“Tens of billions” of pounds worth of investment is required to upgrade the UK’s transmission system as the generation mix decarbonises, a major study by National Grid Electricity System Operator (ESO) is set to conclude.
Giving evidence on Wednesday (22 June) to the Environmental Audit Committee’s ongoing inquiry into the security of energy supplies, the ESO’s director of corporate affairs Jake Rigg said a “major” network infrastructure plan is due to be published next week.
While a precise figure has yet to be ironed out, the electricity transmission network will need “tens of billions” of pounds of investment, he said: “Major investment is needed facilitate these kinds of challenges.”
Rigg appeared to be referring to the Holistic Network Design, being developed by Ofgem and the ESO, which will outline the transmission network capacity required to meet the UK’s 2030 offshore wind generation ambitions. Energy minister Greg Hands said a fortnight ago that the HND is due to be published by the end of this month.
As an example of the mismatches in supply and demand that the UK faces as it transitions to greater reliance on renewable energy, Rigg pointed to Scotland, which has limited transmission links with England.
The country’s typical peak electricity demand of 4GW will be dwarfed by the 35GW of offshore wind generation capacity already built or in the pipeline, including the 25GW due to be delivered through the Crown Estate’s recently announced ScotWind leasing round, he said.
Rigg said alongside investment in new infrastructure, greater geographical co-location of supply and demand would cut the need for new transmission while opening up “huge industrial regeneration opportunities in different parts of Britain”.
He also told the committee the balancing activity, which the ESO is carrying out at the margins of the grid, is “significantly greater” than it would have been ten years ago and will increase “really dramatically over the next few years”, presenting “big digitalisation challenges” for the organisation.
But Rigg stressed that the ESO should not be seen as the energy system’s “Fat Controller” as it transitions to its planned new role of Future System Operator.
“It is really important that we don’t become a ‘Fat Controller’: the energy system needs to be market led. It’s really important that we don’t become some central dictator.”
Quizzed about the government’s decision to allow the closure of Centrica’s Rough gas store, he said there is not a “complete solution” to potential gas shortage shortages but “one of lots of smaller silver bullets”.
At the same hearing, Ecotricity founder Dale Vince slammed the government’s programme to roll out heat pumps as “fundamentally flawed” because 40% of homes are not suitable for the devices or will require a “major intervention” to do so, while resulting in “millions” of boilers having to be scrapped.
However, he admitted not knowing where the land for growing the grass, which would be the feedstock for his recently announced plan to convert the UK’s existing boilers to bio-gas, would be located.
Vince also criticised the government’s continuing reluctance to grant planning consent to onshore wind power, which it said in its recent energy security strategy will only be located where there is evidence of widespread local community support.
“It’s the cheapest and fastest form of renewable energy and it’s shut out of planning system by the Conservative government. It’s a political decision and doesn’t make any sense given the need to get to zero carbon,” he said, adding that nuclear power should have “no part” in the UK’s zero carbon plan because it is the “dirtiest and most expensive” form of power available.