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The urgent need to expand the UK’s energy grid for net zero
4/12/2024
5 min read
Comment
Building a grid able to distribute net zero electricity in the UK by 2030 is possible, but will require enormous cooperation by the relevant stakeholders, argues Joanna Carter, Head of Electricity Connections at EDF Renewables.
The UK stands at an important turning point in its aim to achieve net zero by 2030. As the shift to renewable energy gathers pace, the challenge of expanding and modernising the nation’s energy grid becomes ever more pressing. In its recent Electricity Grids and Secure Energy Transitions report, the International Energy Agency warned that meeting net zero goals will require over 80 million km of grid infrastructure globally by 2040. This is equivalent to the current existing global grid, and no small undertaking.
For the UK, this means taking immediate and strategic steps to strengthen our grid capacity. According to the Clean Power 2030 roadmap from the National Energy System Operator (NESO), reaching the Labour government’s 2030 net zero grid target is possible. However, this requires constructing twice as much transmission infrastructure in the next five years as was built in total over the last decade.
A robust grid ensures we can integrate intermittent renewable energy sources efficiently, with the flexibility necessary to make the best use of this clean energy. However, the required transformation goes beyond new infrastructure. We need a stable investment environment to fund these advancements, reformed regulatory frameworks to provide an agile industry, and the resources (both skilled and supply chain) to deliver an effective system.
The responsibility, therefore, lies not only with the government but also with key players in the energy sector, including the newly formed NESO, Ofgem, grid owners and developers to step up and work together with local communities.
Accelerate renewable development
For a number of reasons, including uncertainty over the pace of renewable deployment, the long-term investments in grid capacity required for the rapid integration of renewable energy have fallen behind growth in renewable generation. Couple this with a regulatory environment and connection processes that have led to lengthy wait times for grid connections, it is clear that the system must go through a rapid transformation.
To address this, we need streamlined, agile regulatory processes to speed up grid connections and the deployment of wind, solar and battery storage. High transmission system charges are currently acting as a significant barrier in some regions, particularly Scotland. Prioritising reforms that provide certainty and cap transmission charges are welcome and would help secure investment in, and delivery of, renewable energy.
In addition to the introduction of critical strategic reforms, NESO requires appropriately skilled resourcing and a robust supply chain to deliver and manage these new ways of working and address the immense challenges ahead. Its Clean Power 2030 report, upcoming Strategic Spacial Energy (SSEP) and Centralised Strategic Network (CSNP) plans are merely the start of a new environment.
For a number of reasons, including uncertainty over the pace of renewable deployment, the long-term investments in grid capacity required for the rapid integration of renewable energy have fallen behind growth in renewable generation.
Build more grid
The asset owners, both at transmission and distribution level, responsible for building most of the UK grid must continue to prioritise and accelerate the critical reinforcements. Previous lack of early investment and network futureproofing is now stalling the pace of clean energy deployment. Many renewable energy projects are currently waiting for a grid connection, with many other projects receiving unexpected delays in grid connection dates. The upcoming SSEP and CSNP will provide more holistic plans and routes forward to address these issues.
With such challenges ahead, collaboration, transparency and early engagement between grid companies and developers such as EDF Renewables is vital. Developers need ambitious but achievable connection dates. With this in mind, Ofgem’s recently published end-to-end review of connections is welcomed; in particular, its initial proposals to introduce stronger requirements/incentives on grid companies to keep to connection dates.
EDF Renewables looks forward to engaging with the review process further as Ofgem looks to ensure the regulatory framework supports efficient and timely connection to the grid through reasonable and stable connection costs and timely system access.
Match ambition with action
According to the Clean Power 2030 report, the UK will need to mobilise and deploy an average of over £40bn of investment annually in energy infrastructure over the next five years. To achieve this, ambition is not enough, and it is good to see the government starting to create the policy and investment environment to attract both national and international capital, and drive public-private partnerships to bring the latest technologies to the UK’s energy transition.
A stable and long-term policy environment is critical to catalyse action from the sector and investors, and accelerate innovation. For example, offering long-term visibility on Contracts for Difference (CfD) auctions – increasing the duration of contract from 15 to 20 years – would lower strike prices and provide greater financial security for developers. Additionally, creating a multi-year schedule for CfD allocation rounds with clear deployment targets would enable developers and investors to plan more effectively, reducing the uncertainty that currently plagues the market.
The UK has the potential to reach its 2030 net zero electricity target. The scale of opportunity for renewable energy and storage investment is vast. But success hinges on the ability of key stakeholders – government, Ofgem, the National Grid, developers working with local communities – to align their efforts and overcome the obstacles that lie ahead. The window for action is narrow but building the grid of tomorrow is possible and must happen now.
The views and opinions expressed in this article are strictly those of the author only and are not necessarily given or endorsed by or on behalf of the Energy Institute.
- Further reading: ‘Maintaining a stable electricity grid during the energy transition’. Renewable power sources impose many new demands on electricity grids built around large dispatchable point power generation sources, such as coal-fired power plants. Grid investment and expansion are not keeping pace with variable renewable energy deployment and the phase-out of dispatchable power capacity, creating associated risk to sensitive supply demand management needs, argues Debo Adams, Studies Manager, International Centre for Sustainable Carbon.
- Find out how responsible grid management could unlock the UK’s renewable energy potential.