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Incorporating renewable energy into existing power systems necessitates robust grid infrastructure at both the transmission and distribution levels. This includes a variety of components such as overhead lines, underground and submarine cables, and power substations. Despite its importance, the development of this infrastructure has often been neglected in certain regions. Immediate efforts are required to improve grid infrastructure; failing to do so could hinder the energy transition process significantly.
The recent goal to triple the capacity of renewable energy by 2030 underscores the urgency of both planning and investing in grid advancements. Unlike traditional concentrated energy generation, which relies on fossil fuels or large hydroelectric facilities, renewable sources like wind and solar energy are dispersed across vast areas. This spatial distribution necessitates a more expansive grid that can connect these decentralized sources and deliver the appropriate amounts of electricity when and where it is needed. This is particularly crucial to meet the rising electricity demands stemming from the electrification of transport, heating, cooling, and industrial processes, as well as the growing electricity requirements associated with information technology.
However, enhancing grid infrastructure is not an overnight task. The development of power lines requires careful consideration of the social and environmental implications along extensive routes, which leads to protracted planning and permitting processes that involve numerous stakeholders. Such lengthy procedures can delay necessary deployment. To address this, streamlining these processes alongside proactive investments is vital. These approaches are essential for facilitating grid expansion and preventing future infrastructure bottlenecks.
Solar Photovoltaics (PV) and Storage: A Synergistic Approach
Over the past few years, there has been a dramatic decrease in the costs associated with solar photovoltaic (PV) panels and battery storage, with price reductions approaching 90% from 2010 to 2023. This trend is predicted to continue driven by advancements in technology, improved manufacturing processes, and increasing economies of scale.
To maximize the utility of solar energy, generated during limited daylight hours, it is crucial for solar installations to produce more electricity than current demand, enabling excess production to be stored for later use. This is where battery energy storage systems (BESS) come into play. Recent advancements and reductions in the costs of BESS have made them a viable option for short-term energy storage, which allows clean solar energy to be utilized even after sunset—a peak time for electricity demand.
While the integration of solar PV and energy storage technologies is paramount, fully realizing their potential involves addressing systemic challenges. This includes implementing clear, supportive policies that mitigate business risks associated with such a transition. Governments should establish energy frameworks that advocate for the fusion of solar power and energy storage, ensuring alignment with broader climate and energy transition initiatives.
National and regional policymakers are encouraged to evaluate specific characteristics of each power system and establish quantitative targets for energy storage. These targets should be supported by long-term incentives and strong regulatory frameworks. Concurrently, industry and financial stakeholders can take a leadership role by actively pursuing energy transition opportunities that emerge from these policies.
In many cases, regulatory reforms may be necessary to recognize the capabilities of energy storage systems, such as balancing grid variability and enhancing system resilience. Eliminating inefficiencies—such as imposing double charges for grid access—is crucial for fostering a competitive market that can attract investors.
Strategic Partnerships and Innovative Solutions for Socio-Economic Advancement
As the energy storage sector matures, the importance of fostering public-private partnerships becomes increasingly evident in two significant areas. First, collaborations aimed at establishing high-quality infrastructure frameworks are essential for ensuring universal safety and consistency in operational standards and certifications. Second, partnerships are required to devise and implement funding schemes that can amplify supply chains and harness technological readiness. These initiatives can lead to improved cost-efficiency in manufacturing, increased equipment reliability, and prioritized deployments of storage solutions in locations where they offer the greatest impact.
Efficiently integrating renewable energy into the power grid also requires modernized infrastructures. Smart electrification strategies, equipped with innovative grid management tools, can optimize energy distribution, minimize curtailments, and enhance system resilience. The potential of these tools is significantly enhanced when paired with storage capabilities, leading to a more stable renewable energy supply, thereby reducing reliance on fossil fuels for grid balancing and lowering electricity costs.
Investing in grid infrastructure also results in numerous socio-economic advantages that are challenging to quantify. Upgraded grids have the potential to electrify remote areas, bolster rural economies, and support distributed access for emerging sectors such as electric transportation, green hydrogen production, and data centers.
The Road Ahead
The crucial first step toward defining effective objectives for the deployment of energy storage and grid infrastructure tailored to a country’s unique needs lies in an integrated assessment of the national power generation mix and sources of flexibility. The World Energy Transitions Outlook 2024 by the International Renewable Energy Agency suggests a benchmark of integrating 1 to 2 megawatts (MW) of energy storage for every 10 MW of renewable power capacity added, though specific requirements will vary based on available flexibility resources.
Additionally, while strengthening grid infrastructure is essential to avert bottlenecks in renewable energy flow, this expansion should be suited to the country’s specific needs. Early evaluations of these requirements and their inclusion in Nationally Determined Contributions (NDCs) and national energy strategies can play a significant role in progressing towards decarbonization targets.
In summary, achieving the ambitious goal of tripling renewable power capacity by 2030 and beyond hinges on the effective expansion and modernization of grid infrastructure, as well as scaling up energy storage solutions. This multifaceted approach necessitates collaboration among governments, private enterprises, international organizations, and financial entities to address regulatory challenges, establish uniform standards, and prioritize investments in these crucial enablers that generate positive socio-economic outcomes.
For further discussions on the intersection of grid infrastructure and energy storage, a session titled ‘Key Enablers for the Energy Transition: Grid and Storage’ will be livestreamed during IRENA’s 15th Assembly on January 11, 2025.
Source
www.irena.org