Innovation Will Accelerate Cost-effective Global Renewable Energy Transformation

  • Decarbonising the global power sector in line with the Paris Agreement objectives will require an 85% share of renewable energy in total electricity generation by 2050.
  • The new IRENA report has found that innovative solutions will accelerate low-cost renewables in the power sector.
  • These findings come from a first-of-a-kind mapping and analysis of innovations that will transform the power sector, launched by the International Renewable Energy Agency (IRENA) this week in Brussels.

Countries at the forefront of the energy transformation are getting more than a third of their energy from variable renewables like solar and wind, and they’re doing it in a cost-effective manner. Innovation holds the key to a cost-effective global energy transformation.

These findings come from a first-of-a-kind mapping and analysis of innovations that will transform the power sector, launched by the International Renewable Energy Agency (IRENA) this week in Brussels.

The report “Innovation Landscape for a Renewable-Powered Future: Solutions to integrate variable renewables” contains the most in-depth assessment of the power sector transformation to date. It shows how synergies between different innovative solutions in business models, market design, enabling technologies and system operation are lowering the cost of integrating high shares of variable renewable energy (VRE), while making energy production, transmission and consumption more flexible and empowering a new generation of energy consumers.

Decarbonising the global power sector in line with the Paris Agreement objectives will require an 85% share of renewable energy in total electricity generation by 2050, IRENA’s 2050 Roadmap estimates. By then, variable renewables would account for 60% of the total power generated globally.

Moving to a new phase where the massive but cost-effective scale-up of renewables power is crucial, the power sector transformation is strongly accelerated by innovation trends in digitalization, decentralization and electrification of the end-use sectors.

Understanding and learning from the experiences from leading countries in variable renewable energy (VRE) integration is crucial to replicate and enhance innovation that can accelerate this transformation.

IRENA’s new report provides a clear, navigable and comprehensive guide on innovations being piloted around the world, aiming to support informed decision-making by all countries to deploy low-cost renewables and accelerate the global energy transition further according to IRENA Director-General Adnan Z. Amin.

The new report identifies 30 key innovations and 11 innovative solutions in development by pioneering companies and backed by far-sighted governments around the world. By showcasing many examples of projects and pilots for the power sector transformation across the globe, it supports policy makers in adopting innovation frameworks built on the combination and synergies between innovative solutions. As a unique toolbox it will help decision makers to rethink their power systems and implement solutions that account for specific national circumstances.

Key Findings from the report:

  • Innovation accelerates a cost-effective global energy transformation.
  • Flexible power systems maximize benefits of the energy transformation. Innovation in power systems minimizes costs related to the acceleration of renewable energy.
  • There are abundant innovative solutions to integrate VRE in power systems. However, policy-makers must adopt an innovation framework based on a systematic approach that creates synergies between innovations in technology, business models, market design and system operation, resulting in flexibility solutions to ensure a cost-effective integration of VRE at large scale.
  • Power sector innovation trends i.e. digitalization, electrification and decentralization are ongoing trends that can further accelerate the power sector transformation.
  • IRENA assessed 30 innovation types, clustered in four dimensions: enabling technology (e.g. batteries, EV, blockchain), business model (e.g. energy-as-a-service, aggregators), market design (e.g. time-of-use tariffs) and system operation (e.g. empowerment of DSO) in the report.
  • IRENA estimates that if some flexibility options are implemented, investments necessary for the integration of a high share of VRE may sum up to 18 trillion USD from today to 2050 – corresponding to the total investments required in additional renewable energy generation technologies.
  • EU28 has been leading in VRE integration, with close to 15% of VRE share in annual electricity generation today, expected to increase to almost 50% by 2050. The three largest power systems in the world – China, India and the United States are expected to double their share of VRE to more than 10% of annual generation by 2022.

Author : Bryan Groenendaal

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