Lighthouse | ICE Viewpoint
The UK is not alone when it comes to grid capacity challenges
In late November, chancellor Jeremy Hunt set out the government’s latest spending plans in the 2023 Autumn Statement.
Hunt’s announcements focused on supply-side reforms to the economy, including changes to the planning system for the electricity network.
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He confirmed that the government is acting on the electricity networks commissioner’s proposals to accelerate the deployment of new energy infrastructure.
The aim is to halve how long it takes to build new transmission infrastructure from around 14 years to seven. This is critical to achieve the scale of delivery required for net zero.
A modern, smart and expanded grid will be essential for a successful energy transition to net zero. Delays to building this infrastructure mean:
- Slower grid decarbonisation
- Slower shift to decentralised power and storage
- Slower shift to a hydrogen economy
- Slower build-out of charging infrastructure for electric vehicles
- Slower housebuilding.
Britain’s grid system has only had one upgrade since its inception in 1935, having used every available ounce of fat to keep it working so far.
Energy systems have traditionally operated with one-way energy flows from energy generators to users.
But now the system will need to transition from transporting power from a few large, centralised power stations, to one with millions of flexible assets.
It is only very recently that policymakers have become attuned to the fact that the UK will have to undergo a fundamental system change in moving from one energy system to another and will need all the associated transmission and distribution infrastructure.
In fact, the government’s Energy Security Strategy, published in April 2022, barely mentioned this.
More than 70 countries have net zero targets and are competing for the same talent and resources when it comes to the energy system transition. This means that certainty and reducing bottlenecks in the system are crucial to attracting private investment.
At a recent ICE roundtable on grid transition, attendees spoke of how stretched supply chains are currently, especially around high voltage cables and AC/DC converters.
It is important that strategic energy plans are developed by governments to signal that the supply chain needs more capacity. It’s also vital to have strong engagement with the supply chain to get grid equipment early enough to meet key deadlines.
Attendees at the event also spoke about the need for positive messaging around electricity projects, to create the consensus required to deliver a net zero electricity grid.
“Certainty and reducing bottlenecks in the system are crucial to attracting private investmentAustralia, for example, is facing a similar challenge to the UK with public opposition to new power lines. The Australian Energy Market Operator estimates the country needs more than 10,000km of new transmission lines to transform its energy landscape.
What is clear is that the planning system is not working. The system needs to be sufficiently flexible to account for public opinion and move from an adversarial process to being focused on collaborative placemaking.
This means that communities should feel they have genuine agency and a stake in the projects that are generating energy to secure their future.
There are many challenges ahead, but if governments and the energy sector can develop that clear narrative and challenge outdated siloed ways of working, future transition pathways for the grid will become smoother and deliver better outcomes for the public.
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