Page 9 - AsiaElec Week 44 2021

AsiaElec POLICY AsiaElec

IEA aims to forge stronger global

regulation of energy transition

AUSTRALIA THE International Energy Agency (IEA) The IEA’s World Energy Outlook 2021
launched at COP26 a new Regulatory Energy showed that controlling the global temperature
Transition Accelerator (RETA), which aims increase within 1.5°C requires investment in
to improve the regulatory capacity needed to clean energy projects and infrastructure to surge
decarbonise energy systems and meet the 1.5°C to nearly $4 trillion per year by 2030.
targets. Meanwhile, the Outlook said that the world
The RETA aims to unite energy regulators needed to find 12bn tonnes of new CO2 emis-
from across the globe and to create a common sions reductions by 2030 if there is to be any
framework of best practices, while also acknowl- chance of reaching net zero by 2050.
edging the challenges they face. However, capital for such investments can
The IEA pioneered the concept together with cost up to seven times more in emerging econ-
the UK’s Office of Gas and Electricity Markets omies than advanced economies, often because
(Ofgem), the International Renewable Energy of concerns about local regulations.
Agency (IRENA) and the World Bank. A stable and transparent regulatory envi-
The IEA will host RETA’s Steering Commit- ronment can help reduce the cost of capital and
tee, which will determine its yearly work plan. increase the affordability of the clean energy
The initiative has received broad support transitions.
from regulators around the world, and a joint With the power sector shifting from relying
statement endorsed by several regulators will on centralised fossil fuel power plants to large
soon be available. amounts of diffused resources, which is not
Regulators have an important role to play available on demand, regulation is essential to
in clean energy transitions, both to encourage ensure flexibility and capacity adequacy.
investment and to manage energy systems that Regulators also need to consider new types
increasingly rely on electricity from renewable of energy security issues such as resilience to
sources. extreme climate events and cyberattacks.
Other topics for the RETA also include The initiative is part of the Green Grids
renewables integration, tariff structures, electri- Initiative, or One Sun One World One Grid
fication of transport and other sectors, and the (GGI-OSOWOG).™
role of low-carbon fuels such as hydrogen.

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