The energy transition is woven in the networks

The transition to a low-carbon economy is an ambitious goal that has become a global priority.

Oliver Thansan
Oliver Thansan
21 November 2023 Tuesday 09:28
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The energy transition is woven in the networks

The transition to a low-carbon economy is an ambitious goal that has become a global priority. However, to achieve these goals and ensure a sustainable future, it is essential to address a critical and often overlooked component: electrical grids. The expansion of renewable energies is unquestionable. Spain is on its way to generating more than half of its electricity with renewable sources, thanks to the excellent conditions for energy such as solar or wind. But renewable projects and the expansion of electrification alternatives in such popular uses as electric cars or heat pumps collide with an equally incontestable reality: the electrical infrastructure is not enough to handle clean energy projects.

The transfer of renewable generation to customers and the industry requires an adaptation of the networks to which, for the moment, not much attention has been paid. It is estimated that, for every euro invested in renewables, it is necessary to invest between 70 cents and 1 euro in the system network between now and 2030, and above 1 euro thereafter, according to the International Energy Agency (IEA). ). The European Union Action Plan, published at the end of 2022, already estimated that it would be necessary to invest around €584 billion in electricity networks by the end of 2030, of which around €400 billion will be allocated to the distribution network. Now, the European Commission will present a new plan, on November 29.

The vice president of the European Commission Maroš Šefčovič announced last week that this plan should help resolve the energy crisis, promote clean energy and complete the reform of the electricity market, currently under negotiation. “The objective would be to have more than 70-80% renewables in our electricity mix in five or six years,” he noted. To do this, “we need above all to digitize smart grids and improve interconnection between our member states.” “Power grids will become the backbone of the energy system, transporting 50% or more of Europe's energy by 2050,” says Ember, a think tank that advocates for clean energy. “Without stronger electricity networks, it will be difficult to meet climate objectives,” say the analysts, who urge greater political support for the critical role of networks by the EU, considering that the credibility of its commitments to the objectives of zero carbon is at stake: “Without the grid, climate goals will remain out of reach.”

“We must now focus on building the necessary infrastructure and investing on a large scale in networks that accommodate an increasing percentage of renewable energy; establish a policy and regulatory architecture that can facilitate targeted investments by the public and private sectors in the energy transition, and strategically realign institutional capacities to help ensure that skills and capabilities are aligned with the energy system of the future,” he recently explained. Francesco La Camera, director general of the International Renewable Energy Agency (IRENA). In collaboration with COP28 UAE and the Global Renewables Alliance, IRENA has presented a report entitled Triple renewable energy and double energy efficiency by 2030, crucial steps towards 1.5 °C, in which it categorically assures that without networks there will be no transition energy: “The existing electrical infrastructure must be expanded and modernized to create a new energy system suitable for renewable energies.”

The institution warns of the urgency of promoting “intersectoral infrastructure planning, increasing cross-border cooperation and developing regional electricity networks,” and points out that the modernization and expansion of the network will guarantee not only environmental objectives, but also the flexibility of the offer. and demand management. The same Spain that aspires to become a great clean energy generation power suffers the biggest bottleneck in the world in solar and wind projects, due to the lack of installed capacity of its infrastructure. In a recent report, the International Energy Agency (IEA) calls for doubling investment in these infrastructures after verifying that nearly 130 gigawatts (GW) of renewable generation (equivalent to the installed power of some 130 nuclear power plants in an advanced phase in the country) are already queuing to connect to the network.

Despite recognizing the progress of our country in the electrification of energy demand, the European Commission already warned in May: “Spain faces a large accumulation of pending applications for new renewable energy plants (...), the restrictions of “grid capacity limit the greater integration of renewable energies into the electrical grid.” “The pressure on our networks is palpable,” said the European Commissioner for Energy, Kadri Siimson, recently, while she warned about the need to modernize and extend the meshing of European networks. In Spain, the National Integrated Energy and Climate Plan (PNIEC) for the period 2023-2030 estimates investments in networks of 52,920 million euros. It is a high figure, and represents around 18% of the total investments of the decade. However, the electricity sector believes that it falls short.

The European employers' association Eurelectric calculates that, as a general rule, 0.67 euros should be invested in the network for every euro invested in generation capacity, very far from the current 0.30 euros and also from the 0.45 euros that the new roadmap that establishes the latest revision of the PNIEC. The European Commission itself estimates that by 2050 the share of electricity in final energy demand will increase to 53%, with more than 80% of electricity coming from renewable sources. Investments in electrical networks are not just a recommendation, but an imminent necessity.