Ofgem has launched a global initiative, together with the International Energy Agency (IEA), the International Renewable Energy Agency (IRENA), and the World Bank, to accelerate the energy transition to provide clean, secure, and affordable supplies to everyone.
The world quickly needs to find cleaner ways to generate electricity, heat and cool homes, and power transport and industry to support global climate goals.
Developing energy systems
Energy regulators have a significant role to play in turning ambition into real-world action to do this. The Regulatory Accelerator will enable them to collaborate to seize opportunities and solve problems to speed up the global energy transition at the lowest cost.
In particular, it can help countries with less developed energy systems to leapfrog the carbon-intensive paths other countries have previously taken.
clean, secure energy systems
The Accelerator will help regulators to learn from each other’s experiences and develop new approaches"
Jonathan Brearley, Chief Executive of Ofgem, said, “Climate change is a global problem and we need global solutions to the challenges we share as we build clean, secure energy systems to deliver our Paris climate commitments."
He adds, “The Accelerator will help regulators to learn from each other’s experiences and develop new approaches for the systems of the future. We are keen to see as many regulators as possible join the accelerator, particularly those from developing countries."
flexible energy systems
Jonathan Brearley continues, “We must think entirely differently to power the global economy without fossil fuels. The future for all of us lies in flexible energy systems powered by clean electricity, paid for fairly. In the long term, this will better shield consumers from commodity price shocks as well as protect the planet we all share.”
Around 20 regulators covering every continent have already committed to participating in the Accelerator. More are expected to follow after the COP26 climate summit in Glasgow. The UK government has committed to providing seed funding to support the Accelerator for the first year.
challenge regulators
Common challenges regulators around the world must address include the following:
- Meeting rising electricity demand, for example as more transport is electrified, by planning and building new networks at the lowest cost.
- Supporting a rapid increase in renewable power, including through greater system flexibility and interconnection of energy networks across borders.
The Accelerator will ensure that relevant knowledge and expertise from the World Bank, the IEA, and IRENA as well as NGOs specializing in assisting regulators are brought into its work program.
Overcoming decarbonization and electrification challenges
IRENA’s World Energy Transitions Outlook sees electricity becoming the main energy carrier"
Francesco La Camera, Director-General of IRENA, said, “IRENA’s World Energy Transitions Outlook sees electricity becoming the main energy carrier of the future, with renewables providing 90 percent of total global power by 2050."
Francesco La Camera adds, "This initiative will help overcome the challenges in power sector decarbonization and electrification of end-use and will support energy regulators across the world in the management of an accelerated energy transition.”
Setting up best practices
Fatih Birol, Executive Director of the IEA, said, “The IEA is proud to be part of the Regulatory Energy Transition Accelerator and looks forward to bringing its long-standing experience and expertise to the table."
Fatih Birol adds, "Regulators worldwide have a unique role in developing the clean, affordable and secure energy systems of the future. Through collaboration and sharing best practices, this initiative can help step up the pace of change, which will be crucial to achieving global climate goals.”
clean energy transition
Demetrios Papathanasiou, World Bank Global Director for Energy and Extractives, said, “The World Bank is committed to accelerating the clean energy transition and we’re proud to work towards this change together with Ofgem, the IEA, and IRENA, through the Regulatory Accelerator."
Demetrios Papathanasiou adds. "This global initiative will equip energy regulators with the knowledge and solutions they need to build clean, affordable, and reliable energy systems for consumers worldwide, reduce greenhouse gas emissions, and support global climate goals."