Energy security depends on integrating renewable energies, says IEA

The rapid expansion of solar and wind power requires structural reforms to ensure their full integration into global power systems and avoid significant production losses.

Share:

illustration VRE

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The energy sector is undergoing a profound transformation.
Since 2018, global solar and wind power capacity has more than doubled, driven by supportive government policies and steadily falling costs.
These variable renewable energies (VRE) now play a key role in decarbonizing the electricity sector.
They account for a significant proportion of the greenhouse gas emission reductions needed to achieve global climate targets, notably carbon neutrality by 2050.
Indeed, they are responsible for two-thirds of the reductions in carbon dioxide (CO2) emissions in the power sector.
However, if these energy sources continue to grow at this rate without an adequate framework for integrating them into power grids, their potential could be severely limited.
A recent report by the International Energy Agency (IEA) points out that without immediate integration measures, electricity production from these sources could be 15% lower by 2030, reducing their share of the global energy mix.

The challenges of effective integration

Integrating ERVs poses considerable technical challenges, not least because of their intermittent nature.
Solar and wind power are weather-dependent, which means that electricity production can fluctuate wildly over the course of a day or season.
These variations impose a high degree of flexibility on power systems to maintain a balance between supply and demand in real time.
Countries with a low share of these energies in their energy mix, such as the USA and China, can generally increase their renewable capacity without major structural reforms.
However, countries already well advanced in this transition, such as Denmark and Ireland, face more complex challenges.
These countries need to invest in energy storage and grid management solutions to stabilize their power systems.

Energy storage as a solution

Managing variations in production requires innovative solutions such as energy storage.
Battery technologies enable surplus electricity to be stored for use when production is insufficient.
In South Australia, a management model based on energy storage has already proved its effectiveness, helping to stabilize fluctuations in the local grid.
However, these solutions are not accessible to all countries, due to their cost and the infrastructure required.
Investment in grid interconnections therefore becomes a viable option for several states, enabling renewable resources to be pooled and production to be efficiently managed on a regional scale.

Essential public policies

Technological progress is important, but the role of public policy should not be underestimated.
According to the IEA, successful integration of ERVs depends above all on appropriate regulatory reforms.
Governments must take steps to encourage investment in flexible infrastructures such as smart grids and storage systems.
They must also put in place regulatory frameworks that encourage close coordination between grid operators, energy producers and regulators.
Recent examples show that this approach works.
In Spain, improved weather forecasts and optimized power grids have made it possible to increase the share of solar and wind power without destabilizing the system.
Other countries should follow this example to avoid delays in implementing these technologies.

The challenges of network stability

As energy systems become more complex, the challenge of stability increases.
To guarantee continuity of service, networks must not only absorb production peaks, but also manage sudden drops.
This means investing in modern transmission infrastructures and strengthening cooperation between countries to stabilize energy supply on a large scale.
In addition, technical solutions such as smart grids, capable of modulating demand according to available production, are set to play a key role in the coming years.
The digitization of energy infrastructures represents an opportunity to optimize the balance between supply and demand, but it requires colossal investments and an overhaul of regulatory frameworks.

An inevitable but complex energy transition

The energy transition to renewable energies is an inevitable reality for many countries.
However, the obstacles to integrating these new production capacities are numerous.
Governments and businesses need to work together to develop the right infrastructure for REVs, while ensuring the resilience and security of energy systems.
The experience of pioneers in this field, such as Ireland and Denmark, shows that solutions already exist to overcome these challenges.
However, their widespread adoption will depend on governments’ ability to anticipate future needs and implement appropriate public policies.

South African developer Sturdee Energy has secured funding to begin construction of the 91.2 MW Bela Bela solar plant in Limpopo Province, set to supply power to a major industrial site.
US-based mPower has opened a high-throughput factory for solar modules targeting space missions, with an initial capacity of 1 MW per year, set to double by mid-2026.
Turbo Energy launches a pilot project in Spain to tokenize hybrid solar installations financing, leveraging Stellar and Taurus blockchain technology to access a $145.18bn EaaS market by 2030.
Mizuho Lease initiates a takeover bid for Japan Infrastructure Fund, targeting its delisting and a strengthened partnership with Marubeni in solar asset management.
A joint research team in China has developed an innovative molecular strategy to enhance thermal stability and efficiency of perovskite solar cells, paving the way for large-scale production.
DMEGC Solar received TÜV SÜD certification for its Infinity G12RT-B66 photovoltaic module series, reaching a peak output of 655 W, with mass production scheduled for the first quarter of 2026.
TotalEnergies has signed a 15-year renewable power agreement with Google to supply its data centres in Ohio through a solar plant connected to the PJM grid.
Statkraft strengthens its presence in Brazil with three new solar and hybrid plants representing an investment of NOK2.3bn ($211mn), consolidating its strategy in a fast-growing energy market.
The delay rate for large-scale photovoltaic projects in the United States fell to 20% in Q3 2025, down from 25% a year earlier, despite record growth in installed capacity in 2024.
Evolution III fund of Inspired Evolution invests alongside FMO and Swedfund to accelerate regional growth of Sedgeley Solar Group, active in solar installations for commercial and industrial sectors.
British company Naked Energy is accelerating its international expansion with a new office in Madrid to deploy its solar thermal technology in the industrially promising Iberian market.
Tata Power is preparing a 10 GW ingot and wafer facility to consolidate its domestic solar chain, secure supplies, and capture PLI incentives ahead of 2026 local content mandates.
ACEN Australia’s Stubbo Solar project becomes the first solar asset to operate under an LTESA contract, strengthening its role in New South Wales’ energy transformation.
The Japanese oyster producer is investing in both resale and construction of photovoltaic plants, evenly splitting resources to consolidate its GO Store subsidiary's position in the domestic solar market.
Fortescue launches a solar innovation hub in the Pilbara with AUD45mn ($28.9mn) in public funding to test technologies aimed at accelerating and optimising large-scale solar farm construction.
The Philippine Department of Energy validated over 10 GW of renewable projects, including floating solar and hybrid systems, in the fourth round of its national green auction programme.
Developer Headwater Energy secured $144mn in financing arranged by BridgePeak Energy Capital to build a 112.5MW solar plant, expanding its portfolio in the southeastern United States.
JA Solar has signed an agreement with Larsen & Toubro to supply photovoltaic modules for the Samarkand 1 and 2 solar power plants, developed by ACWA Power with a total installed capacity of 1.2 GW.
Taiwanese company HD Renewable Energy is expanding internationally with major solar and battery storage projects in Australia and Japan, targeting more than 6 gigawatts of installed capacity by 2028.
Two photovoltaic plants with a combined capacity of 1,400 MW will be operational in 2027, strengthening EDF Group's international presence and Asian actors in Saudi Arabia's energy market.

All the latest energy news, all the time

Annual subscription

8.25€/month*

*billed annually at 99€/year for the first year then 149,00€/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2€/month*
then 14.90€ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.