2022-05-31-IRENA-RE-organising_Power_Systems_for_the_Transition_188页_12mb

Summary of IRENA Report: RE-Structuring Power Systems for the Transition

This IRENA report argues that power system organizational structures must evolve to support the energy transition to renewables, a challenge often overlooked amid focus on technology. Current structures, designed for fossil fuels, create misalignments like depressed electricity prices due to renewable deployment and capacity market failures, hindering progress despite technological advancements. The core solution is dual procurement, combining two pillars:

1. Long-term Renewable Energy (LT-RE) procurement (auctions, feed-in tariffs) to finance capital-intensive renewables.
2. Short-term Flexibility (ST-Flex) procurement (spot markets, demand-response) to balance supply-demand in real-time.

Dual procurement directly addresses renewable variability and market failures, fostering co-benefits like equity, job creation, and resilience. The evolution requires balancing competition, regulation, and collaboration, with divergence from current paths only if socio-economic frameworks align. Two pathways—liberalized markets and public ownership—share convergence points, emphasizing the need for improved governance and societal participation to ensure a "fair and just transition."

Key recommendations include:

• Reforms to auctions and retail markets to integrate distributed resources.
• Clear valuation of ecosystem services and labor dynamics to build resilience.
• Leveraging local content and minimizing stranded assets through anticipatory policies.

This holistic approach is urgent to align power systems with climate goals by 2050, supporting both technological and socio-economic transitions.