Energy transitions around the world continue to accelerate, and one of the clearest signs of progress is unfolding within the power sector. In many countries, this sector is not only a cornerstone of energy systems – it is a key lever for deep decarbonisation. Encouragingly, projections now suggest that global power sector emissions may have already peaked, marking a critical turning point in our efforts to address the climate crisis.

But while this global trend is promising, the story of the power sector is extremely diverse across regional and national landscapes, from fossil fuel phase-out to renewables integration, grid flexibility and storage deployment. This complexity is exactly where INETTT’s work comes into focus.

As a global network of independent think tanks, INETTT draws strength from the diversity of its members, each rooted in local contexts yet connected through a shared mission: to advance energy transitions toward climate neutrality by mid-century.

In this edition, we highlight the power sector and how our members are engaging with its many dimensions. From advancing battery storage solutions and visualising current energy mixes, to shaping fossil exit strategies and identifying clean investment opportunities, INETTT members are 

working at the intersection of research, policy and data to support equitable and effective transitions.

In this issue…

… you’ll find a guest think piece from our Pakistani member the Sustainable Development Policy Institute on how the country’s power sector can be steered towards greater stability.  Also included is INETTT’s recent policy brief exploring how climate finance can support a just an inclusive transition, along with updates on INETTT’s latest energy system data analytics training, and details of an upcoming power sector training for INETTT members. 

We also bring you highlights from recent research, upcoming events and publications from the network to inspire and inform your work. As countries design their own paths to decarbonisation, the power sector remains a vital entry point for change. Through our regional engagements and global collaborations, we – as the INETTT community – generate insights and share best practices to collectively support the systemic shifts needed to power a cleaner, more resilient future.

Please share this newsletter across your networks and invite others to sign up. 


Kind thoughts,

Pakistan has set ambitious climate and energy transition targets as it aims to shift toward a more sustainable and resilient economy. The power sector plays a central role in these efforts, serving as a crucial driver of economic growth. However, several challenges threaten to undermine this transition. Financial constraints and inefficiencies pose significant obstacles to Pakistan’s climate goals. The country must enhance the efficiency and financial health of its power sector to meet growing energy demands while fulfilling its climate commitments.

In recent years, Pakistan has seen a notable rise in consumer-driven solar adoption. While encouraging for energy access, this trend has affected the financial and operational stability of state-owned enterprises. The country’s centralised power market structure is a barrier to a more self-sustaining and resilient energy future. While fiscal discipline measures have been introduced, long-term structural reforms are essential for a stable and sustainable energy future.

Indeed, there is a strong and growing demand for clean and affordable energy. Meeting this demand through a successful renewable energy transition will require meaningful reforms, particularly to reshape the current market.

The financial strain: Challenges in the power sector

Pakistan’s state-owned enterprises are experiencing rising debt and inefficiencies in revenue collection and operational costs. While assets have grown modestly (by approximately 5% to 8 trillion Pakistani rupees, or 28.4 billion US dollars),¹ liabilities have increased at a faster rate. Debt remains a major concern, with the debt-to-equity ratio at an unsustainable 974%. High borrowing costs add further pressure. Meanwhile, the government has also reduced subsidies and financial support as part of fiscal consolidation efforts.

Despite an 18% increase in net revenue, profitability for state-owned enterprises remains elusive. Many power distribution companies struggle to recover costs due to technical inefficiencies, electricity theft and bill collection issues. Liquidity shortages also create difficulties in meeting short-term financial obligations.

Beyond financial fixes

Prompt action and structural changes can put Pakistan’s power sector on a more sustainable trajectory. While immediate financial adjustments can provide temporary relief, long-term stability depends on a comprehensive strategy, with mechanisms built in to:

1. Restructure financially and manage debt. Liquidity constraints can be managed through asset monetisation, revolving credit facilities and restructuring

Addressing climate change requires urgent and ambitious action. But for transitions to succeed and ensure, they must also be fair. Public support and long-term impact depend on transitions being not just technically and economically sound, but also socially just and inclusive. A truly just transition must span all sectors and actively address core social and economic challenges such as income inequality, unequal access to energy, land and resource rights, and historical injustices.

