According to the International Energy Agency’s latest world outlook report, reaching the critical but formidable goal of net zero emissions by 2050 will require major efforts from across society, though it will also offer major advantages in terms of human health and economic development. Certainly, the inherent intermittency of renewable energy sources and the effect that has on stable grid operations will become more pronounced, putting obstacles in the way of the energy transition.
Successful portfolio building can decrease that variance and enhance the ability to fund the extensive pipeline of projects required for the aims of the energy transition to be achieved. In the context of a renewable energy-powered world, this must be done in a precisely targeted way to better manage the inherently stochastic nature of renewable energy. This will directly contribute to freeing up the path to financing the unprecedented volumes of new renewable energy infrastructure that is required for the energy transition to achieve its goals quickly and sustainably.
