IRENA: accelerating the Transformation of Energy Industry through Renewable Energy

one? Accelerate the transformation of renewable energy by strengthening political commitment

(I) change policies in the light of past experiences and lessons, adapt them to the changing market environment in a timely manner, and ensure the effectiveness and efficiency of policies. When designing an auction mechanism, decision makers need to make a tradeoff between price reduction and other policy objectives.

(II) with the gradual increase in the share of uncontrollable renewable energy (variable renewable energy,VRE), a new policy framework is needed to facilitate the transition to smarter, more decentralized, more resilient and more flexible power systems. Measures to increase flexibility must be implemented by providing adequate reliable and secure electricity services at reasonable prices while sharing costs and benefits among stakeholders in a fair and equitable manner.

(3) the complete transformation of the energy system cannot be achieved without strengthening the deep synergy between renewable energy, energy efficiency and terminal industries. The combination of power, heating and refrigeration, transport and energy efficiency improvements is critical to realizing the full potential of renewable energy in the entire energy system. A more comprehensive energy policy would help promote these synergies, allow renewable energy to be integrated more easily, and create a more enabling environment for investors.

two? Increase investment in renewable energy in the future

The main development trends of investment in renewable energy are as follows: 1 over the past decade, global investment in renewable energy has shown a trend of steady growth, from less than US $50 billion in 2004 to US $348 billion in 2015. however, the current level of investment is not enough to achieve the international climate target. (2) the new capital market tools provide a new group of investors for renewable energy investment opportunities, and ultimately improve the availability of financing. Institutional investors are paying more and more attention to renewable energy investment, especially in Europe, where many pension funds are invested in large wind power projects. 4 the new business model provides new ways to finance renewable energy, including leasing and energy services companies (energy? Service? companies,ESCOs) and other emerging business models. Policy recommendations for mobilizing additional investment in renewable energy:

(1) strong government commitment is needed in the future to reduce the risk and cost of financing, and ultimately to build a stable and attractive market environment for renewable energy. The policy focus should be further focused on ensuring that public financing institutions have the right incentives to provide appropriate risk-reducing financing instruments and ultimately encourage investment from a wider range of investors.

(3) create an environment conducive to the private sector and encourage business model innovation that can attract more private capital. Leasing helps to build bridges between investors and scattered users of solar photovoltaic facilities; through securitisation, leasing can attract large-scale institutional investors to enter the market. ESCOs helps to overcome the financing and other long-term risks faced by large-scale renewable energy heating and cooling systems.

(4) the success of any investment strategy depends on the active participation of a large number of public and private investors. These investors include development finance institutions, climate finance institutions, private equity funds (private equity fund), institutional investors, export credit agencies (export credit agencies) and commercial banks.

three? Encourage affordable innovative technologies

In recent years, the development characteristics of renewable energy technology are mainly summarized as follows: 1 technological progress and falling prices have led to the use of renewable energy all over the world, in which the power industry has played a pioneering role. This feature of solar photovoltaic technology is the most obvious. 2 the sharp decline in the price of renewable energy technologies has opened up new markets for its further rapid growth. (3) the installed capacity and output of solar photovoltaic will grow faster. (4) the new way of storing electricity will create conditions for the rapid growth of uncontrollable renewable energy generation. The report suggests that technological innovation needs to be encouraged in the future to open new markets and drive prices down:

(1) decision makers need to continuously support the innovation of solar photovoltaic technology in order to further reduce the cost and improve the reliability of components and systems.

(II) major breakthroughs in auxiliary systems, especially storage technology, will contribute to the further integration of renewable energy into the power system. In the future, coordinated efforts are needed to address the following obstacles, such as the uncertainty of regulatory measures and the limited ability to convert the value of stored projects into cash.

four? Provide modern, renewable energy-based energy services for all

Development status of modern renewable energy-based energy services for all: 1 taking into account the possible rate of expansion of the power grid, nearly 60% of the additional power generation required to achieve full power generation by 2030 will come from renewable energy schemes for off-grid applications (hereinafter referred to as "off-grid schemes"). 2 the deployment of offline programmes depends on the effective integration of policy, financing, technology and institutional capacity. (3) the experience of small power grids in recent years shows that policies and regulations need to be changed. In order to solve the problem of using off-grid solutions to obtain electricity, the report puts forward the following policy recommendations:

(1) the National Energy Popularization Plan should consider off-grid applications of renewable energy technologies as the main option to complement grid-based options. Creating favourable conditions for the deployment of offline programmes requires the use of proprietary policy and regulatory frameworks, complementary institutional structures, financing and business models tailored to customer needs, and innovative technological solutions.

(II) sector-specific policies and regulatory measures are needed to promote the deployment of offline renewable energy technologies and to increase the participation of the private sector. For small grids, policy and regulatory frameworks must reduce barriers to market entry and reduce development costs. The regulation of feed-in tariff should ensure the sustainable development of small power grids. In order to solve the risks brought by the deployment of the main power grid, it is necessary to formulate a reliable overall plan for rural electrification, implement the interconnection and compensation mechanism and formulate a detailed plan. In addition, special financing tools need to be introduced to fill the investment gap.

(III) forward and backward linkages in energy access help to ensure that projects are sustainable and maximize social cost-effectiveness. The paradigm of offline solution deployment needs to change, with the focus shifting from the installed capacity or supply-side paradigm to the demand-side paradigm for improving life and services.

five? Using Renewable Energy to support the realization of Sustainable Development goal

Deploying renewable energy to achieve SDGs's seventh goal (ensuring access to affordable, reliable and sustainable modern energy for all) not only contributes to energy transformation, but also helps countries achieve other SDGs, including poverty eradication, health, water, nutrition, cities and climate goals. Recommendations for using renewable energy to achieve multiple goals of SDGs:

(1) decision makers need to conside