INETTT’s new brief Just energy transitions in developing countries: Experience from JETP initiatives explores how emerging transition finance mechanisms – drawing on early lessons from the Just Energy Transition Partnerships (JETPs) – are shaping energy transitions. It examines just transitions through three key dimensions:

• Distributional justice: who benefits and who bears the costs?
• Procedural justice: who has a voice in decision-making?
• Recognition and restorative justice: how are past harms and power imbalances acknowledged and addressed?

The brief underscores the need for transition finance to be country-owned, context-specific, transparent, accountable to the public, and rooted in rights-based approaches that safeguard social and environmental standards.

JETPs have the potential to catalyse climate action – provided their current limitations, particularly around equity, scale of funding and local participation, are addressed. With careful, inclusive design, transition finance frameworks can support genuinely just and transformative energy transitions.

The brief was launched at a webinar on 29 April, featuring experts from across sectors and regions, including from INETTT members GreenCape, POLEN Transiciones Justas and the Regulatory Assistance Project. Panellists explored what justice in climate finance really requires, starting with shared definitions and transparent expectations to build trust. They highlighted the importance of centring those most affected – workers, local communities and the informal sector – while ensuring a fair distribution of both costs and benefits. Effective engagement means more than just informing stakeholders; it calls for inclusive, participatory processes and institutionalised accountability. Panellists also stressed the need to close finance gaps by shifting JETP funding away from loan-heavy structures toward more accessible, concessional finance. They also emphasised the vital role of technology transfer.

Ultimately, the discussion affirmed that JETPs can be a transformative tool – if justice is embedded in both design and implementation. Did you miss the webinar? Rewatch it here or below.

APRI conducts policy-relevant research on key issues affecting the continent, including climate, economy, digitalisation and geopolitics, engaging both African and European stakeholders. Through evidence-based analysis and strong partnerships, APRI connects research to practice, shaping dialogue and solutions for Africa’s development and energy transition. We look forward to learning from our new members’ valuable contributions to our growing network!

At the BETD 2025 in March, several INETTT members took part in a crucial discussion on raising climate ambition. In a side event hosted by E3G, representatives from E+ Energy Transition Institute, Transforma and  Institute for Essential Services Reform shared key insights on how emerging markets can help turn climate commitments into concrete action. With the UNFCCC’s Nationally Determined Contribution submission deadline extended to September 2025 and Brazil set to host COP30 at the end of the year, this discussion provided a timely platform to assess progress, set ambitious expectations and explore pathways for scaling renewables, phasing out fossil fuels and mobilising finance for a just energy transition. If you missed it, check out the livestream recordings of the conference.

In addition, E+ brought insights from the Brazilian experience to a side event on advancing green industrial investments, organised by the Brazilian Embassy and the German development agency, GIZ. Rewatch it here (E+ contributions at 00:49).

We were also delighted to welcome several of our other INETTT members to Berlin, where we took the opportunity to meet for dinner – an evening filled with great conversations, valuable insights on global developments and plenty else to catch up on! The diversity of our network truly shines through in moments like these, bringing together perspectives from around the world to leverage our collective expertise and experiences in developing energy transition solutions.

INETTT member Renewable Energy Institute’s international conference REvision 2025 in March brought together global energy experts to explore the accelerating pace of renewable deployment and the evolving role of the power sector in broader decarbonisation strategies. Hosted in Tokyo, Japan, the opening session highlighted global renewables trends – particularly the rapid expansion of solar – and reflected on how shifting geopolitical dynamics may shape the energy transition.

