G7 Power Systems Scorecard

France has one of the lowest fossil fuel shares and carbon intensities of the electricity mix, strengthened by an extensive set of policies promoting systems flexibility and energy efficiency. It shows commendable effort on demand side management, digitalisation, and the renovation of buildings. France also is a member of key international initiatives supporting power systems decarbonisation. However, the focus on its ageing nuclear fleet and permitting delays are major obstacles to the deployment of renewables, leading to 2030 renewables targets which are not in line with

Canada, with its significantly clean electricity grid and low-carbon capacity, is well positioned to further decarbonise its grid. Canada is on track to phase out coal fired generation by 2030, however, there is significant new unabated gas fired generation being proposed in some provinces. 

The upcoming Clean Electricity Regulations, Canada’s goal of 90% non-emitting generation by 2030, Canada’s large emitter trading systems, and federal funding for clean energy investments are crucial for achieving a net zero grid by 2035. While some provinces are also taking action and have announced targets for adding renewable capacity, others such as Alberta have been taking steps that deter renewables deployment. Provinces reliant on gas fired generation in particular can benefit from the reliability and affordability of a decarbonised grid. They need to increase their renewable energy share, expand transmission, enhance storage, promote end use flexibility, and improve energy efficiency.

Germany scores relatively well across most indicators with an exception for ending fossil fuel dependencies. The latter is the result of historically high shares of coal in the power mix, a decision to phase out nuclear power before fossil power and, most importantly right now, a significant pipeline of new gas plants to provide back-up capacities when coal is phased out. Germany’s overall good score is thanks to strong recent growth of variable renewables, and adopted policies to ensure a continuous high growth rate of renewables, grid expansion, improving digitalisation, and investments in renovation. A strong showing in international leadership, together with several EU policies in the area of energy efficiency and standards, as well as the promotion of non-thermal flex under new EU power market rules, further strengthen Germany’s score.

The UK is not currently on track to have a net zero power system by 2035, but has good latent potential to achieve that target – and potentially even sooner. The country must continue to build out the full pipeline of potential offshore wind, and remove barriers to scaling onshore wind and solar. It must also focus on scaling low-carbon assets, such as demand side flexibility and long-duration storage, as well as removing barriers in the planning system and grid network. Commendably, the UK is set to entirely stop using coal in power generation – but does not yet have a clear plan to do the same with gas and is in fact building new stations. More focus on decarbonising buildings will also support the development of a low-cost, efficient net zero power system.

Under the Biden administration, the United States has seen a dramatic shift towards meeting international climate obligations and building its renewable energy capacity as it works to attain a carbon-free electricity sector by 2035. The Bipartisan Infrastructure Bill, the Inflation Reduction Act, and numerous executive actions have endowed the Department of Energy (DOE) and the Federal Energy Regulatory Commission (FERC) with new funds and certain new authorities respectively to accelerate the development of green energy technologies and their integration into America’s existing electrical grids. 

The US is already championing some areas key to power systems decarbonisation. Among them are policies facilitating long-term storage ramp-up, and the Environmental Protection Agency’s (EPA) recently adopted regulations might prove to be among the first within the G7 towards facilitating a phase-out of both unabated coal and gas fired generation. However, the US is working from a very low renewables base and needs to address the poorly connected and ageing grids systems. The scope and speed of change needed within the next decade is so far not reflected in either the country’s renewable project pipeline or federal policy implementation on the state level in many states. 

The Italian power sector is to this day heavily dependent on fossil resources, as more than 50% of electricity is generated by burning fossil gas, oil or coal. While there is a phase-out date for coal, at the latest in 2028, a phase-out plan for fossil gas is still missing. It strongly depends on the policy framework and in particular the way investments in renewables will be mobilised in the near future. 

The recent energy crisis sheds a new light on the need to accelerate RES deployment. In its draft National Energy and Climate Plan (NECP), Italy committed to install additional RES capacity of about 70 GW. Although the 2030 goal for renewable energy share is aligned with the EU Green Deal, it is lower than that suggested by IEA to reach at least 80% electricity generated from low-carbon sources. In 2022 and 2023 Italy manged to increase its RES installation rate, which is getting closer to what is required to achieve the 2030 goal. 

When it comes to the 2035 net zero power ambition, Italy needs to define a clear delivery roadmap to be adopted in national policies. Specifically, there is a lack of a strategy and specific actions for implementing flexibility technologies and developing a smarter power system. Gas still plays a disproportionate role in the country’s decarbonisation agenda – both domestically and in its diplomacy.

Although faring relatively well on energy efficiency, Japan currently has the highest share of fossil fuel-based generation of any G7 country. It also has the highest share of coal power as well as no coal phase-out date, so has a long way to go to decarbonise its power sector. Japan’s goal for renewable energy share in 2030 is also lower than that of most other G7 countries, falling short of reaching the IEA’s milestones of 60% renewable energy in the power mix by 2030. As such, the power sector is not adequately contributing to Japan’s emissions reduction targets. Research by Bloomberg NEF shows that Japan’s current emission reduction trajectory is not on track to meet its 2030 goal of 46% emissions reduction from 2013 levels, nor net zero by 2050. ​

Japan’s approach to the energy transition is fundamentally distinct to that of its G7 counterparts. Japanese officials promoted the concept of “various pathways toward a common goal” at their G7 Presidency in 2023, and are promoting these narratives to developing countries in Southeast Asia, spurred on by vested industry interests. Support schemes like those in the Asia Zero Emissions Community (AZEC) include financing fossil-based technologies; these might be perceived as impeding the regional transition away from fossil fuels.