UK’s net zero held back by cabling strategy finds Enertechnos

A lack of strategy and the use of traditional cabling throughout the UK electrical grid is holding the country back from its clean energy targets, finds a report from UK-based clean technology company Enertechnos.

The report, Solving the UK’s cabling challenge: A blueprint for the new government, details how the UK’s approach to cabling has been hampering its net zero targets, listing four key challenges: efficiency in meeting demand, manufacturing, critical mineral shortages and moving from innovation to deployment.

Commenting on the report in a release was Dominic Quennell, Enertechnos CEO: “Experts from across the energy sector agree that Government must make cabling a priority if it is going to achieve its ambitious mission of clean power by 2030.

“This means having a plan in place to support domestic manufacturing of cables, to address significant skills gaps in the UK, and to secure supply chains for scarce materials like copper.”

Victorian cabling system

According to the report, the cabling that makes up the UK’s power system was predominantly installed in the postwar era when electricity travelled to fewer end points and there was significantly less demand for electricity; these solutions are currently losing significant power.

Such energy loss is a rarely discussed problem brought on by legacy copper cabling, where a relatively high proportion of the power going into the grid doesn’t reach its intended end point.

Such energy losses come to 26TWh annually, states the report, the equivalent of the expected annual electricity production of Hinkley Point C.

Additionally, as electricity demand increases from clean technologies and renewable sources of energy, the issue will become worse if not tackled with modern technology.

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Manufacturing, skills, supply chain

In the report, Enertechnos cites National Grid estimation that 260,000 new roles will need to be filled to deliver the 400,000-strong net zero workforce by 2050.

For cabling specifically, there are particular shortages for electrical design, test and commissioning engineers, despite the UK having excellent engineering universities, and being home to three of the top 10 engineering schools worldwide.

The report adds that, with global competition for equipment and skills unlikely to wane in the short to medium term, it is crucial that the UK starts to capitalise on opportunities to bolster its manufacturing capabilities and build a more resilient supply chain.

Critical minerals shortage

Critical materials that are needed for cabling systems, specifically copper, are in increasingly high demand from other carbon reduction measures, states the report. Global demand for copper could outstrip supply by 50 million tonnes annually by 2035 as countries around the world move to electrify their economies.

According to the report, analysts say this will lead to a copper price boom, with prices having spiked towards the end of 2023 and now having surged over 20% to almost $10,000 per tonne since February 2024.

This poses a significant risk to the net zero transition, with copper and other scarce resources playing a critical role in the production of technologies, including cables and EVs.

The report says that to mitigate this, the UK will need to become increasingly reliant on newer technologies entering the market that reduce reliance on materials such as copper. Although there are likely to be higher upfront costs, this would provide greater resilience against volatility in global supply chains.

Championing innovation

Finally, the report states that, although the UK has been successful at incubating new cabling solution innovators, to date, they haven’t been quick enough to move from innovation to commercialisation and deployment.

The report adds that the Distribution Network Operators’ (DNOs) ability to invest in new technologies is hamstrung by inconsistencies within the regulatory regime, which means they do not have long-term visibility over funding or incentives to invest.

Recommendations

In their report, Enertechnos makes the following recommendations:

• The Department for Energy Security and Net Zero as well as the Department for Business and Trade should work together with the energy industry to establish a clear plan for the UK cabling industry, as part of the next Industrial Strategy;
• GB Energy should have a mandate to choose the most innovative and efficient solutions as possible as part of its procurement process;
• Ofgem should be encouraged to provide distribution network operators with a regulatory framework that incentivises investment in the innovative technologies that are required to decarbonise the grid.

Commented Maxine Frerk from Sustainability First, one of the report’s contributors: “There is an outdated view that network losses are inevitable, but that is not the case with modern technology. While we cannot totally eliminate losses, we can substantially reduce them using innovative approaches that reduce losses while limiting our reliance on scarce resources.

“Addressing the challenge of losses will boost domestic energy security, sustainability and affordability – three elements at the top of the Government’s policy agenda. It will also enable an electricity grid that is fit for the challenges of the 21st Century.”

According to Enertechnos, their report is the outcome of an industry roundtable that convened experts from across the energy sector to discuss how cabling could be best deployed in the UK to support decarbonisation.