Key sessions linked power sector developments to regional revitalisation and industrial decarbonisation. Case studies in geothermal and offshore wind showcased how renewables are supporting local economies in Japan,

experts from government, academia and industry addressed the policy and infrastructure needs to scale offshore wind. The event also connected the clean power transition to industry, with discussions on building a green steel market and the power sector’s role in enabling deep decarbonisation across value chains.

As clean electricity becomes the backbone of decarbonisation, REvision 2025 reinforced the importance of aligning policy, investment and supply chains to unlock the full potential of the power sector in driving both regional development and industrial transformation. Representatives from other INETTT members Agora Energiewende and Agora Industry also took part.

As geopolitical tensions and the climate crisis converge, securing a resilient and sustainable energy future has become a critical priority for the European Union. At the conference “Sustainable energy security: Learning from the past, ready for the future” hosted on 2 April by INETTT member Forum Energii and the Permanent Representation of Poland to the EU, experts and policymakers gathered in Brussels to explore the foundations of a new European strategy for sustainable energy security.

energy security. Important pillars identified for this new approach are clean technologies, reduced dependence on fossil fuels and critical raw materials, improved energy efficiency, electrification, infrastructure protection, stronger EU integration and coordination – with solidarity and resilience as guiding principles. Such a new strategy would lead to lower energy bills, greater energy independence, cost savings and reduced emissions – delivering real benefits for EU citizens and advancing the energy transition.

Panel discussions underscored the urgent need for coordinated action to ensure affordable, stable and clean energy supply – reaffirming the central role of the power sector in Europe’s long-term resilience. Catch up on the conference via the recording available here.

Power Shift Africa’s report examines how entrenched interests and outdated narratives continue to shape Africa’s energy choices, often at the expense of sustainable development.

Using case studies and African perspectives, the report challenges the myth that fossil fuels are essential for progress, arguing instead that they hinder poverty reduction, climate resilience and inclusive growth. Despite accounting for just 3.8% of global emissions, Africa suffers disproportionately from climate impacts while receiving only 5% of global climate finance. The report links these inequities to colonial-era energy models that have left the continent with low access and high inefficiency.

A decisive shift toward renewable energy – now a cost-effective and viable alternative – is needed as the foundation for economic development, energy security and job creation.

Rejecting fossil fuels, the report argues, is not only environmentally necessary but also essential for achieving Agenda 2063, the Sustainable Development Goals and Africa’s long-term vision as a global actor by 2050.

GESI’s new issue brief reveals that South Korea’s fossil fuel subsidies – totalling nearly ten times the support for renewables – are significantly misaligned with the country’s 2050 net-zero commitment. An analysis of 2023-2024 government spending shows that most subsidies are directed toward oil, gas and fossil-based hydrogen, concentrated in the transport sector. The majority take the form of tax expenditures, primarily benefiting general consumers and producers, while support for vulnerable groups remains limited.

The study identifies seven key issues in South Korea’s fossil fuel subsidy system, including poorly targeted fuel tax cuts, ineffective transport subsidies that fail to promote electric vehicle adoption and strategic misalignment in hydrogen support. To address these issues, GESI calls for a phased elimination of inefficient subsidies, guided by principles such as necessity, inefficiency, regressivity, availability of alternatives and the potential for carbon lock-in. It recommends pursuing subsidy reform in alignment with Korea’s climate and

It recommends pursuing subsidy reform in alignment with Korea’s climate and energy transition goals, including redirecting untargeted tax benefits, improving fiscal transparency and adopting ex-ante evaluation tools.

This issue brief is an English summary of the original full report in Korean.

With Germany’s new government now in place, energy policy remains a pressing issue for policymakers and the public alike. To support well-informed debate, Agora Energiewende has updated its interactive dashboard, providing fact-based insights into the country’s energy transition – the Energiewende. The dashboard offers accessible data on topics such as the role of renewable energy sources, investment needs for climate neutrality and public opinion. It also covers Germany’s coal and nuclear phase-outs, energy security and competitiveness.

