IRENA Highlights Systemic Innovation as Key to Transforming Global Energy Systems

The International Renewable Energy Agency (IRENA) has released a new report, “Innovation Landscape for Sustainable Development Powered by Renewables”, emphasizing that systemic innovation is essential to transform energy systems worldwide. The report was unveiled during a Ministerial Dialogue on Artificial Intelligence (AI) at IRENA’s Assembly.

According to the report, energy transformation occurs when technological advancements are integrated with innovations in policy, regulation, market design, system operations, and business models. It highlights 40 emerging solutions, including AI-driven applications, smart grid planning, off-grid systems, and innovative business models, showing that only a holistic, systemic approach can ensure resilient power systems, broaden energy access, maintain affordability, and fully realise the energy transition.

“This is not just about technology availability, but about solutions that deliver social justice and leave no one behind,” said Francesco La Camera, Director-General of IRENA. “The report provides policymakers with a toolkit to design tailored, context-specific solutions for sustainable energy systems.”

The report underscores that renewable technologies are now the cheapest source of electricity in most regions, and the combination of cost-effective renewables with decentralised innovations makes universal electricity access and resilient power systems achievable, particularly in emerging markets and developing economies.

Global Case Studies Highlight Innovation Impact
The report showcases several real-world examples of systemic innovation:

• Tanzania, Kenya, Colombia, Malaysia: Residents of energy communities collectively own and benefit from local renewable projects.
• West Africa: Regional power pools allow 15 countries to share renewable resources across borders.
• Malaysia: Dynamic line rating increases transmission capacity by 10–50% through real-time weather monitoring.
• Uganda and Rwanda: Battery swapping stations make electric mobility accessible.
• Sierra Leone and Liberia: Pay-as-you-go business models brought affordable electricity to over 500,000 people.

The innovations are organised into four strategic toolkits to guide context-specific solutions: grid modernisation, decentralised solutions, inclusive local development, and energy access.

IRENA stresses that action is required at all levels, from multilateral institutions and regional forums to national governments and local communities. The report aims to enable policymakers to design tailored solutions reflecting technical, economic, and socio-cultural needs specific to each country, region, or community.

This report marks the third edition of IRENA’s Innovation Landscape series, continuing the agency’s efforts to highlight practical, scalable solutions that enhance the impact of renewable energy across global energy systems and economies.