New guide charts path to modern grids across the world
Agora and partners launch the Grid Policy Toolkit in the lead-up to COP31 where clean electrification will be high on the agenda. From updated grid codes to flexible operation and digitised coordination, it helps policymakers draw roadmaps that deliver cheap, clean energy for households and companies.
At COP31 taking place in November, countries are expected to adopt a landmark global electrification target. A new comprehensive resource helps governments turn this ambition into action. Developed by a coalition of leading energy and climate think tanks, the Grid Policy Toolkit provides a practical, step-by-step guide for modernising electricity grids – the critical infrastructure which determines whether electrification goals are met, and cheap clean electricity reaches households and businesses.
The timing is crucial. As electricity demand surges and solar and wind reshape power systems, ageing grids are becoming the bottleneck of the energy transition. It leads to slower economic growth as industries wait years to connect, renewable projects stall – and consumers pay more. Planning smarter grids today will maximise the use of existing lines for decades to come. Flexible demand is one of the biggest levers: when factories, buildings and electric vehicles can shift usage to hours when power is cheap and lines have capacity, the grid works harder for the same money.
Why grids matter
Modern grids integrate domestic clean energy reliably, withstand shocks and reduce dependence on imported fuels. As recurring fossil energy crises send shockwaves across economies, ensuring renewable energy flows smoothly to end users is more urgent than ever. Grids are furthermore key enablers of competitive economies. Every new factory, electric fleet, data centre and household wants to plug in, and the speed of that connection now directs investment and job creation. Crucially, strong grids are about affordability. A well-run grid puts cheap clean energy within reach of families and businesses alike. It also allows sharing costs transparently and protecting those least able to absorb change as tariffs and technologies evolve.
Every sector depends on the grid – and can help it
The toolkit takes a distinctive cross-sectoral approach. Power, industry, transport and buildings each have specific needs from the grid. And each can offer flexibility that makes the system cheaper to build and run. Industry can shift demand and absorb surplus renewable output. Transport can charge smartly and, eventually, feed power back. Buildings can flex heating and cooling, host rooftop solar and batteries, and reduce peak demand through efficiency.
Built for action
The toolkit is written for policymakers and regulators and for those who work with them, from advisers to civil society organisations, researchers and industry. It maps the full policy agenda across four domains – planning, deployment, operation and enabling conditions –, nine policy objectives and 27 recommendations. The feasibility of the provided tools is illustrated with good practices from around the world.
The four domains are sequenced across three stages of grid modernisation. The first stage covers modern planning methods, updated grid codes and connection rules, alongside visibility of the grid. Stage two explores flexible operation, forward planning, and outcome-based rewards for grid companies. Stage three addresses the transformation through digitalised, automated coordination of millions of distributed energy resources.
Looking ahead
As the world moves decisively on electrification, governments have a critical opportunity to seize the moment: the plans are ready, the practices proven, and the need urgent. By turning the hard-won lessons from across the world into one practical, action-oriented resource, the toolkit gives policymakers and regulators a clear path to move faster, together. The grid built the world as we know it. A modern one will power the societies of tomorrow, the authors conclude.
The Grid Policy Toolkit is developed by Agora Energiewende, Agora Industry, CLASP, GBPN, ICCT, ITDP and RAP. Working across power, industry, transport and buildings, these organisations are members of the Crux Alliance.
The Grid Policy Toolkit will be discussed at two events at COP31:
- Renewables, Modern Grids, and Just and Affordable Electrification: What, Where and for Whom? - Monday, 9 November 2026 at 15:00–16:30 TRT/ 13:00-14:30 CET
- Modern Grids as the Backbone of Secure, Affordable and Clean Electrification - Tuesday, 10 November 2026 at13:00-14:00 TRT/ 11:00-12:30 CET
