Global ‘Grid Superhighways’ as a Driver of the Energy Transitions

Background:

Central to energy transitions are advancements in power grids, requiring modernization for efficient integration and diffusion of renewable energy. A diversified and interconnected energy system requires the modernisation and expansion of infrastructure. Transmission and distribution systems will need to accommodate the highly localised, decentralised nature of many renewable sources, along with the various trade routes involved. With regard to the interconnectors required to trade electricity energy system planning must consider a staggering array of global dynamics, proactively linking countries to promote diverse and resilient energy systems. Public acceptance, which is critical for any large-scale undertaking, can be secured through transparency in planning and implementation and by providing opportunities for communities to voice their perspectives.

IRENA’s analysis indicates that physical infrastructure upgrades, modernisation and expansion will increase resilience and build flexibility for a diversified and interconnected energy system. Transmission and distribution will need to accommodate both the highly localised, decentralised nature of many renewable fuels, as well as different trade routes. Planning for interconnectors to enable electricity trade must consider vastly different global dynamics and proactively link countries to promote the diversification and resilience of energy systems. Storage solutions to provide system flexibility will need to be widespread and designed with geo-economic impacts in mind.

Given the crucial need for modernized infrastructure to support a diversified and interconnected energy system as highlighted in IRENA’s analysis, interconnectors emerge as essential components to fulfill the evolving requirements of our global energy landscape. They are instrumental in (IRENA 2023, IEA 2023):

1. Economic Benefits through Optimized Energy Trading: By connecting different power markets, interconnectors enable more efficient energy trading. This can lead to reduced electricity costs by equalizing prices across connected regions, fostering economic savings, and promoting competitive energy markets.

2. Integrating Renewables: Facilitating the integration of renewable energy by transporting excess power from regions of surplus to areas of high demand. This capability enhances the utilization of renewable sources such as wind, solar, and hydroelectric power, which are pivotal in the transition towards sustainable energy.

3. Enhancing Grid Flexibility and Reliability: Interconnectors contribute significantly to the flexibility and reliability of the power grid. They provide additional pathways for electricity flow, which is crucial for maintaining grid stability as the share of renewables increases. This capability is particularly important in scenarios where rapid adjustments to changes in electricity supply and demand are necessary.

4. Supporting Decarbonization Goals: Interconnectors are integral to achieving decarbonization targets as outlined in the 1.5°C scenario. They facilitate the large-scale deployment of renewables and the phasing out of fossil-fuel-based power generation by enhancing the capacity to share renewable resources across borders. The utilities sector is a pivotal driver in catalyzing the global economy towards a greener, more sustainable future. The essential role of infrastructure grid enhancement and expansion is as a prominent hurdle worldwide, not just confined to the global north or south.

About the organizer:

The Utilities for Net Zero Alliance (UNEZA) is an international platform for cooperation among entities operating within the power utilities ecosystem, to address and overcome common barriers to the realisation of net zero ambitions and more near-term emissions reduction targets. Through it, shaping dynamic new partnerships, and forging effective channels for dialogue with key public and private stakeholders.

To address the above challenges, 27 global utilities and power companies that collectively serve more than 300 million customers, and 6 institutional and support partners united for a landmark joint commitment to advance electrification, renewables-ready grids, and clean energy deployment in line with 2030 Breakthrough goals and a net zero future by 2050.

Under the guidance of IRENA and supported by the UN Climate Change High-Level Champions, UNEZA collaborates with various eco-system support partners to address impediments to the net zero pathway. The six key areas UNEZA acknowledge and share a desire to work towards between now and 2030 to 2050 include the following:

• Buildout of clean power and decarbonization of thermal power generation;

• Build up reliable, resilient and flexible grid infrastructure;

• Drive wide-spread adoption of electrification in end use sectors;

• Improve energy efficiency;

• Promote technological innovation; and

• Sustainable execution of actions, to ensure that planned activities are designed and delivered in an equitable and environmentally responsible manner that delivers universally positive outcomes.

The members of UNEZA recognize the key to unlocking the utility sector’s global energy transition potential lies in the ability to deliberately target existing structural, regulatory, and financial impediments and challenges that may stand in the way of progress.

Objective:

• To have a high-level strategic exchange on the key role of infrastructure development in energy transition and the achievement of the Tripling Renewables objective by 2030.

• Present key messages of the UNEZA Grid Superhighways Report: Unveil a study on the benefits and global case studies of grid superhighways, highlighting successful implementations and lessons learned.

• Address Challenges: Identify and deliberate on overcoming technical, regulatory, supply chain related and financial barriers to developing infrastructure to promote the energy transition.

The session will bring together UNEZA stakeholders to share insights on sustainable grids, deployment of renewables, technological innovations, policy frameworks, and partnerships for achieving the Tripling Renewables objective by 2030 within the power sector.

Reference reports:

IRENA (2023), World Energy Transitions Outlook 2023: 1.5°C Pathway, International Renewable Energy Agency.

IEA (2023), World Energy Outlook 2023, International Energy Agency.

IRENA (2023a). Tripling renewable power and doubling energy efficiency by 2030: Crucial steps towards 1.5°C, International Renewable Energy Agency