Power grids: the new battleground for industrial attractiveness?

The large-scale electrification of the economy (AI, data centres, electric mobility) is reshaping the criteria governing project location decisions. A country’s attractiveness now hinges on its capacity to deliver the necessary electrical power, in the right place and at the right time.

The grid: a key determinant of project “bankability”

For large energy consumers, grid connection is no longer a mere technical formality but a major financial issue. Visibility over the connection timeline and the guarantee of available capacity directly determine a project’s ability to secure financing (its “bankability”).

Four global models of grid access

The Observatory for Energy Transitions identifies four distinct strategies across countries. This classification is not mutually exclusive: several approaches may coexist within a single country.

• Political or industrial planning (China, India, Senegal). Grid access is organised according to distinct arrangements: in China and India, it depends notably on regional priorities and energy planning, whereas in Senegal, it is facilitated through the development of pre-equipped industrial zones, which render the connection pathway more predictable.
• Milestone-based security (Colombia, France). A clear, progressive framework in which grid connection is conditional upon reaching specific administrative milestones and guarantees.
• Queue management (United Kingdom). In response to grid saturation, the model is shifting from a “first come, first served” approach to a “first ready, first connected” approach, favouring the most mature and strategically significant projects.
• Operational and contractual approach (Germany, United Arab Emirates). A framework based either on local instruction (Germany) or on bespoke, project-by-project security arrangements underpinned by robust contractual mechanisms (United Arab Emirates).

Towards a new geography of investment

The global industrial landscape is being redrawn. Going forward, energy-intensive investment will concentrate in territories able to offer a credible grid connection pathway. Access to electricity is thus becoming the structuring factor of international competition.