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Demand Response
Country and regional highlights
Notable progress to advance demand response is being made
Activity
Demand response markets are expanding, but greater effort is needed to align with the Net Zero Scenario
Technology deployment
Enabling technologies offer high flexibility potential, although deployment is still lagging
Innovation
Innovative solutions and approaches are being tested to expand residential participation in demand response
Policy
International collaboration
Acknowledgements
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Global Energy Review 2026 Technology: Battery storage
…is the fastest growing power technology today. In 2025, 108 GW of new battery storage capacity was deployed worldwide, 40% more than in 2024. Installed capacity is now eleven times higher than in 2021. Lithium‑iron phosphate (LFP) batteries now account for around 90% of deployments; while less energy‑dense than rival chemistries commonly used in EVs, LFP batteries are typically cheaper and better suited to more frequent cycling. Just five years ago, the market share of LFP batteries in deployments was well below 50%. Around 80% of new battery capacity in 2025 was utility‑scale. The remainder was behind-the-meter capacity…
- Key findings
- Global trends
- Oil
- Natural gas
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+ 9 pages
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Canada
Canada has set an ambitious target to cut greenhouse gas emissions by 40-45% from 2005 levels by 2030 and to reach net zero emissions by 2050. Canada’s energy and economic profile presents both challenges and opportunities to achieving these targets given its profile as a major producer, consumer and exporter of energy. Energy production and use in Canada accounts for over 80% of the country’s GHG emissions, with oil and gas production alone accounting for around a quarter. Canada’s electricity system is already among the cleanest in the world, with heavy dominance of hydropower as well…
- Overview
- Energy mix
- Emissions
- Electricity
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+ 5 pages
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Norway
Norway has set ambitious targets for reducing greenhouse gas emissions and establishing a low-emissions society by 2050. As an energy-rich country, Norway is in a unique starting position with respect to the energy transition. An abundance of affordable hydropower has enabled the development of energy-intensive industries and a high level of electrification of homes and businesses with limited greenhouse gas emissions. At the same time, as a major oil and gas producer and exporter, Norway will need to support an evolution of its energy sector amid the global energy transition. Altogether, Norway has the opportunity to lead…
- Overview
- Energy mix
- Emissions
- Electricity
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+ 5 pages
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Global Hydrogen Review 2025 Trade and infrastructure
…2035, but less than 6% have reached final investment decision (FID). Most projects are in Europe and China, where the world’s longest, largest-diameter hydrogen pipelines are currently being built. In Germany, work began on repurposing a 400 km section of a natural gas pipeline in 2025, in a world-first repurposing project of this scale.If all announced underground hydrogen storage projects are realised by 2035, around 11 TWh of capacity (325 kt H₂) will be available. However, only 5% has reached FID or is under construction, equivalent to 2.5% of the annual output from committed low-emissions hydrogen projects. Progress…
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Global Energy and Climate Model Accelerating Clean Cooking and Electricity Services Scenario (ACCESS)
Even as global energy demand continues to rise, billions of people in around 100 countries remain without access to basic modern energy services. Today nearly 2 billion people lack access to clean cooking and 730 million people lack access to electricity. Millions of households, businesses and public institutions such as clinics and schools operate without reliable modern energy. This limits productivity and hinders socioeconomic development. It also perpetuates the use of traditional biomass, with damaging consequences for health and the environment.The Accelerating Clean Cooking and Electricity Services Scenario (ACCESS) charts a path to achieve universal access to clean cooking and electricity based…
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Financing the Modernisation of Power Systems Beyond Coal
The role of transition credits in Southeast Asia Coal is a central component of power systems in Southeast Asia, even as governments have committed to reducing coal‑related emissions. Rapid electricity demand growth, alongside coal’s role in system adequacy, reliability and energy security, complicates efforts to accelerate coal transitions. Recent volatility in international gas markets has reinforced the short‑term economic and security value of existing coal assets, adding complexity to national transition strategies. The region’s young coal fleet also implies substantial long‑term emissions if plants continue operating at current utilisation rates.Against this backdrop, new approaches are being explored…
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Korea 2025 Executive summary
…and Green Growth acts as a climate policy council, advises the government on targets and policies, and reviews progress on mitigation and adaptation each year. In 2022, the government placed an emphasis on energy security and announced the introduction of nuclear power and other low-carbon energy sources. In 2025, a new organisation, the Ministry of Climate, Energy and Environment, was established underscoring the government’s commitment to a renewable energy–centred transition and comprehensive decarbonisation across all sectors.Korea sets out many of its climate and energy policy objectives in strategic plans, which are updated on a cyclical basis…
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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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State of Energy Policy 2026 Government energy spending
…Over the past five years, however, government spending on energy has doubled compared with 2019 levels, reaching around 1.4% of total direct government expenditure in 2025. Levels have varied by country, with some reaching up to 5% of general expenditure. Although spending fell from its peak in 2023, disbursements in 2024 and 2025 remained significantly higher than in the 2010s, reaching respectively around USD 370 billion and USD 405 billion. Other economic sectors saw more modest growth: spending on areas such as health and social protection rose broadly in line with general total expenditure, by around 1.4 times over the…
