Getting to Net Zero: Increasing Clean Electrification by Empowering Demand

The document outlines a framework for achieving a net-zero electricity grid by focusing on the 'user side' of the system. It proposes nine mandates across three pillars: digital technology to enable flexible demand and grid resilience, new business models to make the transition affordable through 'prosumerism' and Energy-as-a-Service, and a new governance model featuring a 'system architect' to oversee the integrated energy transition.

• Digital technology is essential for managing the distribution grid's evolution toward decentralized energy supply, allowing operators to handle the variability of renewable energy and distributed energy resources (DERs). Tools such as active network management (ANM) can increase renewable penetration by allowing more generators to connect to the grid without requiring immediate physical infrastructure expansion.
• Smart grid technology can mitigate the need for fossil-fuel-based reserves by creating flexible demand to fill gaps when renewable generation is low. This includes 'peak shaving'—smoothing the demand curve to avoid grid congestion—which can be achieved through prosumers using batteries and EVs to store and sell energy back to the grid.
• Electric vehicles (EVs) are expected to constitute at least 5% of global electricity demand by 2040, with global fleets potentially reaching 33% electrification. Vehicle-to-grid (V2G) technology allows EVs to act as prosumers, augmenting grid capacity during peak hours and reducing the total cost of ownership for drivers.
• The transition to a net-zero grid requires new market models that empower 'aggregators'—entities that consolidate electricity from various small DERs to create economies of scale. To attract investment, the report emphasizes the need for interoperability, data transparency, and the removal of proprietary platforms.
• To make the transition affordable for smaller players, the report suggests 'Energy as a Service' (EaaS) models, which transfer capital expenditures and operational risks from prosumers to financial providers and institutional investors. The EaaS market is projected to grow from $49.6 billion to $88.4 billion by 2027.
• The International Energy Agency (IEA) forecasts that $260-820 billion must be invested annually in global grid infrastructure from now until 2030. The report argues that economic reforms are necessary to ensure these funds support net-zero technologies rather than traditional infrastructure expansion or capacity remuneration.
• A new governance role, the 'system architect', is proposed to provide multidisciplinary oversight of the integrated energy system. This role would be responsible for creating long-term roadmaps, ensuring climate resilience, and coordinating with international counterparts to meet Paris Agreement targets.

APA

World Economic Forum (2021). Getting to Net Zero: Increasing Clean Electrification by Empowering Demand. https://www3.weforum.org/docs/WEF_Increasing_Clean_Electrification_by_Empowering_Demand_2021.pdf

Chicago

World Economic Forum. Getting to Net Zero: Increasing Clean Electrification by Empowering Demand. 2021. https://www3.weforum.org/docs/WEF_Increasing_Clean_Electrification_by_Empowering_Demand_2021.pdf.

Wikipedia

{{cite report |author=World Economic Forum |title=Getting to Net Zero: Increasing Clean Electrification by Empowering Demand |date=October 2021 |url=https://www3.weforum.org/docs/WEF_Increasing_Clean_Electrification_by_Empowering_Demand_2021.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{worldeconomicforum2021getting, author = {{World Economic Forum}}, title = {{Getting to Net Zero: Increasing Clean Electrification by Empowering Demand}}, institution = {World Economic Forum}, year = {2021}, month = oct, url = {https://www3.weforum.org/docs/WEF_Increasing_Clean_Electrification_by_Empowering_Demand_2021.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }