The UK needs to expand its electricity grid and energy storage capacity as renewable power generation increases and more electricity is produced in Scotland and northern England.
Offshore wind is becoming a major source of electricity, alongside solar and onshore renewable generation. However, a large proportion of this new generation is being built away from areas with the highest electricity demand.
More than half of Britain’s low-carbon generation capacity is located in Scotland and the north of England, compared with less than a fifth of electricity demand. This creates a growing need for infrastructure capable of moving electricity from where it is generated to where it is required.
The existing grid does not always have enough capacity to transport electricity between regions. When renewable generation exceeds the available network capacity, generators can be required to reduce their output.
This has already resulted in significant costs. Wind curtailment costs have exceeded £1 billion this year as the electricity system has been unable to use some of the available generation.
The problem is likely to become more significant as additional renewable generation comes online.
Energy storage can help by moving electricity consumption away from the time when power is generated. Batteries can store surplus electricity and release it when demand increases, while longer-duration storage can provide electricity over extended periods.
Storage alone, however, cannot solve the UK’s transmission constraints.
The grid also needs greater capacity to move electricity between different parts of the country. New transmission infrastructure, including high-voltage connections, can help transport power from areas with significant renewable generation to areas with higher demand.
This is becoming increasingly relevant as electricity demand grows. More businesses are expected to rely on electricity, while new industrial facilities and data centres require access to reliable power.
The availability of grid connections can therefore influence where businesses choose to invest. Long waiting times can delay new projects and make it harder for companies to expand.
The existing backlog of grid connection applications has also created difficulties. Hundreds of gigawatts of proposed generation and other projects have been waiting for connections, including projects that may not ultimately be built.
Changing the way connection applications are prioritised could help make better use of available network capacity. Giving priority to projects that are viable and strategically important could allow the grid to connect new generation and demand more efficiently.
Drax Group plc (LON:DRX), trading as Drax, is a power generation business. The principal downstream enterprises are based in the UK and include Drax Power Limited, which runs the biomass fuelled Drax power station, near Selby in North Yorkshire.
