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.

T1 Energy will supply Treaty Oak with 900MW of solar modules over three years, leveraging domestically produced cells from Austin to meet increasing regulatory requirements.
Solarpro commissions Hungary’s largest photovoltaic plant using 700,000 advanced modules supplied by LONGi, with an expected annual output of 470 GWh.
UK-based manufacturer Awendio Solaris plans to build a 2.5 GW solar industrial platform, expandable to 5 GW, in Quebec, targeting North American markets with a 100% regional supply chain.
Technique Solaire has secured €40mn ($43.5mn) in junior debt from BNP Paribas Asset Management to structure two solar portfolios totalling 392 MWp across France, Spain and the Netherlands.
EDF Power Solutions UK has appointed METLEN to lead engineering and construction for the 400MW Longfield solar farm in Essex, with commissioning scheduled for 2030.
Independent power producer Neoen has secured six agrivoltaic projects totalling 124 MWp, reinforcing its position as the leading winner in French solar tenders since 2021.
As the photovoltaic industry enters a phase of deep restructuring, the duel between TOPCon 4.0 and heterojunction technologies is redefining manufacturers’ margins. In 2026, reducing production costs becomes the primary strategic lever for global market leaders.
JA Solar and Trinasolar top Wood Mackenzie’s latest semiannual ranking despite a sector-wide net loss of $2.2 billion. Industrial leaders are strengthening their grip on global photovoltaic module supply through rigorous financial discipline.
BayWa r.e. has finalised the sale of a 46 MW floating solar park, the country’s largest, to a Dutch public-local consortium, marking a new step in the decentralised structuring of the solar market in the Netherlands.
The ATUM Solar industrial complex, located in Ain Sokhna, will include three factories—two of 2 GW capacity—backed by a $220mn investment from an international consortium.
AMEA Power has completed the commercial commissioning of a 120 MWp solar project in Kairouan, marking a national first in Tunisia for a renewable energy installation of this scale.
The Gerus plant becomes the first solar installation in Namibia to sell electricity directly on the Southern African Power Pool regional market.
Japanese conglomerate Tokyu teams up with Global Infrastructure Management and Clean Energy Connect to build 800 low-voltage solar plants totalling 70MWDC, under an off-site power purchase agreement for its facilities.
Pivot Energy has secured $225mn in funding from three banking partners to support a portfolio of 60 community solar power plants across nine US states.
Masdar’s exit ends ReNew Energy's privatisation attempt, despite offer rising to $8.15 per share.
California surpassed 52.3% of electricity from renewables and large hydro in 2024, marking a major energy milestone while increasing pressure on storage, permitting and curtailed production.
European Energy France has secured two wins in tenders issued by the French Energy Regulatory Commission for its agrivoltaic parks in Saint-Voir, with a combined capacity of 14.3 MWp and commissioning expected by late 2027.
TotalEnergies will supply Google with 1TWh of renewable electricity from a 20MW solar plant in Malaysia under a 21-year power purchase agreement.
Enviromena secured approval for its Fillongley solar farm after a local council’s refusal was overturned, despite conflicts of interest tied to public funds used to oppose the project.
According to Wood Mackenzie, the global solar inverter market will face two consecutive years of contraction after record shipments in 2024, driven by regulatory tensions in China, Europe and the United States.

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.