, there must be additional investments in grid capacity. The additions should be processed and operationalized in a fast manner to ensure smooth and competitive electrification of the economy.

There is no official reporting of a metric that captures the network readiness—a critical element of the energy transition.

We expect new reporting guidelines to come into force in the near future, which will provide clear data on demand and supply capacity. When this occurs, we will be able to update this indicator of the Index.