The global transition to renewable energy stands at a critical juncture. At COP28, the G20 reaffirmed its ambitious commitment to triple global renewable energy capacity and double energy efficiency by 2030. However, while the urgency for climate-compatible energy markets is clear, systemic governance challenges across the power systems of G20 countries continue to obstruct these goals. This policy brief highlights the importance of transforming power system governance to foster transparency, inclusiveness, and fairness for renewable energy stakeholders. 

Two prominent cases – Republic of Korea and Mexico – illustrate the structural challenges faced in both the Global North and South. In both countries, policy reconfigurations and entrenched near monopolies have disrupted the pace of renewable energy development, creating unfavorable market conditions for renewable energy. Mexico’s reliance on the state-owned utility, Comisión Federal de Electricidad (CFE), and Korea’s vertically integrated market under Korea Electric Power Corporation (KEPCO) have restricted renewable energy players from accessing decision-making processes and market mechanisms. This policy brief emphasizes the need for energy governance reforms in the G20 countries, including preventing conflicts of interest, establishing independent regulatory frameworks, and ensuring equitable stakeholder participation to drive renewable energy expansion. 

These actionable policy recommendations urge the G20 to take leadership in: 

1. Unbundling the power sector to prevent monopolistic practices and financial conflicts of interest. 

2. Strengthening regulatory independence to monitor market behavior and foster fair competition between fossil fuels and renewables. 

3. Encouraging inclusive decision-making by integrating renewable energy stakeholders into market governance structures. 

These interventions are essential not only to accelerate national transitions but also to align energy policies with global commitments, including the Paris Agreement. A transparent, well-regulated energy sector will promote reliable project financing, attract investment in renewables, and reduce the risks associated with monopolistic practices.