Grid Strategy for 2025

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Jo Stephens

Solar Manager

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Integrating Renewables into a Reliable and Resilient Energy Future

With the world moving towards sustainable energy, the existing power grid has to be upgraded to accommodate renewable sources of energy.

This is coupled with strategic enhancements, highly necessary by 2025 to keep up with the increasing influx of renewables to assure reliability, efficiency and resilience.

Imperative for Grid Modernization

Renewables, according to the IEA, “Will be become the leading source of electricity generation in 2025, surpassing coal.”  In 2025, wind will “surpass nuclear generation,” while solar PV will follow suit in 2026.  By 2028, renewable energy will contribute over 42% of the growth in electricity generation, with a two-fold share of wind and solar PV up to 25% [i].

However, meeting these milestones will also require addressing bottlenecks in the global supply chain for critical renewable energy components such as solar panels and turbines.

The Challenges of Integrating Renewables

Various problems may emerge during every attempt to integrate renewable energy sources into existing grids:

  • Variability and Intermittency: Wing and solar are weather-dependent resources, leading to variability in supply.  This makes real-time energy balancing an essential capability for modernized grids.
  • Limitations in Infrastructure: Most of the existing grids are very old and cannot support decentralized variable power sources.  Expanding grid capacity in underserved regions can help ensure equitable access to clean energy.
  • Regulatory Hurdles: Policies and regulations may not align with the rapid deployment of renewable technologies.  Harmonized regulatory frameworks across borders can also facilitate the expansion of cross-national energy grids.

 

 

Strategic Approaches to Grid Modernization

1. Investment in Grid Infrastructure

Upgrading transmission and distribution networks demands substantial investment.  According to BloombergNEF, achieving global net-zero emissions will require a $21 trillion investment in power grids by 2050.  This includes $4.1 trillion to maintain the existing grid and $17.4 trillion to expand it for new electricity consumption and production [ii].

Developing new financing mechanisms, such as green bonds, can help fund these investments efficiently.

2. Deployment of Smart Grid Technologies

Implementing smart grids allows real-time monitoring and management of energy flows.  The International Energy Agency stresses the importance of increasing grid investments for over $600 billion annually by 2030, up from $300 billion, to support energy integration [iii].

Incorporating artificial intelligence into smart grids will further enhance their ability to predict and respond to energy demand patterns.

3. Energy Storage Solutions

Energy storage systems, such as batteries and pumped hydro storage, can mitigate the intermittency of renewables by storing surplus energy during peak production and releasing it during high-demand periods.

Emerging technologies, such as sodium-ion batteries, are also being explored as cost-effective alternatives to lithium-ion solutions.

4. Regulatory and Policy Reforms

Streamlining permitting processes and creating incentives for renewable integration are critical.  For example, the U.S. Department of Energy’s authority to oversee major power-grid projects aims to fast-track approvals and enhance infrastructure to meet growing energy demands [iv].

These reforms must also consider environmental impacts to ensure sustainable development practices.

5. Enhances Grid Flexibility

Demand response programs and flexible grid operations are essential for balancing supply and demand, ensuring compatibility with the variability of renewable sources.

Virtual power plants, which aggregate distributed energy resources, are becoming increasingly popular for boosting grid flexibility.

 

 

Insights from Business Leaders

As Faith Birol, Executive Director of the IEA, confirms, “The good news is renewables plus nuclear power are coming on stream at a pace that meets almost all this additional appetite, suggesting we are not far away from tipping point for power sector emissions.” [v]  Birol also highlighted the importance of collaboration between governments and the private sector in accelerating renewable adoption globally.

In the UK alone, National Grid’s “Great Grid Upgrade” calls for over £30 billion of investment between 2025 and 2029, funding projects that support the UK’s net zero and power decarbonization targets [vi]. This upgrade will not only enhance energy resilience but also create thousands of jobs in engineering and construction sectors.

Conclusion

In 2025, modernizing the power grid to integrate renewables into the grid remains a multifaceted challenge but workable.  Strategic investments, technology development and enabling policies will be required to find a path toward a sustainable and resilient energy system, paving the way for a cleaner and more reliable energy future.

With continued collaboration and innovation, the transition to renewable-dominated grids can also strengthen energy security and economic growth across nations.

 

If you are looking to grow your renewables team, either email me or message me on LinkedIn.

Alternatively, if you are looking for a job within the renewables sector, take a look at our live jobs and apply now!

 

[i] https://www.iea.org/reports/renewables-2023/executive-summary

[ii] https://about.bnef.com/blog/global-net-zero-will-require-21-trillion-investment-in-power-grids/

[iii] https://www.iea.org/reports/electricity-grids-and-secure-energy-transitions

[iv] https://www.wsj.com/politics/policy/energy-department-gets-power-over-big-grid-projects-3865d42d

[v] https://www.weforum.org/stories/2023/03/electricity-generation-renewables-power-iea/

[vi] https://www.nationalgrid.com/the-great-grid-upgrade/whats-happening