Advanced Asia and Oceania: innovation for flexibility and decarbonization Advanced Asia and Oceania – including Australia, Japan, South Korea and New Zealand – focus on system flexibility, reliability and decarbonization, driven by mature systems, high per-capita demand and ambitious net-zero targets. Australia leads in distributed solar and is advancing its National Battery Strategy to make storage central to its clean energy transition.47 Japan targets 40-50% renewable electricity by 2040 while maintaining nuclear for system stability.48 South Korea is scaling-up renewables and storage to meet its 2050 net-zero goal, supported by hydrogen and offshore wind strategies.49 Across the region, innovation aims to manage high shares of variable renewables while safeguarding reliability. AI-driven forecasting, demand-response platforms and advanced inverter support system balance. In Australia, digital controls and behind- the-meter batteries are transforming households into active grid participants. Japan and South Korea are adopting real-time demand forecasting and flexible market mechanisms to improve system reliability under decarbonization constraints. As these systems mature further, the region is likely to pioneer digital, storage and hydrogen-based solutions that can demonstrate how high-renewable, fully electrified power systems operate reliably at scale. Middle East: innovation in using digital to meet demand growth with low-carbon sources The Middle East faces rising pressure from growing energy demand. Economic growth, population increases and hotter weather are driving up demand for electricity, cooling and desalinated water. Nearly 95% of the region’s power still comes from oil and gas – the highest share globally – and demand growth risks pushing fossil fuel use even higher despite exceptional solar resources.50 In 2023, clean energy made up just over 20% of power sector investment in the Middle East, while transmission and distribution accounted for about 40%.51 The UAE and Saudi Arabia are positioning themselves as regional transition leaders with major investments in renewables and low-carbon projects. Both are expanding utility-scale solar and wind and have begun integrating storage to manage intermittency.52,53 Meanwhile, traditional petrostates such as Kuwait and Qatar are to a larger extent relying on natural gas as their bridge to lower-carbon power.54,55Innovation focuses on digitalization and distributed resources, from AI-enabled forecasting and digital grid management to expanded distributed solar and storage. Blended finance is helping unlock investment in renewable and storage infrastructure. Progress will likely depend on improving grid flexibility, scaling-up digital tools and attracting capital for renewables and storage to manage fast- rising demand and intensifying climate pressure.56,57 Africa: innovation in decentralized access and digital planning Africa’s installed power capacity reached 260 GW in 2024, a 2.4% year-on-year increase. Clean energy accounted for 68.8 GW, while fossil fuels – particularly gas – still dominate the power mix, accounting for around three-quarters (190 GW) of total capacity. Coal remains the backbone of electricity generation in South Africa;58 meanwhile North African systems rely heavily on gas, although solar and wind investment is rising in countries such as Morocco and Egypt. Nuclear offers long-term potential but faces financing and regulatory hurdles. Energy access remains the overriding priority in Africa: 600 million people still lack electricity and nearly 1 billion lack clean cooking.59 North African countries have higher access, but affordability, reliability and rural gaps persist. Frequent outages, currency depreciation and high financing costs limit the ability to modernize grids and expand clean energy. Debt service absorbs more than 85% of total energy spending and Africa attracts only around 2% of global clean energy investment despite representing 20% of the world’s population.60 Innovation is becoming more decentralized and digital. AI and GenAI planning tools map least-cost electrification pathways, while smart metering, digital controls and grid-monitoring systems help cut losses and manage intermittency.61,62 Mini-grids, distributed solar and hybrid storage systems are expanding across Sub-Saharan and North African countries, supported by blended finance structures that combine concessional and private capital.63 These approaches are linking digital planning, distributed energy and flexible finance to close access gaps and build more climate-resilient, investor-ready infrastructure. Looking ahead, progress will depend on scaling-up decentralized solutions, strengthening distribution networks and mobilizing more diverse finance. Digital planning, blended finance and locally tailored energy systems will be critical for building resilient grids and achieving universal electrification. In 2023, clean energy made up just over 20% of power sector investment in the Middle East, while transmission and distribution accounted for about 40%. Across the advanced Asia and Oceania region, innovation aims to manage high shares of variable renewables while safeguarding reliability. Debt service absorbs more than 85% of total energy spending and Africa attracts only around 2% of global clean energy investment despite representing 20% of the world’s population. Electricity Reinvented: How Innovation is Transforming the Future of Power Systems 12

Electricity Reinvented 2026