'Renewable-based electrification is a strategic and effective pathway that policymakers can adopt to simultaneously promote energy security, economic competitiveness, industrial development and climate goals'

Electrification represents one of the most robust drivers of structural transformation in energy systems and an effective long-term solution – a ‘no-regrets’ option – on the path to decarbonisation, which also advances economic and social objectives. When combined with the roll-out of renewable energy, modern grids, system flexibility and improvements in energy efficiency, it can significantly reduce demand for fossil fuels in the transport, buildings and industry sectors.

This approach is outlined in IRENA’s report supporting the COP30 and COP31 Presidencies: Transition away of fossil fuels: a roadmap powered by renewables, electrification and grid enhancement. The global target announced by the COP31 Presidency – that 35% of final energy consumption should be met by electricity by 2035 – is set out in detail in the analytical framework presented in the report, as are the necessary expansion of renewable generation capacity, energy efficiency efforts and investments in grids.

The fall in the costs of renewable energy technologies over recent decades has significantly increased the viability of clean electricity. Solar and wind power have become two of the most cost-competitive sources for new electricity generation in many regions; costs have fallen by more than 88% for solar photovoltaic and 56% for onshore wind between 2010 and 2025, enabling clean electricity to account for a larger share of final energy demand.

In addition to its cost-effectiveness, electrification using renewables meets multiple policy objectives simultaneously: it contributes to climate change mitigation by reducing emissions; it enhances energy security and resilience by reducing dependence on imported fossil fuels, whilst expanding the use of renewables and reducing curtailment; and it strengthens economic competitiveness through the creation of new industrial value chains and technological innovation.

Nevertheless, the global energy transition will require coordinated action not only to transform energy supply and consumption worldwide, but also to develop infrastructure — electricity grids, roads, ports, airports and supply centres —, to evolve supply chains, and to overhaul market designs and public policies. It is also necessary to plan for the decommissioning, conversion or modernisation of existing fossil-fuel assets, such as power stations, refineries and transport infrastructure. Furthermore, as demand for fossil fuels falls, new trade patterns will emerge centred on electricity, hydrogen, energy-intensive products, and strategic and critical materials for transition-related technologies. Nations that depend on the export or import of fossil fuels will face both challenges and opportunities as they formulate strategies for economic diversification and participation in emerging clean energy value chains.

All of this will require unprecedented investment in infrastructure, particularly in renewable energy generation, electricity grids, storage and digitalisation. International cooperation will therefore be essential to make the global transition a reality, especially in emerging and developing economies. In this context, it is worth highlighting the importance of forums designed to accelerate the energy transition, such as those organised by IRENA at its Assemblies, and those organised by ALER, particularly through collaboration between countries that share a common language and face similar challenges, with the aim of promoting knowledge development, capacity building, facilitating project implementation and fostering international cooperation.

Ricardo Gorini

Head of Energy and Socioeconomics Outlooks at IRENA