WORLD ENERGY TRANSITIONS OUTLOOK
5.1 POWER SYSTEM FLEXIBILITY
Power system flexibility is the glue that connects a renewable power system with large shares of solar and wind with increasingly electrified end-use sectors. It enables reliable and affordable electricity supply thanks to smart technologies, new regulations and business models, digitalisation and new operational practices. This section looks at enabling innovations (5.1.1) and how they can be leveraged in a decarbonised power system by 2050 by operating in an optimal way through electricity and hydrogen supply (5.1.2). Section 5.1.3 recommends policies to be considered today to enable the next steps in the energy transition, towards the objectives of the Paris Agreement, as outlined in IRENA’s 1.5°C Scenario.
5.1.1 Systemic innovation for power system flexibility Three main innovation trends – digitalisation, decentralisation and electrification – are accelerating the transformation of the power sector, with VRE at its core: They are changing paradigms and unlocking power system flexibility for integrating larger shares of variable renewables. Innovations are not only technological; they also include innovations in market designs, system operation and business models. Innovative solutions emerge from systemic innovation, the matching and leveraging of synergies between various innovations across multiple components of the power system. In Innovation Landscape for a Renewable-Powered Future, IRENA identified 30 innovations that facilitate the integration of large shares of variable renewables, following the systemic innovation approach (Figure 5.1). One-size-fits-all solutions do not exist: The design of an optimal strategy for each power system and the implementation of different innovations depend on the country context and system-specific variables, such as the technical and economic aspects of a given power system. IRENA provides a toolbox of innovations that countries can use to create their own tailored solutions for flexible power systems (IRENA, n.d.).
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