Embedding Resilience in Power Sector Planning

Electricity is crucial in ensuring optimum healthcare, education, quality of life, and sustained economic development. As countries embed clean energy and move to a standard all-round electrification practice, the health of the power system assumes greater significance. However, power system reliability is threatened by two factors: the variability of generation sources to facilitate the clean energy transition; and climate- induced extreme weather events that can lead to cascading impacts through the electricity value chain. Not accounting for climate risks can burden or delay the pursuit of the clean energy transition. Further, there is a need for diversified supply chains to hedge against material availability risk, and ensure circular economic frameworks to maximise resource value. The G20 should consider the following actions to build power sector resilience within the ambit of its wider international cooperation and knowledge-sharing work: 1. Include resilience in long-term power-sector planning 2. Invest in grid-hardening measures 3. Leverage distributed clean energy technologies and grid digitalisation 4. Invest in energy storage ecosystems that provide balancing services and flexibility