Electricity Reinvented 2026

Redefining power systems through innovation Innovation is a key enabler of power system transformation – but technological advances alone will not suffice. How power systems are financed, regulated, managed and scaled-up will determine their performance and value to society. Innovation today is not linear: technologies evolve, combine and converge – and, when supported by effective policy and finance, can create new business opportunities and systemic value. In this briefing, innovative solutions are organized by two broad categories: –AI, digital and technological innovations are strengthening power systems end-to-end. Emerging AI applications – from generative (GenAI) and agent-based models to predictive maintenance – are improving planning, forecasting, operations and threat detection. Demand-side innovation, including flexible industrial loads, AI-driven energy management and behind-the-meter optimization, are becoming as important as supply-side advances in shaping system performance. On the grid side, advanced optimization methods, including quantum optimal power flow, are enhancing network decisions, while new digital tools support faster fault detection and improve resilience. –Business strategies and market innovations are accelerating the deployment and scale-up of these technologies. New contract structures, partnerships and business models are redefining how value is created and shared across the ecosystem. Market solutions, financial tools and regulatory innovation mobilize capital, reduce investment risk, strengthen project bankability and reward flexibility, often determining whether proven technologies scale up. Common standards and protocols allow distributed assets and digital tools to integrate seamlessly. Business strategies extend to supply chain resilience through strategic sourcing and contracting models that manage price volatility and support reliable delivery. For additional details, please refer to the Appendix.1 How power systems are financed, regulated, managed and scaled-up will determine their performance and value to society. Innovation in future power systems FIGURE 1 Financial toolsOutcomes for future power systems Innovation categories Grid infrastructure Market & regulatory solutionsPower assets & flexibility enablers AI, digital & technologyBusiness strategies & market solutions Data foundation & digital technologiesBusiness models Contracts & partnershipsAI & GenAISustainability Affordability Reliability & flexibility System resilience Socio-economic impact Institutional efficiency & transparency Business value Source: World Economic Forum.