Igor Sechin: A Doubling of the Existing Power Grid Infrastructure Will Be Required by 2040

The construction and modernization of a new type of power grids will require a doubling of the existing infrastructure, said Igor Sechin, Executive Secretary of the Commission under the President of the Russian Federation for Strategic Development of the Fuel and Energy Sector and Environmental Security, at the Energy Panel during the XXIX St. Petersburg International Economic Forum.

During his keynote report, he stated the need to build a new type of energy system. However, Sechin noted, it is important to take into account the negative experience of unjustified decisions regarding "green" energy, which was accompanied by accelerated investments. " It resulted in systemic imbalances: reserve capacity deficit, power outages, and an additional budget burden of hundreds of billions of dollars," Igor Sechin explained.  

According to him, the lack of a balanced approach to the development of the energy system has already led to an increase in electricity prices: in the US over the past 5 years — by more than 30%, in Europe — by 35-45% for various consumers.

"Power grids and energy storage remain the key constraint. The need for grid expansion and modernization will reach 60 million kilometers by 2035  and 80 million kilometers by 2040 — in fact, doubling the existing infrastructure will be required," said Sechin. 

He also voiced an estimate by Bank of America, according to which about 40% of investments (approximately 240 billion dollars per year) should be directed towards replacing existing grids, since in more than half of developed countries the average age of power grids exceeds 20 years, and in developing countries about a third of all network capacity is of such age. "Over the next 25 years, total investment in power grids could reach nearly $16 trillion. To achieve this, capital expenditures will need to be around $600 billion per year. This is almost twice the average annual amount over the previous five years," added Igor Sechin. 

At the same time, the importance of energy storage devices is growing. In 2025 alone, their cost decreased by a third, and capacity commissioning grew by more than 50%. " By 2035, the total capacity of energy storage systems worldwide is projected to increase eightfold, exceeding 7 terawatt-hours—a level comparable to the annual consumption of a small country," summarized Sechin.

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Rosneft Oil Company
June 6, 2026