Technological innovation has been one of the key drivers of the global energy transition. Combined with the economies of scale, innovation has helped to drive down the costs of renewables-notably solar and wind over the past decade.
As more solar and wind penetrate the power sector, it will be necessary to introduce measures to ensure they are integrated while maintaining the secure and reliable operation of the system. Hence, technological innovation must focus on development and cost reduction in order to enable technologies like storage, digitalisation of grid services, smart charging for electric vehicles, wider utilisation of mini-grids, and much more. Technological innovation and R&D will also play a key role to accelerate energy transition in heating, cooling and transport sectors.
There is also a role for innovation beyond technology. This will require system-wide innovation that combines technological innovation with innovation in system operation such as consumer engagement, demand response and supply-side management, business models, processes, market design, financing, and regulation.