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.

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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.

Solar and storage accounted for 82% of new U.S. power capacity in early 2025, despite federal measures slowing their expansion.
Statkraft France won a 15.5 MWc solar project in Mourmelon-le-Grand during the latest national tender round, bringing its total awarded capacity to nearly 70 MWc in less than a year.
Solar growth in Central Europe has doubled that of the European Union since 2019, reshaping the energy mix and boosting battery manufacturing in the region.
Canadian energy producer Cordelio Power has completed commissioning of its Winfield solar project, a 150 MW facility backed by a 15-year contract with Microsoft and a $313mn structured financing deal.
Platform Anza surpassed its 2024 volume in just eight months, responding to developers’ urgency to secure projects ahead of regulatory and fiscal changes expected in 2026.
US-based AGCO has signed a ten-year virtual power purchase agreement with BRUC, covering a 100 MW solar project in Spain, to secure part of its European energy consumption.
Canadian developer Innergex has won all six projects of the Grenier des Essences portfolio for a total of 85 MW, strengthening its position in France’s ground-mounted solar sector.
Canadian Solar unveils its new low-carbon solar modules integrating heterojunction cells and thinner wafers, achieving up to 24.4% efficiency and a peak power output of 660 Wp.
Elmya Energy and Atlantica Sustainable Infrastructure have created a joint venture targeting 4 GW of renewable energy projects in the United States, focused on the ERCOT and WECC markets.
Louth Callan has completed the Mousam River solar project in Sanford, marking a key milestone in the deployment of utility-scale energy infrastructure across the United States.
The state regulator has approved five new solar power purchase agreements to support growing demand under the CARES programme, targeting industrial and commercial clients.
With the commissioning of the El Carrizo plant, Ecoener surpasses 500 MW in installed capacity and becomes the most active Spanish investor in Guatemala’s energy sector.
Aspen Power has finalised the acquisition of two community solar projects totalling over 1 MWdc in New Jersey, developed by Ecogy Energy, with construction expected to begin shortly.
French developer Tenergie has started work on a ground-mounted solar plant at a former quarry, with expected annual output of 7.6 GWh from 2026.
Octopus Energy strengthens its presence in Spain with three new energy projects totalling 600 MW, powering 2.3 million households and accelerating the expansion of its European renewables portfolio.
VSB Italy has obtained authorisation to build a 6.2 MW agrivoltaic plant in Città della Pieve, combining solar power generation and agricultural cultivation on 10.6 hectares.
Ameren Missouri announces a 250 MW solar project to power 44,000 homes, reducing delays and costs through strategic development on company-owned land.
Verso Energy has inaugurated an experimental solar power plant in Outarville, testing the integration of photovoltaic panels across three hectares of large-scale crops with a 90% self-consumption rate.
Independent power producer R.Power is selling a 440MW ready-to-build photovoltaic portfolio in Poland, as political uncertainties drive a wave of divestments in the national renewable energy market.
Grenergy has finalised the sale of the fourth phase of its hybrid solar-storage project in Chile to CVC DIF, valued at up to $475mn, while retaining operation and maintenance for five years.

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