Introduction The transformation of electric power systems is accelerating across the world. Electricity demand is growing at twice the pace of overall energy demand, driven by the electrification of industry and transport, rapid expansion of data centres, heating, cooling and broader digitalization. In 2024, global energy demand grew by 2.2%, while electricity use increased by 4.3%, outpacing both historical trends and global GDP growth.1 By 2035, electricity demand is likely to rise to about 37,800 terawatt-hours – a 40% increase from today.2 Investment trends reflect this shift: global energy investment is set to reach $3.3 trillion in 2025, with about $2.2 trillion directed towards renewables, nuclear, grids, storage and electrification – twice the amount invested in fossil fuels.3 Electrification has become a core driver of economic competitiveness, making modern power systems central to energy security and sustainable growth. Power systems encompass how electricity is generated, transmitted, distributed and used – from power plants and grids to demand and flexibility mechanisms. Looking ahead, power systems will need to integrate much larger volumes of clean energy from intermittent sources, expand affordable access and operate in increasingly digital and interconnected ways. They will also need to manage new types of loads – including very large data centres, often exceeding a gigawatt – and strengthen resilience to emerging climate and cyber threats. Addressing these challenges requires new approaches to system planning and regulation, grid management and security. Innovation is the engine of power system transformation. It brings together clean technologies, digital tools and new business models that improve system performance and unlock value. Many solutions are already available and the next phase of progress depends on scaling-up proven approaches and applying them more widely. The speed at which these innovations are deployed and the extent to which they reduce cost and improve reliability will shape how quickly cleaner and more resilient power systems emerge. Many effective solutions are systemic, requiring integrated planning that aligns demand growth, grid expansion, digital optimization and multi- energy developments. Realizing this system value depends on coherent market, regulatory and policy frameworks, supported by consistent governance and coordinated public-private investment. This briefing paper accompanies the Innovation Playbook for Future Power Systems, developed by the World Economic Forum in collaboration with Accenture. The Playbook showcases practical, scalable innovations delivering system value across diverse contexts. It is designed to provide a platform for sharing solutions to help decision-makers identify those suited to their market conditions and system needs – supporting the transition to more flexible, resilient and secure power systems for a highly electrified and decarbonized economy. Electricity Reinvented: How Innovation is Transforming the Future of Power Systems January 2026 Global energy investment is set to reach $3.3 trillion in 2025, with about $2.2 trillion directed towards renewables, nuclear, grids, storage and electrification – twice the amount invested in fossil fuels. Electricity Reinvented: How Innovation is Transforming the Future of Power Systems 3

Electricity Reinvented 2026