The energy grids of the UK and Ireland, pivotal to powering homes and industries, are significantly underutilised, with analysis revealing that approximately 74% of their electricity distribution networks could support additional capacity. This underutilised potential presents a substantial opportunity to accelerate the integration of renewable energy sources, enhance energy security, and drive down costs for consumers. However, tapping into this dormant capacity requires navigating a complex web of aging infrastructure, regulatory hurdles, and the inherent challenges of integrating intermittent renewable generation.
The Underutilised Grid: A Paradox of Potential
Despite ambitious renewable energy targets and a growing need for clean power, a significant portion of the existing electricity distribution networks in the UK and Ireland remains untapped. Analysis by Neara indicates that roughly three-quarters of these networks are underutilised. This paradox means that even as new renewable projects face lengthy connection queues, considerable existing grid infrastructure could handle more power.
Why is the Grid Underutilised?
Several factors contribute to this underutilisation:
- Outdated Infrastructure: Much of the UK’s grid, for instance, dates back to the 1950s and was designed for a one-way flow of electricity from large, centralised fossil fuel power plants to consumers. This architecture struggles to accommodate the decentralised and variable nature of modern renewable energy sources like wind and solar.
- Lack of Flexibility and Storage: The intermittency of wind and solar power means generation often doesn’t align with consumption. Without sufficient energy storage capacity or grid-scale balancing mechanisms, excess renewable energy generated during peak production periods can go to waste, leading to “curtailment.” Conversely, shortages necessitate reliance on backup fossil fuel plants.
- Connection Queues and Delays: The queue for connecting new sources of electricity to the UK’s grid is massively oversubscribed, with hundreds of renewable projects facing delays of up to a decade or more for connection. These delays not only hinder the transition to clean energy but also represent a significant economic bottleneck.
- Regulatory and Planning Complexities: Current regulatory processes are often too long and complex to allow for grid expansion at the required pace. Streamlined approvals and government support are crucial for accelerating grid advancements.
The Implications of Underutilised Capacity
The underutilisation of the grid has several far-reaching implications:
- Hindered Renewable Integration: The inability of the grid to accommodate new renewable projects or efficiently manage existing renewable output slows down the decarbonisation efforts and the transition away from fossil fuels.
- Increased Costs: When grid capacity is insufficient, particularly during peak demand, operators may incur high costs for supplemental generation or power imports, which are ultimately passed on to consumers through higher electricity bills. The curtailment of renewable energy also represents a wasted resource that could otherwise provide clean, low-cost electricity.
- Energy Security Concerns: Reliance on aging, inflexible infrastructure and the need to import energy during peak times can pose risks to energy security and stability.
- Economic Opportunity Lost: The delays and constraints on grid connections deter investment in green energy projects, costing the economy potential jobs and innovation. The necessary upgrades and expansions could cost tens of billions of pounds by 2030 in the UK alone.
Strategies for Unleashing Grid Potential
Unlocking the full potential of the UK and Ireland’s energy grids requires a multi-faceted approach, combining infrastructure upgrades with smart technologies and regulatory reforms.
Modernising Infrastructure and Expanding Capacity
Substantial investment in grid modernisation and expansion is paramount. This includes:
- Upgrading Existing Networks: Replacing outdated components and enhancing the capacity of transmission and distribution lines to support bidirectional energy flow is crucial.
- New Transmission Lines: Connecting emerging renewable sources, often located in remote areas, to population centres requires extensive new transmission lines. National Grid in the UK aims to deliver five times the amount of electricity transmission infrastructure in the next seven years than has been built in the past 30 years to meet net-zero targets.
- Cross-Border Interconnections: Interconnectors between the UK, Ireland, and continental Europe increase competition, enhance supply security, and facilitate the trade of cheaper or excess renewable electricity. The Celtic Interconnector, set for completion in 2027, will further strengthen Ireland’s ability to trade renewable energy with mainland Europe.
Embracing Smart Grid Technologies and Flexibility
Technological advancements are key to optimising grid performance:
- Smart Grids and Digitalisation: Implementing smart grid technologies, dynamic line rating, and real-time monitoring can optimise energy distribution, improve efficiency, and enable real-time demand response capabilities.
- Energy Storage Solutions: Investing in large-scale battery storage and pumped hydro projects can mitigate the intermittency of renewables by storing excess energy for use during peak demand, improving grid stability and efficiency. Ireland has already seen significant steps in large-scale battery projects.
- Virtual Power Plants (VPPs) and Demand Response: VPPs integrate distributed energy resources and flexible consumption, allowing them to be controlled as one unit to balance the grid. Demand response programs incentivise large energy users to reduce consumption during peak periods, easing grid strain and potentially avoiding the need for new power plants.
- Microgrids: Self-contained, local energy networks can operate independently or in tandem with the traditional grid, helping to bypass infrastructure bottlenecks, accelerate renewable rollout, and provide critical backup.
Streamlining Regulatory Processes and Investment
Policy and regulatory reforms are essential to accelerate progress:
- Faster Connection Approvals: Streamlining the approval process for new connections is critical to clear the existing backlog of renewable projects.
- Financial Incentives: Public funding and incentives can make grid upgrade projects more affordable and accelerate their development.
- Efficient Queue Management: Developing new contractual terms for connection contracts can manage the queue more efficiently, prioritising projects that are closer to delivery.
By strategically investing in infrastructure, leveraging smart technologies, and implementing supportive policies, the UK and Ireland can unlock the vast underutilised capacity of their energy grids, paving the way for a more resilient, sustainable, and cost-effective energy future.
