Image Credit: Enlit Europe 2023
The grid sits at the centre of the multi-pronged challenge of the world wanting to electrify, while at the same time climate change demands that we accelerate the integration of renewables into the energy mix, writes Claudia Blanco, Business Incubator Leader, GE Vernova.
Global electricity demand is expected to grow by 50% by 2040. The International Energy Agency (IEA) recently noted that one in five cars sold is now electric, up from one in 25 just three years ago.
The US and Europe have made enormous investments in clean energy as both a bulwark against climate change and a measure to ensure energy security in a volatile geopolitical environment. Wind turbines are rising in the North Sea and off the Atlantic coast.
Solar PV’s installed power capacity is expected to surpass that of coal by 2027, the IEA reports.
If we truly want to decarbonise, we can’t simply generate more renewable energy. All that new energy needs a place to go. Around the world, ageing grids are ill-equipped to handle this growing electricity demand, and most of the world’s electrical grids were not built to handle distributed energy resources (DERs), such as renewables.
To meet this challenge, the grids will need to modernise quickly, adopting new technologies to enable a digitised, bidirectional energy that can adapt in microseconds to the new variables that come with the introduction of renewables.
Governments and businesses must invest in grid modernisation on par with the investment in energy generation. The UN estimates that the world will need to invest $4 trillion a year until 2030 to reach net zero by 2050.
Money, however, won’t be enough. In the past five years, the pandemic, extreme weather and wars in Ukraine and the Middle East have challenged energy security and supply chain stability. To avoid disruption to the energy transition, it is essential to have a secure and resilient energy technology and resource supply chain. That will require governments and industry to rethink the regulatory and resource environment.
For example, the European Commission’s Critical Raw Materials Act, proposed in March, seeks to ensure a critical domestic supply of 34 crucial raw materials, including 16 strategic raw materials, such as lithium, nickel, graphite and aluminum. Notably, it simplified the permit procedure of strategic extracting projects, cutting some of the red tape that can delay projects and inflate costs.
The technologies exist that allow us to integrate renewable energy from multiple sources – solar, wind, water and hydrogen, – without sacrificing reliability. GE has already deployed these technologies in more than 150 countries. We – and our industry partners – can build the grid of the future and electrify the world with the right global investment and commitment.