A hallmark of the Energiewende has been the rapid expansion of renewables, which now dominate Germany’s electricity mix. Renewables accounted for over 58% of generation in 2024, up from just 6% in 2000. While the fossil energy crisis drove up electricity prices in 2022 and 2023, 

renewables helped alleviate this by limiting price peaks, especially in 2022. Thanks to their stable, near-zero marginal costs, solar and wind have since continued to drive down electricity prices. To maintain momentum, it is now crucial to resolve remaining integration challenges – particularly at the distribution grid level – and to accelerate electrification across transport, buildings and industry to fully harness the benefits of renewable electricity.

GreenCape has released its 2025 market intelligence reports, providing timely, data-driven insights into South Africa’s fast-growing green economy. The reports focus on three high-impact sectors driving the energy transition: large-scale renewable energy, energy services and electric vehicles (EVs). Developed with support from UK PACT, the reports are designed to guide investors, businesses and policymakers through the evolving green investment landscape. Each report outlines key market trends, policy shifts, investment barriers and opportunities across the value chain.

This year’s edition highlights strong momentum in utility-scale renewables,

the rise of innovative energy services that boost resilience for businesses and municipalities and growing readiness for EV adoption, particularly in fleet and public transport applications. Together, these insights aim to support informed decisions and accelerate inclusive, climate-resilient growth in South Africa.

India’s Energy Overview published by Vasudha Foundation provides comprehensive monthly and yearly data and analysis of critical aspects of India’s energy sector. It examines key areas such as the primary energy mix, per-capita energy and electricity consumption and much more, offering valuable insights into the nation’s decarbonisation progress. By tracking, analysing and visualising trends across these areas, the data serves as an essential resource for policymakers, researchers and stakeholders seeking to

understand and address India’s energy challenges while supporting the country’s transition to a low-carbon economy.

SHURA’s report provides a critical analysis of Türkiye’s energy transition, focusing on the role of battery energy storage systems (BESS) in enhancing grid flexibility. As the country increases its renewable energy share, the report highlights how BESS can support the balance between supply and demand, optimising services like frequency regulation and managing generation imbalances. By examining the spatial distribution of battery technologies across Türkiye and their impact on the transmission grid, SHURA offers valuable insights and recommendations for effectively integrating these systems to maximise the use of renewable energy, ensuring a more reliable and flexible energy future for Türkiye.

INETTT and Agora training on data analytics for energy transitions Istanbul, 20-22 May

Later this month, INETTT and Agora Energiewende will host an exclusive in-person training in Istanbul for INETTT member think tanks. Over three days, participants will dive into energy system data analysis, visualisation and modelling fundamentals, tailored to support impactful, evidence-based policy work.

INETTT training on renewables
for energy transitions
Istanbul, 21-24 July

INETTT will be hosting a four-day, in-person training workshop on renewable energy, tailored for think tanks. As global decarbonisation efforts intensify, this training will help build foundational understanding of the role of renewable technologies in transforming the power sector. The course will cover key topics such as energy systems fundamentals, sector coupling, the economics of the power sector, and the political economy and socio-economic impacts of energy transitions. This training will equip participants to engage in informed discussions, enhance analytical work and support effective policymaking in their respective countries.

INETTT and I4CE joint workshop on national transition financing plans Online, 19 June

Developing countries will need USD 1.3 trillion annually by 2035 in external climate finance to meet climate and development goals – yet few have financing strategies to get there.

Later this month, INETTT and I4CE, our member think tank that is also co-lead of INETTT’s Finance Working Group, will convene a virtual workshop for INETTT member think tanks focused on climate-aligned budgeting and transition financing plans. Drawing on a ten-country review, the session will introduce key tools and concepts to help think tanks support governments in translating climate goals into investment roadmaps.

New INETTT website launching soon

We’re pleased to share that the INETTT website is getting a full revamp.

The new design will feature improved navigation, an up-to-date map to keep up with our think tanks' research, more content and a fresh look to better showcase our community and work. Launching soon – stay tuned!