INTERNATIONAL RENEWABLE ENERGY AGENCY
Five Key Takeaways from the IRENA Innovation Week 2025

The energy transition is unstoppable and at the heart of this transition lies the urgent need to align renewable energy deployment with inclusive development, social equity, and local value creation. In this context, IRENA Innovation Week 2025 focused on two key aspects: innovation in infrastructure for tripling renewables and renewable-based solutions for sustainable development including in the Global South. Over the course of three days, diverse stakeholders from energy leaders, experts, financial institutions, industry innovators to academia convened to share insights on how innovation can power sustainable growth across emerging and developing economies and what is needed to meet the tripling renewable power capacity goals by 2030. This goal has been established by the international community to limit global temperatures rise to 1.5°C.

Innovation is more than just technology

Innovation in the energy transition must be approached from a systemic perspective. Systemic innovation goes beyond technology, it also involves policy, regulation, market design, and system operation. Discussions emphasised the need to approach innovation holistically and cross-sectorally as there is no one-size-fits-all solution in innovation for the energy transition.

No digitalisation without energy and no energy transition without digitalisation

Digital technologies and Artificial Intelligence (AI) are becoming essential tools for managing variable renewable energy, from demand and pricing forecasting and to flexibility and smart grid management. These tools can also inform predictive maintenance of energy infrastructure. However, rising energy demands from data centres that support AI introduces both challenges and opportunities for grid planning and expansion. There is a need for careful coordination between digital innovation and energy infrastructure development, with renewable energy being a key power source to meet the rising demand reliably and sustainably. In addition, to ensure the just transition, AI should be locally led and inclusive.

People and communities are in the center of energy transition

Digitalisation and renewable energy infrastructure are benefiting communities in multiple ways from boosting rural agriculture in China to building energy communities in Colombia and Malaysia These case studies showcase the broad human and environmental impacts of renewables. However, emerging and developing economies (EMDEs) face an urgent need to modernise their power grids due to rapidly growing demand and a still persisting lack of energy access. Therefore, innovation must be leveraged to go beyond technical upgrades and include efficient planning and investment frameworks, access to relevant digital solutions tools which enhance flexibility, to reduce the need for further expansion and focus on resilience and reliability. Grid modernisation is not only about technology access, but also about social justice and not leaving anyone behind.

Local value chain development is a priority for the Global South

Renewable-based energy transitions in the Global South must prioritise local manufacturing, skills development, job creation and building economic resilience, all supported by a range of enabling policies. Prioritising local value creation not only accelerates industrialisation but also strengthens supply chains and fosters energy independence. True progress requires moving beyond just installing gigawatts to invest in people, industries, and policies that empower communities and nations alike. Discussions highlighted the need for regional joint industrial policies to leverage shared resources and create economies of scale to build sustainable, homegrown solutions for renewable energy sectors across the Global South. Regional coordination and cross-border industrialisation strategies are critical to enabling local development of technology infrastructure.

Energy is a catalyst for inclusive growth and economic development

Advancing sustainable development, especially in rural and remote contexts, requires more than simply delivering electricity. As one of the speakers pointed out "Energy is not the end, development is. Powering productive lives means powering economies." Therefore, energy access needs to be integrated with local economic activity, powering agriculture, healthcare, small businesses and value chains that uplift communities. However, scaling productive uses requires a shift in perspective from focusing on energy access to enabling long-term, reliable energy use that aligns with community-defined development goals. Energy can be transformed from being a service to becoming a catalyst for inclusive growth. This can be achieved only with a supportive policy frameworks, innovative financing and direct support to local communities, in particular women entrepreneurs and local industry.