While no “one-size-fits-all” solution exists, systemic innovation can transform the future of energy systems, a new report by the International Renewable Energy Agency (IRENA) finds.
Released during a Ministerial Dialogue on the role of Artificial Intelligence (AI) at IRENA’s Assembly, the “Innovation Landscape for Sustainable Development Powered by Renewables” report shows that transformation happens when technological innovation is woven with innovation in policy, regulation, market design, system operation, and business models.
The report spotlights 40 innovations, from AI and digital applications to solutions for modernising grids through smarter planning and off-grid solutions, as well as new business models.
It concludes that a systemic, integrated approach can deliver resilient power systems, broaden energy access, ensure affordability, and realise the full promise of the energy transition.
The report is the third in the series of Innovation Landscape reports by IRENA, highlighting emerging solutions to enhance the impact of renewables across energy systems and economies globally.
The question isn’t whether we can transform our energy system; it’s whether we will seize the moment to do it in a holistic way, benefiting all. The energy transition is not only about the availability of technology, but also about solutions that deliver social justice. With today’s report, we call for a systemic innovation approach and guide policymakers with a toolkit to formulate tailored solutions, said Francesco La Camera, Director-General of IRENA.
Renewable technologies are the cheapest source of electricity in most regions. The combination of cost-competitive renewables and the decentralised nature of many innovations puts universal access to electricity and resilience of power systems within reach for a just transition and economic development in emerging markets and developing economies.
Optimal strategies and the implementation of innovations will require system-specific attributes, including the technical and economic aspects of a national power system, grid integration, end-use sectors in the economy, resources available, and social and cultural dimensions.
Already being applied
Systemic innovations are already being tested globally, and, when properly applied and scaled in a tailored way, can drive sustainable development, the report shows.
In Tanzania, Kenya, Colombia, and Malaysia, for example, residents of energy communities collectively own and benefit from local renewable projects.
Regional power pools in West Africa enable 15 countries to share renewable resources across borders.
Dynamic line rating in Malaysia increases transmission capacity by 10-50 percent through real-time weather monitoring.
Battery swapping stations in Uganda and Rwanda make electric mobility accessible, whereas pay-as-you-go (PAYGO) business models have brought affordable electricity to over 500,000 people in Sierra Leone and Liberia.
To make the 40 innovations identified actionable and immediately applicable for policymakers, innovations are clustered into four strategic toolkits for context-specific solutions of grid modernisation, decentralised solutions, inclusive local development, and energy access.
However, the report notes that action is needed at every level, from multilateral institutions and regional forums to national governments and local communities.
This cohesive framework by IRENA intends to enable the design of tailored solutions reflecting the unique technical, economic, and socio-cultural needs of different circumstances in the countries, regions, and communities.
