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Energy and AI AI for energy optimisation and innovation
…systems owing to the complexity of supply, transmission and demand profiles. In the Widespread Adoption Case, the application of AI in power plant operations and maintenance yields potential cost savings of up to USD 110 billion annually by 2035 from avoided fuels and lower costs. AI also enables greater integration of renewable electricity into the grid. Our analysis finds that up to 175 GW of additional transmission capacity could be unlocked in existing lines with the use of AI. The applications of AI in end-use sectors are varied but have significant potential. In industry, AI is being used in various ways…
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Policy options to accelerate distributed solar PV in Ukraine Policy options and implications
Overview of policy instruments for distributed solar PV deployment Globally, government policies and incentives have been the main driver for distributed PV deployment. These instruments can be differentiated between 1) policies targeting investment costs and 2) policies focusing on consumption and the sale of electricity.Policies targeting investment costs usually take the form of direct financial incentives that aim to reduce initial investment costs and make distributed PV systems more affordable for consumers. They include:Grants and rebates: a fixed subsidy, usually with a one-time payment.Tax credits: amounts taxpayers can subtract from taxes, usually based on a percentage…
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Financing Electricity Access in Africa Pathway to universal access
…scaling electricity access spending. Without equity, companies are forced to find less well-adapted financing solutions, relying on results-based finance or debt financing. This inhibits the creation of a pipeline of bankable projects and prevents companies from being able to scale up. Increasing patient equity, primarily from concessional finance providers, will be crucial.To support the private financing of decentralised solutions, new solutions are emerging in recent years and include off-balance sheet financing via securitisation, the development of energy-as-a-service models for households with low incomes, the use of green bonds for mini-grids and crowdfunding.
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Global EV Outlook 2026 Manufacturing and trade
Manufacturing and trade of electric cars Global electric car output reached record levels in 2025 while European production rebounded Nearly 22 million electric cars were produced globally in 2025 – up more than 25% compared to the previous year. Of those, about one-quarter were traded between major production and demand centres. China remains the world’s largest hub for manufacturing and trade of electric cars, capturing nearly 75% and 40% of the respective global totals. Primarily led by domestic carmakers, China’s 2025 production of 16 million electric cars outstripped domestic demand by 20%, pushing Chinese electric car exports to double to…
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Electricity Market Design Executive summary
Electricity systems are changing fast, and market design must evolve with them Electricity systems are undergoing rapid structural change, increasing the need for market frameworks that keep pace with evolving operational and investment requirements and possibilities. Electricity is central to modern economies, and its role is expanding as consumption patterns shift, digitalisation accelerates, energy systems decentralise, and variable resources grow. Across major regions, these trends are increasing the complexity of real-time operations and reshaping investment dynamics. Short-term and seasonal flexibility needs are projected to grow faster than demand over the next decade, while electrification in many sectors is…
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Pledges to Progress 2025 Summary of results
…The Turning Pledges into Progress framework contains a total of 25 metrics in three categories: 1) target setting (“Targets”), 2) strategies for implementation (“Strategies”), and 3) disclosure and reporting (“Disclosure”). Target setting comprises six metrics related to emissions reductions and investment in clean energy. All the signatories to the Oil and Gas Decarbonization Charter (OGDC) are assumed to have the aim of achieving these targets. Strategies for implementation comprise eight metrics that describe steps companies can take to achieve these targets; and disclosure and reporting comprises 11 metrics allowing stakeholders to assess how companies publicly report information relevant to achieving the OGDC goals…
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Sheltering From Oil Shocks Introduction and context
The conflict in the Middle East has created the largest supply disruption in the history of the global oil market. The volume of fuel supply offline now is higher than the supply loss during the oil shock of 1973 that led to the IEA’s creation and any disruption since then. Beyond the direct damage to energy infrastructure in the region, the crisis has led to a near halt in tanker movements through the Strait of Hormuz. Crude and oil product flows through the Strait have fallen from around 20 million barrels per day (mb/d) before the conflict to…
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China’s Official Energy Finance in Emerging and Developing Economies Case studies
…scale renewable deployment and grid modernisation to industrial decarbonisation, equity participation in regional infrastructure platforms and upstream resource development. Together, they show how different parts of China’s official financing system interact with local conditions, how technical capabilities are deployed across markets, and how risk-mitigation tools, co-investment structures and SOE balance-sheets shape outcomes on the ground.These case studies also demonstrate that China’s overseas energy engagement is not merely a response to market opportunities, but also an interaction with host countries’ conditions. These financing practices typically align with host governments’ national targets such as expanding renewable…
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Global Energy and Climate Model Stated Policies Scenario (STEPS)
The Stated Policies Scenario (STEPS) has a long pedigree in the International Energy Agency (IEA) family of scenarios. It was introduced in 2019 with this name, but it has much in common with the previous New Policies Scenario that dates back to the 2010 edition of the World Energy Outlook (WEO). The intention of this scenario is to reflect the prevailing direction of travel for the energy system based on a detailed reading of the latest policy settings in countries around the world. It takes into account specific energy, climate and related industrial policies that have been adopted or put…
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Global Critical Minerals Outlook 2025 Beyond NMC batteries: Supply chain issues for emerging battery technologies
…chains.The LFP battery supply chain is significantly more concentrated in China compared to nickel-based supply chains, with over 98% of LFP cathode material and LFP battery cells produced in China, compared to less than two-thirds of nickel-based cathode material and 60% of nickel-based battery cells. China holds significant advantages in LFP production: access to low-cost raw materials from its highly integrated supply chain, cheaper and higher efficiency LFP production equipment and machinery with lower lead times, and finally, holding considerable LFP patents. Phosphoric acid and manganese sulphate are becoming increasingly important as they face…
