Accelerating power sector transition
The power sector sits at the heart of the energy transition and is critical to the transition of many other sectors due to its positive spill-over effects. However, unprecedented levels of coordination, investment and planning are needed now to deliver a zero-emissions power sector. This background paper is intended to frame discussions that power and utilities sector companies will have with investors during 2021 in their shared ambition to deliver on decarbonisation of the sector.
Investors and companies have a critical role to play through investments in renewables infrastructure and other supporting clean technologies like storage or carbon capture. According to IEA’s World Energy Outlook 2020 report (WEO 2020), a completely unprecedented level of investment of over US$ 2.2 trillion in the power & utilities sector is needed annually by 2030 to achieve net zero emissions in 2050, more than twice the level achieved in the best year of oil and gas upstream investment.