Low-carbon transition of states and state-owned power companies

What this event is about

State-owned power companies (SPCs), whether monopolies in vertically integrated systems or dominant players in competitive markets are central to the low-carbon transition of the power sector due to their unique status. 

Carbon emissions from electricity generation are at an all-time high, comprising 38 percent of global emissions in 2023. Ongoing coal-fired power plant expansions in major emitting countries exacerbate coal exit challenges. Although wind and solar photovoltaics hold significant decarbonisation potential, they face integration barriers.

SPCs, which often control extensive fossil fuel assets but can also invest significantly in renewables, are vital change agents for the energy transition. Yet SPCs face a distinct operational dilemma in ensuring electricity supply security, affordability and sustainability. Recognising their critical role in global decarbonisation, Agora has organised two conferences since 2022 to address the dynamic transition challenges faced by SPCs and explore their potential pathways for transforming the power system in a cleaner direction. 

This report summarises the results of the second of these two conferences. The event was an in-person, closed-door session held under the Chatham House Rule. It explored key topics of electricity supply security and affordability, including the role of fossil gas. It also touched on financing power system transformations, and how SPCs and the private sector interact. The event also addressed the topic of Just Energy Transition Partnerships and China's role in the energy transition of SPCs.