IRENA urges governments to accelerate renewable energy resilience amidst global supply chain disruptions

The International Renewable Energy Agency (IRENA) has called on governments worldwide to cut back or ease tariffs and other trade barriers on imported renewable energy equipment. They argue that the recent surge in fossil fuel prices is yet another familiar signal of how vulnerable economies remain to outside shocks.

In a fresh policy advisory, IRENA suggests that the current energy crisis should be seen as an opportunity, one to reinforce energy security by investing in cleaner, more decentralized power systems. The agency lays out a layered approach, with recommended actions to be taken immediately, within the coming year, and over a longer horizon. The main message? Resilience depends not just on increasing renewable capacity, but also on accelerating energy storage, upgrading grids, managing demand, and electrifying transport and heating.

This advice is especially timely as governments across Europe, Asia, and parts of the Middle East are under renewed pressure from fuel supply challenges and rising prices, exacerbated by the ongoing conflict in the Middle East. According to the OECD, the conflict has again heightened concerns about the Strait of Hormuz, a strategic chokepoint that, in 2025, facilitated roughly one-fifth of global oil production. This has increased worries over oil price swings and the broader economic fallout if shipping routes are disrupted.

In the short term, IRENA emphasizes keeping critical services operational with less dependence on diesel and imported fuels. It advocates for faster deployment of distributed renewable energy systems, especially in areas like hospitals, schools, and other public infrastructure that need reliable backup or standalone power. Moreover, the agency promotes scaling up solar PV and battery mini-grids, particularly in regions that are off-grid or have weak grids, areas often heavily reliant on diesel generators, which expose users to price volatility and potential supply disruptions.

The agency also urges governments to back this expansion with supportive financing, streamlined logistics, and clearer regulations. It highlights the importance of public campaigns and demand-side measures, such as reducing consumption during peak hours when system stress is highest. One specific suggestion is to accelerate time-of-use pricing, encouraging households and businesses to shift their electricity demand to times when renewable generation peaks and prices are lower.

Transport is a significant focus as well. IRENA recommends enhanced fiscal incentives, grants, subsidies, and tax breaks, to speed up the electrification of various transport modes. In particular, it underscores the need for quicker adoption of electric bikes and scooters in emerging markets, along with increased support for electric buses and other forms of public transit. Additionally, it advocates for urban planning that favors shared mobility options and investment in mass transit, aiming to reduce dependence on private vehicles.

Interestingly enough, this stance aligns quite closely with a separate report from the International Energy Agency (IEA). The IEA’s analysis lists ten demand-side measures that governments, firms, and consumers can swiftly implement to help mitigate the effects of rising oil prices. The focus, mostly, is on road usage, which accounts for roughly 45% of global oil demand, but also touches on aviation, cooking, and industrial sectors. Both agencies seem to be signaling that addressing demand, through smarter consumption, is just as critical as increasing supply to bring relief.

Looking ahead into the medium term, IRENA encourages policymakers to keep renewable energy projects and grid upgrades on track, despite current economic pressures. It cautions that pipeline projects need continued funding, even as inflation and supply chain hiccups drive up costs. The agency advocates reviewing and adjusting existing policies and financial tools to function effectively amid heightened market volatility.

In this middle phase, storage and grid flexibility are vital. IRENA calls for stronger incentives to boost battery storage, demand response strategies, and other balancing technologies that can help grids accommodate increasing amounts of solar and wind energy. It also stresses the need for improved grid infrastructure technologies to remove bottlenecks, challenges that are already limiting how much new renewable capacity can be effectively connected.

Expanding renewable heating solutions is another key recommendation. This includes promoting biogas and biomethane, produced from waste and residues, along with residential heat pumps, solar water heaters, and, where feasible, district heating networks. The bigger goal here is to reduce dependence on imported fuels not only for electricity but also in building heating and industrial processes.

This push for policy change is happening amid growing concerns about the fragility of supply chains for the clean energy transition. S&P Global reports that the Middle East conflict has affected supply routes for renewable energy components, both directly and indirectly, leading to shortages and price increases in vital materials like aluminum and copper. These metals are essential for manufacturing solar panels, wind turbines, transmission infrastructure, and batteries. So, in a way, the crisis is testing the clean energy industry but simultaneously emphasizing the importance of decarbonization initiatives.

Interestingly enough, some analysts believe this kind of upheaval might actually accelerate parts of the renewable shift. The World Economic Forum has noted that past energy crises often serve as catalysts for strategic change, prompting governments to act faster on decarbonization and electrification. That perspective aligns with IRENA’s overarching view: that energy security and climate objectives are increasingly intertwined and mutually reinforcing.

For Gulf economies like the UAE, this connection is especially relevant. Although the region remains heavily dependent on hydrocarbons, it’s also making big investments in solar power, grid modernization, storage, and environmentally friendly industries. So, in many ways, IRENA’s guidance reads less as a last-minute emergency alert and more as a reminder of the path many nations are already on. The real challenge? Making sure these transitions are resilient enough to withstand future shocks, because, let’s be honest, it’s all about preparing for the long haul, not just the immediate fix.