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Electricity Market Design
Building on strengths, addressing gaps Electricity markets play a central role in balancing supply and demand, guiding operational decisions and shaping investment outcomes. As systems change with higher shares of variable generation, greater decentralisation and evolving patterns of electricity use, the ability of market designs to deliver secure and affordable electricity has never been more critical. If market arrangements do not keep pace with these developments, the functioning of electricity systems could become more uncertain and more costly.This report provides a cross-regional assessment of how wholesale electricity markets and their complementary policy mechanisms are performing today. We find…
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Land-Use Competition between Biodiversity and Net Zero Goals
A case study of Canada Meeting global targets for energy, climate, and biodiversity conservation has major implications for land use. To ensure that the tripling of renewable energy capacity by 2030 aligns with the goal of protecting 30% of the planet’s land and water by the same date, robust mechanisms that direct solar and wind projects away from the world’s most biodiverse areas are needed. To address the potential impacts of renewable development on biodiversity, the IEA developed the Renewable Energy and Land-Use Model (REALM), which identifies areas of overlap between renewable projects, critical mineral mining, and…
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Powering Ireland’s Energy Future
Approaches for a secure, renewables-led electricity system to 2035 Ireland has emerged as a frontrunner in integrating wind power, which supplied around a third of its electricity in 2024. As this power system transformation continues, electricity is set to be the backbone for achieving Ireland’s climate, energy and socio-economic ambitions, making electricity security critical to realising progress in key areas including housing, digital infrastructure, transport and heat. Going forward, Ireland faces strategic choices on how to align its ambitions while ensuring secure electricity supply to 2035.This report assesses the outlook for Ireland’s energy security to…
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Kenya 2024
Energy Policy Review Government action is pivotal in building secure, inclusive and sustainable energy systems. Energy policy is critical not just for the energy sector but also for meeting environmental, economic and social goals. Governments need to respond to national specific needs, adapt to regional contexts, and help address global challenges. In this context, the International Energy Agency (IEA) conducts Energy Policy Reviews to support governments in developing more impactful energy and climate policies.This Energy Policy Review of Kenya was prepared in collaboration between the government of Kenya and the IEA, whose strong partnership achieved an important milestone in…
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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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IEA Guide to Reporting Energy Technology RD&D Budgets
This manual, developed by the International Energy Agency (IEA), provides comprehensive guidance for national experts responsible for reporting energy technology research, development, and demonstration (RD&D) budgets. It outlines the methodology and classification system used to collect and structure RD&D data across IEA member countries, ensuring consistency and comparability. The manual is divided into two main sections: fundamentals of RD&D budget reporting and a detailed classification of energy technologies. It defines RD&D in alignment with the OECD Frascati Manual and clarifies the scope of public and private sector reporting. It also provides instructions for completing the IEA…
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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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Grid investments
Multiple benefits of Energy Efficiency 2025 Energy efficiency provides multiple benefits. This page explores grid investments. Why is energy efficiency important for grid investments? As we enter the Age of Electricity, global electricity demand is rising rapidly – and so is the demand for the expansion of electricity grids. Energy efficiency can help close the gap between supply and demand, but often at a lower cost, and more quickly, than new generation and grid expansion. Key facts On average, energy efficiency costs less than half the amount it would cost to build new generation capacity and grid infrastructure, per unit of…
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Indicators Handbook for Just and Inclusive Energy Transitions
Global Commission on People-Centred Clean Energy Transitions: Designing for Fairness The Indicators Handbook is based on the voluntary G20 Principles for Just and Inclusive Transitions, endorsed by G20 leaders in November 2024. The principles, which reflect varying perspectives, contexts and experiences, form a framework for approaching transitions that maximises benefits and mitigates the risk of unintended consequences. Designed as a technical resource, the Indicators Handbook provides guidance for governments and other stakeholders on identifying relevant indicators as a first step towards tracking policy design and implementation in line with the G20 Principles for Just and Inclusive Transitions. The Handbook…
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National Climate Resilience Assessment for Mozambique
Mozambique’s energy system has experienced significant disruptions due to extreme weather events, notably tropical storms and cyclones. With climate change, storms are projected to intensify, as are the risks of seasonal droughts and floods, posing a threat to the reliable operation of hydropower generation and the secure operation of the country’s coal mines. Mozambique’s plans to diversify its energy supply are an important step to enhance energy security and could be complemented by targeted measures to make its electricity system more resilient to natural hazards. Storms and tropical cyclones present the most regular extreme weather event faced…