Empowering Urban Energy Transitions Smart cities and smart grids INTERNATIONAL ENERGY AGENCY The IEA examines the full spectrum of energy issues including oil, gas and coal supply and demand, renewable energy technologies, electricity markets, energy efficiency, access to energy, demand side management and much more. Through its work, the IEA advocates policies that will enhance the reliability, affordability and sustainability of energy in its 31 member countries, 13 association countries and beyond. This publication and any map included herein are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area. Source: IEA. International Energy Agency Website: www.iea.org IEA member countries: IEA association countries: Australia Austria Belgium Canada Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Japan Korea Lithuania Luxembourg Mexico Netherlands New Zealand Norway Poland Portugal Slovak Republic Spain Sweden Switzerland Republic of Türkiye United Kingdom United States Argentina Brazil China Egypt India Indonesia Kenya Morocco Senegal Singapore South Africa Thailand Ukraine The European Commission also participates in the work of the IEA Empowering Urban Energy Transitions Abstract Abstract In the context of the recent agreement at COP28 in Dubai and the current state of play of urban power systems – from G7 countries to emerging markets and developing economies – this report analyses the steps needed to achieve net zero emissions from electricity, and considers the wider implications for energy security, sustainability and affordability. The decarbonisation of cities is a global priority, and local governments are instrumental in achieving national commitments and objectives. Improved access to and use of data for decision making can support faster and more targeted implementation and help align city and power system planning. Digital solutions and systems can be particularly powerful in cities, where high-density environments create economies of scale and can optimise infrastructure and create new opportunities. Exploring a wide range of projects and initiatives implemented in power systems and cities around the world, the report provides insights on emerging best practices, innovative approaches and how barriers and challenges can be tackled. Our focus is on ways national governments can help cities accelerate clean, affordable and inclusive energy transitions, and ensure resilience and an ability to adapt to climate change. PAGE | 3 IEA. CC BY 4.0. The report also underscores how G7 members can foster innovation through international collaboration, creating enabling environments at the city level to deploy scalable pilot projects, support integrated planning and promote data sharing, all while maintaining electricity security and placing people at the centre of clean energy transitions. Empowering Urban Energy Transitions Table of contents Table of contents Abstract ..................................................................................................................................... 3 Acknowledgements, contributors, and credits ..................................................................... 6 Executive summary ................................................................................................................ 10 Global agreement for renewed momentum to implement clean energy transitions............. 10 Cities as catalysts for change ............................................................................................... 10 Cities fostering innovative and cost-effective people-centred solutions............................... 11 Matching urban growth with increased ambition for inclusive clean energy transitions....... 11 Power grids feel the heat as climate change begins to take effect ...................................... 12 Modernising and expanding power grids for sustainable urban energy futures .................. 12 The power of digital-driven integrated planning.................................................................... 13 International collaboration is essential to address global challenges .................................. 14 Chapter 1: Urban energy revolutions ................................................................................... 15 Key takeaways .......................