Energy shocks have not removed climate from the global agenda. They could instead strengthen interest in solutions that reduce reliance on imported fuels, contain costs and can be deployed rapidly. This is the message highlighted by Fatih Birol, Executive Director of the International Energy Agency (IEA), at a Financial Times energy transition summit.
In the public summary of his remarks, Birol emphasizes that renewables can meet these expectations through rapid commissioning and competitive costs. This does not mean wind and solar can meet all needs alone or that the energy crisis is resolved. Rather, it recalls that climate policy and supply security can move in the same direction when investment is well planned.
Energy security broadens the climate debate
Geopolitical tensions and market disruption make oil and gas imports more vulnerable to price fluctuations and logistics bottlenecks. Governments must then balance short-term availability, energy bills, industrial competitiveness and emissions reductions. This context makes local electricity generation more attractive, even though its development requires infrastructure and balancing capacity.
The IEA observes that electricity plays a growing role in the global economy. In an analysis published in January 2026, the agency estimates that its use is increasing around twice as fast as total energy demand, driven particularly by industry, transport, heating, data centers and digital technologies. This trend increases the need to invest in power plants, but also in grids and equipment ensuring continuity of service.
Renewables already meet a substantial share of new electricity demand in many countries, often because they offer a competitive option. This varies by market and depends on financing costs, natural resources, land availability and grid conditions. A solar project can be built quickly, but does not necessarily supply electricity at all hours. Its value then depends on the flexibility of the system hosting it.
Electricity prices also depend on the grid
A power plant’s generation cost represents only part of the final cost to users. Transmission lines, substations, storage, regional interconnections, forecasting systems and demand management determine the ability to integrate new sources. Without these investments, efficient plants may generate less than expected or fail to supply areas that need them most.
Planning must therefore connect climate goals with electricity system needs: strengthen grids before congestion arises, coordinate wind and solar projects with dispatchable resources, and develop storage where costs and uses justify it. Energy efficiency also helps moderate peak demand and reduce household and business expenditure.
For emerging markets, another factor weighs heavily: the cost of capital. Interest rates, exchange rate risks and guarantees required from buyers can make an otherwise technically competitive project more expensive. Concessional financing, public guarantees and long-term partnerships can improve bankability, provided contracts allocate risks clearly and projects are integrated into national strategies.
A transition that remains diverse
Renewables’ growth does not mean an immediate exit from oil and gas. These resources will remain present in transport, industry, petrochemicals and some electricity systems for an extended period. The response to volatility must therefore combine efficiency, diversification, reliable infrastructure and gradual emissions reductions, rather than relying on a single technology.
The IEA also stresses that security risks are shifting. Vulnerabilities in fossil fuel supplies are joined by those affecting electricity grids, manufacturing chains and strategic minerals needed for batteries, equipment and infrastructure. Diversifying generation sources without diversifying component suppliers can shift dependence rather than reduce it.
Developing local industrial capacity thus becomes an economic security issue. Countries able to manufacture, maintain or repair some equipment and train technicians can better control lead times and costs. International cooperation remains essential, but benefits from accompanying skills transfers and broader technology access.
An opportunity for African countries
For Africa, where access to reliable electricity remains a major issue for households and industrialization, renewable projects can increase supply and reduce exposure to fuel imports. Success will depend on the ability to finance grids, improve distribution and connect new plants with existing infrastructure.
Countries with strong solar, wind, hydro or geothermal potential can benefit from local resources while adapting choices to each system’s demand and capacity. Regional interconnections can lower costs when countries coordinate investments, rules and electricity trade. However, projects must be assessed on their full cost, timetable, tariff impact and contribution to productive activity.
Birol’s message therefore highlights a possible convergence: competitive renewable energy can serve both emissions reductions and supply security. To deliver results, governments will need to accelerate feasible projects, invest in grids and secure financing. Climate will return durably to the center of decisions when commitments translate into reliable, affordable and accessible electricity.