they require innovative thinking in policy
design and implementation. The cost and
value considerations of integrating wind
and solar into the electricity system will
likely become even more challenging as
penetration grows. Appropriate market
design that accounts for the value of
variable renewables to the grid remains
important for maintaining momentum.
On the back of the Paris agreement,
the G20 economies in particular have a
crucial role in ensuring that appropriate
policies are implemented and maintained.
Collectively they account for 75% of
global energy demand and 80% of
energy-related CO2 emissions. This
means they can make the difference in
removing uncertainties, individually and
collectively, if they share best practices
and learn from experience. The IEA
stands ready to support G20 action in
this area, including through our recently
expanded work programme on grid
integration of variable renewables and
electricity security.
China reached a new high of nearly
US$ 100 billion, making up 60% of its
total generation investment, with wind
investment for the first time surpassing
hydropower.
We are moving through a crucial period
for those with a stake in low-carbon
electricity. For the first time, renewables
have seized the top spot in global
power market growth and are set to
dominate the emerging power systems
of the world. But this is hardly time
for complacency: while governments
now realise that, even in the context of
lower fossil fuel prices, renewables can
provide affordable win-win solutions for
enhancing energy security and reducing
local pollution while mitigating global
climate change, economic uncertainties
and wavering policy commitments risk
undermining investor confidence and
slowing growth. I truly believe that
while variability of renewables is a
challenge that energy systems can learn
to adapt to, variability of policies poses
a far greater risk. The G20 economies
hold the keys to ensure this does not
happen and that, in contrast, we see
even greater efforts to accelerate the
deployment of low-carbon electricity
to get us on track to meet climate
change goals. ■
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