{"id":2074,"date":"2025-10-20T14:15:36","date_gmt":"2025-10-20T19:15:36","guid":{"rendered":"https:\/\/blogs.edf.org\/markets\/?p=2074"},"modified":"2025-10-20T14:37:43","modified_gmt":"2025-10-20T19:37:43","slug":"mcet-pre-cop30-seminars-shared-pathways-toward-a-just-power-sector-transition","status":"publish","type":"post","link":"https:\/\/blogs.edf.org\/markets\/2025\/10\/20\/mcet-pre-cop30-seminars-shared-pathways-toward-a-just-power-sector-transition\/","title":{"rendered":"MCET Pre-COP30 Seminars: Shared Pathways Toward a Just Power Sector Transition"},"content":{"rendered":"

This blog was authored by Rodrigo B\u00f3rquez<\/a>, economist of the Multi-Country Electricity Transition (MCET)\u00a0network and the Climate Action Teams (CAT) initiative, and by Environmental Defense Fund economist Luis Fern\u00e1ndez Intriago<\/a>.<\/em><\/p>\n

On October 14, the international network <\/span>Multi-Country Electricity Transition (MCET)<\/span><\/b> held two parallel seminars focused on the electricity transition in <\/span>Asia and Latin America<\/span><\/b>. These sessions\u2014part of the Pre-COP30 series organized by the <\/span>Economics team at Environmental Defense Fund (EDF)<\/span><\/b>\u2014brought together researchers, institutions, and decision-makers from the MCET ecosystem to share progress, reflect on common challenges, and project a more integrated agenda for a just transition.<\/span>\u00a0<\/span><\/p>\n

As the climate crisis demands the <\/span>accelerated decarbonization of the power sector<\/span><\/b>, particularly in emerging economies, it becomes essential to develop tools that support informed, equitable, and viable transitions. Open planning models, policy assessments, and institutional coordination are key elements to transform global goals into actionable national pathways.<\/span>\u00a0<\/span><\/p>\n

Within this context, the MCET seminars invited us to look <\/span>beyond modeling<\/span><\/b>, and ask: <\/span>how can technical tools genuinely connect with the social, territorial, and political realities of our countries?<\/span><\/b>\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Two regions, one shared conversation<\/span><\/b>\u00a0<\/span><\/p>\n

In the <\/span>Latin America<\/span><\/b> session, <\/span>Manuel Portilla<\/span><\/b> (Vinken, Chile) presented a study exploring the potential of <\/span>demand response<\/span><\/b> to increase power system efficiency and reliability in Chile, Colombia, and Vietnam. Using the SWITCH model, his analysis showed how flexible demand can reduce costs, support renewable integration, and enable more active citizen participation in electricity markets.<\/span>\u00a0<\/span><\/p>\n

From Honduras, <\/span>Paola Sof\u00eda Acevedo Alvarado<\/span><\/b> (Sustenta Honduras) presented a pioneering effort to incorporate <\/span>territorial justice<\/span><\/b> into long-term energy planning models. Through the development of SWITCH-Honduras, her work demonstrates how expansion scenarios can avoid harming protected areas or infringing on Indigenous rights, proposing a path that aligns climate action with territorial equity.<\/span>\u00a0<\/span><\/p>\n

In the <\/span>Asia<\/span><\/b> session, <\/span>Thuy Doan<\/span><\/b> (Fulbright University Vietnam) analyzed the impact of various <\/span>electricity pricing schemes<\/span><\/b> on demand behavior, consumer welfare, and system efficiency in Vietnam. Her study suggests that structures like Time-of-Use (TOU) and hybrid models can be key to achieving carbon neutrality, but must be supported by investments in data systems and grid infrastructure.<\/span>\u00a0<\/span><\/p>\n

Meanwhile, <\/span>Dr. Tarun Sharma<\/span><\/b> (IIT Roorkee, India) explored five <\/span>demand-responsive pricing strategies<\/span><\/b> in India, aimed at shifting consumption to hours with higher solar generation. His approach connects energy modeling with realistic policy design, contributing to better system management and improved renewable integration.<\/span>\u00a0<\/span><\/p>\n

 <\/p>\n

Open models, just transitions<\/span><\/b>\u00a0<\/span><\/p>\n

Though grounded in distinct national realities, all four studies share a common belief: <\/span>energy modeling can be a powerful tool to inform decision-making<\/span><\/b>, but only when it is linked to each country\u2019s institutional, social, and territorial context.<\/span>\u00a0<\/span><\/p>\n

Throughout the sessions, participants acknowledged that while tools like SWITCH allow for robust scenario simulations and decarbonization pathways, <\/span>their real-world impact depends on how they align with local capacity, institutional frameworks, and justice-based approaches<\/span><\/b>. <\/span>This intersection presents challenges\u2014but also transformative opportunities.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Connecting energy transitions to broader economic realities<\/span><\/b>\u00a0<\/span><\/p>\n

While energy system models provide critical insights into technology pathways and system optimization, the MCET seminars underscored a fundamental truth: power sector transitions are inseparable from broader macroeconomic dynamics. Decarbonization decisions reshape employment patterns, redirect capital flows, alter government revenues, and redefine regional economic development. The demand response strategies explored across Chile, Colombia, Vietnam, and India raise questions about which industries and households can shift consumption and how costs distribute across income groups. Honduras’s territorial justice approach shows that protecting indigenous territories preserves not just rights and ecology, but economic systems and livelihoods outside conventional GDP accounting. The comparative Asian analysis reveals that transition costs vary dramatically by national context\u2014essential insights for climate finance and burden-sharing frameworks.<\/span>\u00a0<\/span><\/p>\n

Yet a critical dimension remains underexplored: the labor market. Coal miners, gas plant operators, and fossil fuel supply chain workers transitioning to new livelihoods. Skills gaps and wage differentials. Regional disruption in fossil fuel-dependent communities. These employment transitions are where “just transition” began conceptually, and they deserve systematic integration into energy system analysis. As the MCET network moves forward, bridging energy modeling with economy-wide perspectives\u2014incorporating labor markets, fiscal dynamics, and development pathways\u2014will strengthen the policy relevance of this work.<\/span>\u00a0<\/span><\/p>\n

\u00a0<\/span><\/p>\n

Available resources<\/span><\/b>\u00a0<\/span><\/p>\n