In the next three decades, a new energy landscape dominated by volatile renewable sources is set to transform power systems worldwide. Following the release of the "Global Energy Transition Outlook 2023," DNV now presents its latest achievement in the field of power systems: the "New Power Systems" report. Let's delve into the key findings:

Surging Demand for Electricity and Renewable Energy:
Global economic growth, industrial electrification, and expanding data centers (especially driven by artificial intelligence applications) contribute significantly to the rising demand for electricity.
By the mid-century, electricity consumption is projected to account for 37% of global final energy consumption, up from 20% in 2023.
Wind and solar energy are expected to dominate, representing 50% and 70% of global electricity generation by 2040 and 2050, respectively. Nearly 90% of electricity will come from non-fossil sources.
Challenges and Strategies for Flexibility:
As renewable energy shares increase, flexibility and robust demand response systems become crucial.
The ninefold expansion of volatile renewable energy sources (VRES) demands short-term flexibility.
New auxiliary services, like synthetic inertia products and rapid frequency response, will emerge from changing demand in sectors such as heating and transportation.
Artificial intelligence and digitalization will play key roles in managing complex renewable-dominated power systems.
Energy Storage Solutions:
Lithium-ion battery technology will lead energy storage capacity, surpassing hydropower and pumped hydro by threefold by 2050.
Innovative market designs and advanced pricing schemes are essential to incentivize automated demand response, vehicle-to-grid (V2G) integration, and behind-the-meter storage systems.
The hydrogen value chain through water electrolysis holds promise for scalability.
Grid Expansion and Affordability:
Doubling global grid capacity by 2050 is necessary but challenging.
Grid enhancement technologies provide temporary relief, but long-term solutions require accelerated infrastructure development and advanced control systems.
Despite increased grid spending (25% of annual energy expenditure by 2050), most regions will maintain stable or reduced consumer grid costs.
The "green dividend" allows governments to accelerate energy transition while maximizing benefits.
Holistic Thinking for Decarbonization:
A comprehensive approach considers energy generation, transmission, consumption, and cross-energy carrier storage.
Planning new wind farms must include grid connection strategies.
Ground-level power transmission and integration of new power lines require IT upgrades for most control centers.
In summary, the path to a decarbonized energy system demands investment, innovation, coordination, and government commitment. As we move toward a greener future, a systematic and forward-thinking approach is essential for successful energy transformation. 

This report builds upon DNV's "Global Energy Transition Outlook 2023," combining insights from demand modeling, grid analysis, new market models, digitalization, and AI. It explores market mechanisms, congestion solutions, cost trajectories, and strategies for expanding transmission and distribution networks.