Energy was in focus on day five of this year’s edition of COP in Baku. Accelerating the energy transition was a red thread in virtually all conversations, and, in keeping with the overarching theme of “Finance COP”, the role of energy transition investments and finance was frequently discussed.
Energy storage and grids join generation as key focus points
The COP 29 Global Energy Storage and Grids pledge gained momentum as a range of countries committed to a 6-fold growth in global energy storage by 2030 compared to 2022 levels as well as modernising the grid. Large economies such as US, UK, Brazil, and Saudi Arabia were among the key signatories.
The pledge is also supported by Utilities for Net Zero Alliance (UNEZA) which was founded at COP 28 and this year announced a doubling of members across the globe as well as increased annual investments in grid and renewable generation.
Following similar pledges for generation previous COPs, deployment of wind and solar generation has surged in recent years. Energy storage and grid upgrades are crucial to enabling higher penetration of these intermittent renewables and avoiding “wasting” energy in what is known as “dispatch down”. This issue is very familiar to Ireland where dispatch down levels have surged in recent years due to lacking grid infrastructure and storage. These are now priority areas requiring significant action to support Ireland’s ambitious renewable energy targets.
Cross-border collaboration is on the rise
The day also saw several commitments on regional and continental levels: In a significant development for the region, IRENA and Azerbaijan unveiled a renewable energy partnership for Central Asia. The Accelerated Partnership for Renewable Energy in Central Asia (APRECA), launched by energy ministers from six central Asian countries (Azerbaijan, Kazakhstan, Kyrgyz Republic, Tajikistan, Turkmenistan, and Uzbekistan), aims to accelerate the development of renewable energy and green industry in the region.
Regional cooperation between the countries, supported by a robust framework, leverages their individual strengths, and is hoped to fast-track investments and enhance inter-regional connectivity to support renewable energy trade. Similarly, the Latin America Energy Organization (OLADE) announced a regional target for energy efficiency and the African Energy Commission (AFREC) launched a continental level Energy Efficiency Programme, Strategy and Action Plan. This comes only weeks after seven Mediterranean Countries committed to develop 1 TW terawatt of renewable capacity by 2030 through the TeraMed initiative, which investments could total. close to €700 billion.
These announcements are prime examples of how cross-border collaboration, regional frameworks, and shared visions can accelerate the energy transition. Partnerships such as the ones announced at COP 29 can improve efficiencies in renewable energy deployment, improve regional markets, and provide sense of comfort to investors that one country could not do alone.
As such, regions that have lagged behind in renewable energy generation can boost their energy transitions and create environments that attract further green investment, prosperity, and economic stability down that line.
Some call for changes to climate negotiations
Another key development of today’s talks, albeit not only energy focused, was the claim that the United Nations' COP climate talks are "no longer fit for purpose" and need an urgent overhaul. This was stated by a group of key experts including former UN secretary, Ban-Ki Moon, former UN climate chief Christiana Figueres and former president of Ireland Mary Robinson. The signatories’ key concern lays in the inability of the current structure to deliver change at the exponential speed and scale required to combat climate change.