Powering G20 Power Grid Via Inclusive And Transparent Energy Governance

The COP28 has reinforced the determination of the G20 to pursue efforts to triple renewable energy capacity and double down on efficiency globally by 2030. Recently underlined by the International Energy Agency, well-designed policies and a conducive market environment are crucial to achieving these collective goals of the G20. In pursuit of global goals, inclusive and transparent governance of power systems is key to laying the foundation for climate-compatible energy policy and market regulations. However, the urgent transition to renewables often faces global challenges due to the lack of inclusiveness and transparency within existing power systems. In this context, this policy brief will address the need for the G20 countries to systematically transform their power systems to facilitate inclusive decision-making processes for diverse stakeholders, and the adverse impact of energy governance that is “unfair” to renewables and its stakeholders – notably local renewable businesses and workers, by highlighting key cases within the G20 representing both the Global North and South. Lastly, this brief will suggest actionable policies to increase transparency in the power sector by transforming energy governance into a renewable-friendly environment. The G20 can show leadership in driving such change by 1) preventing conflict of interest between major entities within the power systems and 2) Strengthening the independence of an energy-related regulatory body that monitors unfair and uncertain practices in the market, while 3) ensuring all stakeholders of the market – existing and new players of energy transition -to participate in the equitable decision-making process to support renewable expansion. This will allow for accurate risk assessment of new businesses, resulting in more reliable project financing for emerging businesses with a potential to support the expansion of solar and wind at scale.