Climate change is accelerating dramatically, and energy remains the primary driver, responsible for roughly three-quarters of global greenhouse gas emissions. In this context electricity offers the most effective path for the energy transition: it avoids conversion losses (unlike hydrogen or synthetic fuels), serves multiple uses (mobility, heating, cooling, and more), and can be generated entirely from renewable sources.
Yet generating clean power is only half the challenge. 
Delivering it requires modern, intelligent, and resilient transmission grids.

For this reason, in this report – developed with the support of Terna – we focus on the critical role 
of  Transmission System Operators (TSOs). These organizations sit at the center of the energy transformation: they manage the backbone of the power system, enable renewable integration, and ensure grid stability as demand rises and complexity grows. 
In many ways, TSOs are not just operators; they are catalysts for the net-zero transition.
Our goal was to better understand how innovation reaches the grid, and what – or who – enables TSOs 
to accelerate their evolution. We analyzed both internal capabilities and the external environment that 
shapes them: institutions, investors, startups, and innovation networks.

Key Takeaways

1. Institutions drive momentum and market alignment

Policy signals provide direction, mobilize capital, shape incentives, and compel industry 
action at scale. Ambitious frameworks such as the European Green Deal and the upcoming European Grids Package are accelerating deployment, while US policy uncertainty risks slowing progress.

2. More Gridtech and transmission-focused startups are needed

Today, transmission-related ventures account for only 2.8% in Europe and 1.6% in the US of all scaleups – 
still a niche in the broader startup landscape. We need more innovators in this critical space.

3. More capital is required

While the US deploys higher absolute funding levels thanks to its deeper venture market, Europe is expanding more steadily – with Gridtech investment nearly quadrupling since 2020. Although still representing only ~2% of total venture flows in both regions, rising deal volumes and sizes indicate growing maturity.

4. Innovation networks accelerate collaboration and adoption

Collective action reduces risk and shortens deployment cycles. Platforms such as the TSO Innovation Alliance (bringing together Terna, Red Eléctrica, TenneT, and others) enable shared testing, validation, and technology adoption – aligning operators and accelerating innovation across borders.

In a Nutshell

The grid is the foundation of decarbonization, and innovation around it – what we call Gridtech – 
is the new strategic frontier. While still representing a small share of global investment, Gridtech is gaining momentum, particularly in Europe, where stable policy frameworks and coordinated action are creating favorable conditions for leadership in the energy transition. The path to net-zero will require collaboration across institutions, industry, and innovators.

At Mind the Bridge, we are committed to fostering these bridges. The future energy system will not be built by a single actor – but by a connected ecosystem working toward a shared goal.