The grid can't keep up
The world is building clean power and electricity offtake faster than grids can absorb it. Demand for new grid connections is accelerating—driven by the electrification of industry, transport, and heating, the rapid build-out of renewable generation and storage, and the need to replace aging grid infrastructure that is reaching the end of its lifecycle. Yet, many grid connection processes were not designed for this scale or complexity. As a result, long queues and delivery delays have emerged as critical friction points, limiting progress on decarbonization, electrification, and industrial competitiveness.
Where the system breaks
Two structural bottlenecks stand out:
- connection studies - in many jurisdictions, studies are still processed sequentially, with limited prioritization based on readiness or system value.
- physical grid delivery - meanwhile, even as grid operators ramp up CAPEX plans, infrastructure delivery is being slowed by resource shortages, outdated permitting frameworks, and fragmented supply chains.
A new BCG report identifies a comprehensive set of levers that grid operators and policymakers can use to reform connection processes, ranging from measures such as queue hygiene and batch studies to flexible connections, targeted locational incentives, anticipatory investments, and new market-based allocation mechanisms.
From talk to transformation
In addition, to move from diagnosis and lever-longlisting to action, this report also outlines practical recommendations for grid operators. These recommendations are designed to help prioritize and sequence reform efforts.
While some grid operators are moving toward more integrated reforms, deploying multiple levers in tandem, this remains the exception. Even in these cases, the effectiveness of such holistic packages is still being tested in practice. Many other jurisdictions continue to rely on piecemeal or ad-hoc approaches, and some have yet to act at all. To truly debottleneck the transition, grid operators must consider the full suite of tools and tailor coordinated, high-impact reform strategies that fit their context and broader market design philosophy. In addition, we also provide recommendations for markets that have not yet encountered large queues, offering a chance to adopt preventative measures before congestion sets in.
The high price of standing still
The cost of inaction is clear. Industrial customers face electrification delays and a loss of global competitiveness. Renewable energy, data center, and utility-scale battery project developers risk stranded capital or are being pushed to reconsider project locations or defer timelines. Regulators and the public sector face mounting pressure as grid constraints threaten broader energy transition, economic, and policy goals. Grid operators are under growing operational strain, facing delivery backlogs and reputational risks in an environment that is increasingly visible, politicized, and high-stakes.
Grid connection reform is a foundational enabler of the energy transition. The time to act holistically, and with urgency, is now.
