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The Value of Demand Flexibility
Benefits beyond balancing This policy brief, developed under the International Energy Agency’s Digital Demand-Driven Electricity Networks (3DEN) Initiative, examines the value of demand flexibility as a core component of modern electricity systems, with a strong emphasis on its role in improving energy efficiency. As electricity demand grows and power systems become more electrified, decentralised and renewable-rich, managing when and how electricity is used is increasingly as important as expanding supply.The brief sets out a clear framework for understanding demand flexibility and highlights its contribution to an efficiency-first approach to power system planning and operation. By…
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Overview graphic: key technology trends for EVs
GEVO 2026 - Chapter 8 Electric vehicles (EVs) are increasingly at the centre of innovation in the automotive sector, bringing advances that extend far beyond developments in batteries and power electronics, thanks to several mutually reinforcing factors. Key technology trends are aligning in favour of EVs Battery electric vehicles (BEVs) are mechanically simpler than internal combustion engine vehicles (ICEVs) or hybrids, making them more compatible with digitalisation and automation. The relative simplicity of electric drivetrains enables shorter development cycles for new vehicles, allowing emerging technologies to reach BEVs sooner than vehicles with other powertrains.While the transition from mechanical to software…
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Scaling Up Demand Flexibility
From peak management to efficient system operation This report has been developed as part of the International Energy Agency (IEA) Digital Demand-Driven Electricity Networks (3DEN) initiative to examine the growing importance of demand flexibility in electricity systems amid rising demand, increased renewable energy integration and the electrification of power systems. Case studies in chronological order to examine the changing role of demand flexibility over time from South Africa (2025), Thailand (2030) and Ireland (2035) demonstrate how demand flexibility improves reliability, reduces costs, supports renewables integration and manages network constraints. To realise these benefits, the report emphasises the role for…
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Energy security
Multiple benefits of Energy Efficiency 2025 Energy efficiency provides multiple benefits. This page explores energy security. Why is energy efficiency important for energy security? Energy efficiency can help mitigate energy security risks by reducing the reliance on fossil fuel imports, improving grid reliability, and acting as a buffer to supply shocks. Key facts Efficiency gains from the last two decades avoided the need for 20% more fossil fuel imports in IEA countries. Energy efficiency and demand response can support grid reliability by reducing peak demand. For instance, more efficient air conditioners in India could lower the impact of heatwaves on…
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Financing the ASEAN Power Grid
The Association of Southeast Asian Nations (ASEAN) has a long history of electricity system connectivity, and the development of the ASEAN Power Grid (APG) is central to achieving a sustainable, secure and affordable energy transition across the region. Delivering the APG will require a significant step‑change in investment over the coming 15 years, and unlocking financing from a diverse range of sources will be essential for this to happen. Yet financing approaches and business models have not evolved at the pace required to support an increasingly ambitious and complex pipeline of interconnector projects.This report examines how interconnectors are approached…
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Integrating Solar and Wind in Southeast Asia
Status and outlook for secure and efficient strategies Southeast Asia is experiencing one of the fastest electricity demand growths globally, with consumption set to double by 2050. While renewable deployment has accelerated in recent years, the region’s growing reliance on imported fossil-fuels for electricity generation, exposes countries to volatile fuel prices, potential supply disruptions and rising emissions. At the same time, the region possesses vast and diverse renewable resource potential. Variable renewable energy (VRE) - solar and wind - are now among the most cost-competitive generation options and are playing an increasingly important role in the region’s power…
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Integrating Variable Renewable Energy in Kenya
Key challenges and strategic priorities Building on its renewable energy success, Kenya is now focused on managing a secure and reliable electricity system. With nearly 90% of the generation mix derived from renewable sources and electricity access rising from 37% in 2013 to 79% in 2025, the country has established itself as a regional leader in energy development.Integrating Variable Renewable Energy in Kenya explores how Kenya can strengthen its power system amid rising shares of variable renewable energy (VRE). The report identifies Kenya’s system to be operating in Phase 3 of the IEA’s VRE integration framework, where…
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Efficient Grid-Interactive Buildings in India
Status and opportunities This report assesses the opportunities for efficient grid-interactive buildings (EGIBs) to support India’s clean energy transition. EGIBs unite energy efficiency, smart digital technologies and demand-side flexibility, allowing them to optimise energy use, shift or reduce peak demand and better align consumption with renewable energy generation.The buildings sector is central to clean energy transitions in a context where rapidly increasing electricity demand is driven by cooling and appliance use, and the share of variable renewable energy in electricity generation is continuously growing. Without targeted action, unmanaged peak loads and variable supply could jeopardise grid…
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China’s Official Energy Finance in Emerging and Developing Economies
Evolving institutions, instruments and implications for clean energy transitions Global energy investment exceeded USD 3.3 trillion in 2025, but capital flows remain uneven. Emerging market and developing economies (EMDE) outside China attracted just 27% of total energy investment and 18% of clean energy spending, despite accounting for nearly two-thirds of the global population and the bulk of future demand. Addressing this imbalance requires mobilising more capital from diverse sources into EMDE energy systems.China continues to play a central role in global energy investment flows because of its large domestic investments and its large external capital spending on energy. Since…
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Key Questions on Energy and AI
Following the publication of the IEA’s landmark Energy and AI report in 2025, this report examines how the energy and AI nexus has evolved amid surging investment in data centres and rapid advances in model capabilities. Drawing on fresh datasets and analysis, it explores where electricity demand is rising, how quickly grids and supply chains can respond, and what these shifts mean for energy security, affordability and sustainability.
