ClimateTech Videos

IRENA Insights: Flexibility for a Secure and Affordable Power Sector Transformation

The IRENA Insights webinar presented findings from the agency’s new report “Flexibility for a Secure and Affordable Power Sector Transformation.” Speakers Francisco Gafaro and Danielle Salim explained why flexibility has become as critical as renewable capacity in a power system that will supply the majority of final energy demand. The report projects electricity to provide over 50 % of final energy by 2050 and renewable generation to exceed 90 % of electricity supply. Under a 1.5 °C pathway, daily flexibility requirements are expected to be ten times higher than in 2019, with weekly and monthly needs rising sixfold. Flexibility is quantified as the cumulative deviation of net‑load (demand minus variable renewable output) from its average across daily, weekly and monthly horizons. Gafaro illustrated market signals from Germany, where expanding solar output compresses midday price spreads while increasing peak‑hour volatility and the frequency of negative‑price hours—clear signs of mounting flexibility stress. Salim highlighted that solar‑heavy systems face pronounced intra‑day swings, whereas wind‑dominant grids need more weekly and seasonal adjustments, a pattern that varies with climate zones. The analysis warns that without a diversified flexibility portfolio—combining storage, demand‑response, grid reinforcement and cross‑border interconnections—future power systems risk higher curtailment, price volatility, and reliability gaps. Policymakers and investors must therefore embed flexibility planning into national energy strategies to achieve affordable, secure decarbonisation.