Digital financial inclusion, the belt and road initiative, and the Paris agreement: Impacts on energy transition grid costs

• The study explores the determinants of energy transition grid cost. • We propose novel kendall and spearman wavelet cross-quantile correlation methods. • Digital financial inclusion, the BRI, the paris agreement reduce the grid cost. • Artificial intelligence also supports the sustainable energy future. • GCOVOL significantly escalates the grid cost. We investigate how digital financial inclusion, the Belt and Road Initiative, and the Paris Agreement influence the energy transition grid cost. We propose two new Kendall and Spearman wavelet cross-quantile correlation methods and utilize data from June 1, 2018, to July 31, 2024. Our findings indicate that digital financial inclusion, the Paris Agreement, and artificial intelligence significantly reduce grid costs in the short and long run. Additionally, the Belt and Road Initiative has substantial potential to decrease grid costs, particularly during bullish market conditions in the long run. Conversely, GCOVOL significantly increases grid costs, especially in the long run.