Collaborative Framework on Enhancing Dialogue on High Shares of Renewables in Energy Systems: Modernizing and Expanding Physical Energy Infrastructure

The world has seen a 14% growth in renewable energy capacity in 2023, marking renewables as the fastest-growing electricity source. However, this progress falls short of the COP28 pledge to triple renewable power generation by 2030. To achieve the target of 11.2 terawatts of renewables by 2030, the reliable integration of renewable sources into the power grid becomes more vital. Accommodating higher shares of variable renewable energy (VRE), such as wind and solar, will require the modernization of existing power infrastructure. IRENA identifies lagging infrastructure and inefficiencies in power grids as key barriers to accelerating the renewable energy transition.

The World Energy Transitions Outlook (WETO 2023) identified physical infrastructure as a key pillar of the transition and a prerequisite for greater renewable energy penetration. Upgrading, modernizing, and expanding physical infrastructure will enhance resilience and flexibility within a diversified and interconnected energy system. Grid reinforcements, storage capacities, digitalisation and smart solutions need to pick up their pace to foster VRE deployment.

Achieving these goals requires capital-intensive investments. Approximately USD 720 billion annually must be invested until 2030 to grids, electricity storage, demand-side management and other supply-side flexibility options. To support these investments, countries should consider providing incentives for infrastructure investments, streamlining permitting processes for large-scale infrastructure, and mobilizing public finance. Furthermore, WETO 2023 emphasizes infrastructure investment in grids, land, and sea routes, evolving policy frameworks, and realigning capacities for future energy needs. Key considerations include project locations, impacts, beneficiaries, costs, and asset ownership.

By invitation only.

For more information contact cfhighsharesre@irena.org.