Integrated infrastructure planning improves the economic viability and bankability of energy projects by enhancing cost efficiency, mitigating risks, attracting investment and providing regulatory certainty. Fostering international cooperation 4.4 Effective implementation of energy transition projects requires a consistent framework for defining energy transition. Clear standards for emissions and energy benchmarks are essential to ensure all regions work towards the same sustainability goals. Governments must collaborate with industry to establish laws and regulatory frameworks that reduce uncertainty, such as global emissions standards, carbon pricing mechanisms and benchmarks for renewable energy and energy efficiency.International cooperation is crucial for adopting energy transition technologies in developing countries, providing training and supporting project development. Currently, there is no universally accepted definition for many aspects of the energy transition, nor consensus on which industries need to reduce emissions. For example, the EU’s programme for blending sustainable aviation fuel (SAF) with conventional jet fuel is not universally adopted or enforced. Establishing well-defined and stable criteria can reduce uncertainty and create a clearer path for investment.4.3 Integrated infrastructure planning The energy transition requires rapid development, making it essential for governments and utilities to consider the entire energy system holistically. For example, governments can identify and designate land areas available for renewable projects to increase certainty and speed up project development, as is the case in Central Asia and in Gulf Cooperation Council (GCC) countries. In addition, advance investment can be made in transmission and distribution networks to ensure system integration of future power generation and demand, avoiding bottlenecks in grid connection and transport. Integrated infrastructure planning considers the entire energy infrastructure, including transmission capabilities, storage systems and system load demands, to ensure efficient energy planning. This approach improves the economic viability and bankability of energy projects by enhancing cost efficiency, mitigating risks, attracting investment and providing regulatory certainty. By connecting the grid more effectively, governments can share generation capacity across regions, reducing the need for additional capacity and accommodating future demand more efficiently. Increasing population growth and rising energy demand from technologies such as artificial intelligence add pressure to the system. Leveraging interconnected grids to diversify renewable energy supply sources allows for more efficient energy distribution, helping to meet future demand without immediately requiring additional large-scale infrastructure.41 Failing to account for these interconnected elements can lead to inefficiencies and undermine the overall stability and reliability of the power grid. Financing the Energy Transition: Meeting a Rapidly Evolving Electricity Demand 24

Financing the Energy Transition 2025