certainty of impacts, and the political and institutional
feasibility of the change . . . . . . . . . . . . . . . . . . . . . . . . . . . . 545
Fig. 58
The choice between evolutionary and revolutionary
change is context-dependent. . . . . . . . . . . . . . . . . . . . . . . . . 545
Fig. 59
Evolutionary and revolutionary change can differ with
regard to all aspects of scheme design . . . . . . . . . . . . . . . . . 546
Fig. 60
Sequencing of evolutionary and revolutionary
approaches to creating carbon units . . . . . . . . . . . . . . . . . . . 547
Fig. 61
Sequencing of evolutionary and revolutionary
approaches to distribution . . . . . . . . . . . . . . . . . . . . . . . . . . 548
Fig. 62
Sequencing evolutionary and revolutionary approaches
to governance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 550
Fig. 63
Example of system balancing with network constraints . . . 559
Fig. 64
Future electricity grids will be shaped by two broad
trends: decarbonisation and decentralisation . . . . . . . . . . . . . 561
Fig. 65
The transmission system operator (TSO) and
independent system operator (ISO) are the two main
alternative institutional models for system ownership and
operation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 563
Fig. 66
Several countries shifted to the TSO and ISO models as
they liberalised their electricity markets . . . . . . . . . . . . . . . . 564
Fig. 67
Under the RPI-X mechanism, the TSO takes measures to
decrease its costs because it retains revenues from cost
savings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 565
Fig. 68
Nodal pricing reflects the cost of supplying additional
electricity at a given node . . . . . . . . . . . . . . . . . . . . . . . . . . 568
Fig. 69
UK offshore wind farm zones identified for development
of renewable energy capacity . . . . . . . . . . . . . . . . . . . . . . . . 571
Fig. 70
There are several possible models for coordinating
distributed energy resources . . . . . . . . . . . . . . . . . . . . . . . . . 573
Fig. 71
A coordinated approach can ensure efficient investment
in electricity system resources . . . . . . . . . . . . . . . . . . . . . . . 575
Fig. 72
A microgrid contains generation and flexible resources,
as well as sources of electricity demand. . . . . . . . . . . . . . . . 577
Special Report 5: International Energy Cooperation and Governance
Fig. 1
Strategic path for international energy cooperation. . . . . . . . 594
Fig. 2
The two key variables within which China’s future
strategic international actions should be considered . . . . . . . 602
Fig. 3
Cumulative number of climate laws passed in
159 countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 604
Fig. 4
Global primary energy consumption by fuel type,
1850–2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606
Fig. 5
Share of global fossil fuel consumption growth by
country, 2000–15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 606
Fig. 6
Global energy mix . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 607
Fig. 7
Global electricity generation. . . . . . . . . . . . . . . . . . . . . . . . . 608
xxxii
List of Figures
xxxii