Global supply chain shortages are significantly slowing down the expansion of electricity networks by doubling the price of essential equipment and extending wait times for critical parts. According to the authors of the newly released report, these bottlenecks create a major risk of project delays and sharply rising costs for countries trying to upgrade their power systems.
The report notes that “prices of power transformers and cables nearly doubled between 2019 and 2024,” and as a result, “the global average lead time for large power transformers increased from about 1.5 to 3 years.”
In simple terms, the world is trying to build more power lines than the current factories and shipping companies can handle. This high demand has driven up the cost of the heavy-duty components needed to move electricity, like transformers and underwater cables. Because there are so few specialized factories and ships available, projects that used to start construction relatively quickly now face years of waiting just to get the necessary materials delivered.
The report “Financing the ASEAN Power Grid” was published by the International Energy Agency in Paris in March 2026. Lead author James Bragg and a team of analysts provide a comprehensive framework for unlocking the capital required to build a more integrated and sustainable energy future for Southeast Asia.
