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A Landmark Report from the Energy Transitions Commission

On July 29, 2025, the Energy Transitions Commission (ETC) released an influential report titled "Power Systems Transformation: Delivering Competitive, Resilient Electricity in High-Renewable Systems." This extensive report sheds light on how global electricity systems dominated by wind and solar power can provide reliable electricity at costs that are competitive, or even lower, than those of conventional fossil fuel systems prevalent today.

The Shift in Electricity Consumption

A striking conclusion from the report is the potential transformation of global electricity consumption. It indicates that electricity could account for up to 70% of the world’s final energy consumption in a decarbonized energy system, a significant increase from the current 20%. The anticipated total global electricity demand could triple, reaching 90,000 TWh by 2050, primarily driven by new production from wind and solar sources.

Global Opportunities in Energy Transition

The report identifies an exciting opportunity for multiple regions to leverage energy systems with more than 70% of electricity generated from wind and solar. Utilizing proven technologies such as battery storage and flexible energy usage can help achieve this goal. For instance:

• - Solar Belt Countries: Countries like India, Mexico, and large parts of Africa are in prime positions to lower their power network costs through affordable solar systems, ensuring effective balancing between day and night.
• - Wind Belt Countries: In contrast, nations such as the UK, Germany, and Canada, which rely heavily on wind energy, may incur higher balancing costs. However, through smart policies and innovative approaches, they can establish stable and affordable systems.

Long-distance transmission lines stand out as a promising solution to balance supply and demand effectively in various regions, and their maximizing utilization is strongly recommended.

Rapid Electrification and Decarbonization

To maintain accessible kilowatt-hour costs for consumers and businesses, rapid electrification of buildings, transport, and industries must advance alongside the decarbonization of electricity networks. According to Adair Turner, chairman of the ETC, while technologies like nuclear and geothermal can contribute to zero-carbon electric systems, wind and solar will likely be the primary energy sources providing 70% or more of electricity at competitive rates with fossil fuel systems.

The substantial drop in costs for solar photovoltaics and storage technologies within the Solar Belt countries marks the feasibility of faster and less expensive growth in green electricity supply than previously anticipated.

Key Findings and Recommendations

The report highlights several pivotal conclusions:
1. Technical Stability: Systems dominated by wind and solar power are capable of being stable and resilient with the right combination of balancing technologies and networks.
2. Cost Dynamics: The competitiveness of wind and solar energy systems is promising, with Solar Belt countries projected to see costs dip to $30-$40 per MWh by 2050. Although countries that rely more on wind may experience higher costs, they can still attain comparable prices.
3. Demand-side Flexibility: Up to 30% of the global electricity demand could be shifted through demand-side flexibility, necessitating dynamic pricing strategies and intelligent management technologies.
4. Network Expansion: To meet future demands, the global power network will need to significantly expand, potentially more than doubling to 150-200 million kilometers by 2050, thereby requiring extensive upfront investments.
5. Strategic Planning: Establishing low-cost, variable renewable energy systems will require a vision for strategic planning, policy reform, modernization of networks, supply chain development, and customer engagement.

Christiana Figueres from Global Optimism emphasizes that clean electricity is crucial for climate action and is the most cost-effective way to fuel economic development. She calls on countries to make immediate investments in renewable energy sources.

Collaboration for a Cleaner Energy Future

For a successful transition to renewable energy, collaboration among policymakers, energy sectors, and financial institutions is crucial. This partnership should focus on:

• - Efficient planning for high-capacity wind and solar systems to speed up development approvals.
• - Tracking electrification demand alongside production and network advancements.
• - Accelerating electricity market reforms to unlock essential investments in technologies.
• - Mitigating workforce and supply chain bottlenecks to facilitate widespread delivery.

Overall, the ETC report underscores the necessity for renewable energy to be at the heart of the global energy transition. As clean and economic energy solutions arise, the trajectory towards competitive, resilient energy systems becomes increasingly realistic, fostering employment and economic progress.