EmpoweringUrbanEnergyTransitions Smartcitiesandsmartgrids INTERNATIONALENERGYAGENCY TheIEAexaminesthefullspectrum ofenergyissuesincludingoil,gasandcoalsupplyanddemand,renewableenergytechnologies,electricitymarkets,energyefficiency,accesstoenergy,demandsidemanagementandmuchmore.Throughitswork,theIEAadvocatespoliciesthatwillenhancethereliability,affordabilityandsustainabilityofenergyinits 31membercountries, 13associationcountriesandbeyond. Thispublicationandanymapincludedhereinarewithoutprejudicetothestatusoforsovereigntyoveranyterritory,tothedelimitationofinternationalfrontiersandboundariesandtothenameofanyterritory,cityorarea. Source:IEA. InternationalEnergyAgencyWebsite:www.iea.org IEAmembercountries: AustraliaAustriaBelgiumCanada CzechRepublicDenmarkEstonia FinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuania LuxembourgMexicoNetherlandsNewZealandNorwayPolandPortugal SlovakRepublicSpain SwedenSwitzerlandRepublicofTürkiyeUnitedKingdomUnitedStates TheEuropeanCommissionalsoparticipatesintheworkoftheIEA IEAassociationcountries: ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingapore SouthAfricaThailandUkraine IEA.CCBY4.0. Abstract InthecontextoftherecentagreementatCOP28inDubaiandthecurrentstateofplayofurbanpowersystems–fromG7countriestoemergingmarketsanddevelopingeconomies–thisreportanalysesthestepsneededtoachievenetzeroemissionsfromelectricity,andconsidersthewiderimplicationsforenergysecurity,sustainabilityandaffordability. Thedecarbonisationofcitiesisaglobalpriority,andlocalgovernmentsareinstrumentalinachievingnationalcommitmentsandobjectives.Improvedaccesstoanduseofdatafordecisionmakingcansupportfasterandmoretargetedimplementationandhelpaligncityandpowersystemplanning.Digitalsolutionsandsystemscanbeparticularlypowerfulincities,wherehigh-densityenvironmentscreateeconomiesofscaleandcanoptimiseinfrastructureandcreatenewopportunities.Exploringawiderangeofprojectsandinitiativesimplementedinpowersystemsandcitiesaroundtheworld,thereportprovidesinsightsonemergingbestpractices,innovativeapproachesandhowbarriersandchallengescanbetackled.Ourfocusisonwaysnationalgovernmentscanhelpcitiesaccelerateclean,affordableandinclusiveenergytransitions,andensureresilienceandanabilitytoadapttoclimatechange. ThereportalsounderscoreshowG7memberscanfosterinnovationthroughinternationalcollaboration,creatingenablingenvironmentsatthecityleveltodeployscalablepilotprojects,supportintegratedplanningandpromotedatasharing,allwhilemaintainingelectricitysecurityandplacingpeopleatthecentreofcleanenergytransitions. Tableofcontents Abstract3 Acknowledgements,contributors,andcredits6 Executivesummary10 Globalagreementforrenewedmomentumtoimplementcleanenergytransitions10 Citiesascatalystsforchange10 Citiesfosteringinnovativeandcost-effectivepeople-centredsolutions11 Matchingurbangrowthwithincreasedambitionforinclusivecleanenergytransitions11 Powergridsfeeltheheatasclimatechangebeginstotakeeffect12 Modernisingandexpandingpowergridsforsustainableurbanenergyfutures12 Thepowerofdigital-drivenintegratedplanning13 Internationalcollaborationisessentialtoaddressglobalchallenges14 Chapter1:Urbanenergyrevolutions15 Keytakeaways15 Internationalclimategoals15 Citiesandtheclimate16 Opportunitiesforsustainableenergytransitionsincities19 Theroleofgridsinurbanenergytransitions22 Chapter2:Citiesandgridsonaheatingplanet29 Keytakeaways29 Impactsofachangingclimateandenergysystem29 Activatingflexibilityincities36 Chapter3:Communityattheheartofthecity45 Keytakeaways45 Communityenergyprojects45 Examplesofcommunity-focusedapproachesforinclusiveenergytransitionsincities47 Bestpracticetosupportinclusivelocalenergy51 Chapter4:Systemicapproachesforasustainableurbanenergyfuture54 Keytakeaways54 Thecaseforchangeinurbanenergyplanning54 Thebenefitsandchallengesofmoredata58 Connectingthedots:Overcominginteroperabilitychallengestosupportcleanenergytransitions62 Smart,integratedinfrastructureinvestmentplanning68 IEA.CCBY4.0. Usingsoundframeworksfordata-drivenurbanplanning71 IEA.CCBY4.0. Chapter5:Creatingtheconditionsforimplementingsmarterurbanenergysystems74 Keytakeaways74 Thechallengesfacingsmartcities74 Navigatingregulatorychallengesinenergyinnovation75 Developingdigitalskillsandcapacityforsmarturbanenergysystems78 Strategiesandsolutionsforfinancingurbanenergyinnovation81 Chapter6:Newapproachestopilotsandexperimentationforlarge-scaleimplementation85 Keytakeaways85 Chapter7:Conclusions90 Placingpeopleatthecentre,buildingforthefuture90 Supportingdata-drivenintegratedplanning91 Creatingasupportiveenvironment92 Fosteringinternationalco-operation93 PotentialinternationalactionsspearheadedbyG7countries94 Acknowledgements,contributors,andcredits ThisstudywascommissionedbytheItaliangovernment’sPresidencyoftheG7. TheIEAgratefullyacknowledgestheItalianMinistryofEnvironmentandEnergySecurityforitssupportofthisprojectaspartofitscontributionstotheIEA’sDigitalDemandDrivenElectricityNetworksInitiative(3DEN)onelectricitygridmodernisationanddigitalisationandtotheCleanEne