Electricity Grids and Secure Energy Transitions

Electricity Gridsand Secure EnergyTransitions Enhancing the foundations of resilient,sustainable and affordable power systems INTERNATIONAL ENERGYAGENCY The IEA examines thefull spectrumof energy issuesincluding oil, gas andcoal supply anddemand, renewableenergy technologies,electricity markets,energy efficiency,access to energy,demand sidemanagement andmuch more. Throughits work, the IEAadvocates policies thatwill enhance thereliability, affordabilityand sustainability ofenergy in its31member countries,13associationcountries and beyond. IEA membercountries: IEA associationcountries: AustraliaAustriaBelgiumCanadaCzech RepublicDenmarkEstoniaFinlandFranceGermanyGreeceHungaryIrelandItalyJapanKoreaLithuaniaLuxembourgMexicoNetherlandsNew ZealandNorwayPolandPortugalSlovak RepublicSpainSwedenSwitzerlandRepublic of TürkiyeUnited KingdomUnited States ArgentinaBrazilChinaEgyptIndiaIndonesiaKenyaMoroccoSenegalSingaporeSouth AfricaThailandUkraine This publication and anymap included herein arewithout prejudice to thestatus of or sovereignty overany territory, to thedelimitation of internationalfrontiers and boundaries andto the name of any territory,city or area. The EuropeanCommission alsoparticipates in thework of the IEA Revised version, November2023Information notice found at:www.iea.org/corrections Source: IEA.International Energy AgencyWebsite: www.iea.org Abstract Grids have been the backbone of electricity systems for more than a century,underpinning economic activity by bringing power to homes, industry and services.As clean energy transitions advance, the role of electricity will be more prominent,making grids even more important for society and economies. Electrification andrenewables deployment are both picking up pace, but without adequate grids toconnect the new electricity supply with the demand, there is a risk that cleanenergy transitions will stall. This report offers a global stocktake of the world’s electricity grids as they standtoday, taking a detailed look at grid infrastructure, connection queues, the cost ofoutages,grid congestion,generation curtailment,and timelines for griddevelopment. We find that there are already signs today that grids are becominga bottleneck to clean energy transitions and analyse the risks we face if griddevelopment and reform do not advance fast enough. We find that delayed action means prolonging reliance on fossil fuels, resulting inan increase in emissions and costs to society. An unprecedented level of attentionfrom policy makers and business leaders is needed to ensure grids support cleanenergy transitions and maintain electricity security. The report concludes with keyrecommendations for policy makers, highlighting the necessary actions in areasincluding investment, regulation and planning. Acknowledgements, contributorsand credits This study was prepared by the Renewable Integration and Secure Electricity(RISE) Unit in the Directorate of Energy Markets and Security (EMS) in co‐operation with other directorates and offices of the International Energy Agency(IEA). The study was designed and directed by Pablo Hevia-Koch, Head of RISE.Main authors are Pablo Hevia-Koch, Brent Wanner, Head of Power Sector Unit,and Rena Kuwahata, Energy Analyst Power System Transformation. The electricity grid modelling team for this report was led by Brent Wanner andadditional analysis was led by Rena Kuwahata. Zoe Hungerford was also part ofthe core team and contributed across the report. Key contributions were from ErenÇam (outages), Javier Jorquera Copier (congestion management and outages),Trevor Criswell (connection queues), Michael Drtil (transmission and permitting),StavroulaEvangelopoulou(supply chain),Eric Fabozzi(modelling),EnriqueGutierrez(regulation),Bruno Idini(employment),Laura Mari Martinez(curtailment), Alessio Pastore (regulation and distribution), and Alana RawlinsBilbao (investment). Other contributions from across the agency were from: HeymiBahar(connection queues and curtailment),Daniel Crow,MinnaGenser(cyber security), Julia Guyon (electricity demand and electric vehicles),KatsukiIshimaki(cyber security),John Moloney(outages),Yu Nagatomi(planning and investment policies),Camille Paillard(public acceptance andpermitting),Uwe Remme(supply chains) and Daniel Wetzel (employment). Matthieu Coget, Jinpyung Kim, Hyejeong Lee, Jae Sun Lee, Jeremy Tessier,Lukas Trippe, and Zhiyu Yang provided essential support. Justin French-Brooks carried editorial responsibility. Other key contributors from across the IEA were: Rita Madeira, Jinsun Lim, AsthaGupta, Brendan Reidenbach, and Vida Rozite. Valuablecommentsandfeedbackwereprovidedbyotherseniormanagementand numerous other colleagues within the IEA.In particular,Keisuke Sadamori, Laura Cozzi and Tim Gould. Thanksgo to the IEA’s Communications and Digital Office for their helpinproducing the report and website materials, particularly to Jethro Mullen,and Oliver Joy. Poeli Bojorquez, Astrid Dumond, Grace