Vital next steps to unlock greater grid stability

In an encouraging move for the UK power industry, energy regulator Ofgem this year approved £24 billion to operate and maintain critical gas networks and upgrade Britain's electricity grid. 

This continues an encouraging trend in the UK which has made significant progress in efforts to prepare infrastructure for the energy transition.

However, this is no time for the country to rest on its laurels. The blackout across the Iberian peninsula this year was only one example of the growing risks posed if adaptation to the grid doesn’t keep pace with the increasing use of renewable energy. 

So, while the UK has made progress – and impressive progress compared with some of its peers – it is vital that it maintains momentum.

If we are to accomplish that goal and ensure investments are more than one-off injections, a comprehensive strategy will be needed to provide a platform for the industry and wider stakeholders to build on the recent progress.

What causes blackouts?

The acute sensitivity of electricity grids means that faults in supply can have an outsized impact if safeguards are not in place. The Iberia blackout is an instructive example, with the majority of the power drop occurring in just five seconds after the failure of a substation in Granada. 

This has, of course, always been a risk and traditional power sources were not foolproof. But the increasing integration of renewable energy across networks has amplified the risk.

The reason is that traditional power generation provided a predictable and reliable supply that could be closely tailored to demand. On a large scale, consider the rise in energy needs during long, dark winters; on a smaller scale, the surge in energy use to boil the kettle at half-time during football’s FA Cup final. 

This was buttressed by the fact that coal- and gas-fired turbines created inertia as a by-product of their operation, which helps manage the risk of sudden frequency changes.

Renewables offer no such guarantees. Wind and sun powered generation can spike or drop with little warning, especially as weather patterns become less predictable and more extreme. 

This puts additional stress on the grid and risks malfunction or damage to equipment, whilst the lack of available storage for excess energy means that wind farms, for instance, are at times paid not to generate.

More on power grid stability:
Shifting the mindset: why grid resilience can’t wait
Delivering a blueprint for grid resilience in Europe
Energy Transitions podcast: Applying grid resilience lessons from Spain's blackout

Progress and policies

This does not mean that blackouts or damage to the grid are inevitable: far from it. Newer technologies can be used to provide inertia, such as synchronous condensers replacing synchronous plants. These can be supported by grid-forming battery inverters, which further boost stability for the system in real time.

The recently-announced Industrial and Infrastructure Strategies, as well as NESO’s procurement programmes, should help to provide funding support and boost investor confidence in these technologies. The pledges to cut wait times for grid connections and planning approval of major projects also stand to make a significant difference.

Lithium-ion batteries will also have a role to play. Such batteries offer a potentially scalable and commercially viable solution to increase the length of time that renewable energy can be stored. This will make the grid more stable and sustainable by storing energy generated when it’s bright and windy and releasing on days when supply is low.

In the immediate future, behind-the-meter energy will also likely remain an attractive option. Energy generated by on- or near-site sources, such as solar panels on roofs, provides immediate access to renewable energy without relying on the grid, boosting green credentials and cutting costs. 

Even the upfront costs of installation can be effectively waived via a power purchase agreement whereby these initial costs are paid by the supplier, which in return sells the energy at a pre-agreed fixed price for a fixed duration back to the business. This offers valuable price certainty and protection from sudden spikes in energy prices. 

Renewable grid business case 

The stark reality is that while progress has been made, which has been supported by government policies, there is still work to be done. Fundamentally, the grid simply is not ready to run entirely on renewables, even just from a stability perspective.

Which means that while the business case underpinning the energy transition remains strong – not least cost savings, insulation from fluctuating global energy prices, and the chance to bolster green credentials – it remains critical to take measures to limit the risks of costly and potentially dangerous disruptions. 

There is no magic switch or single solution that will suddenly achieve that goal. Rather, it will take time, innovation, and investment in the grid to tackle these challenges as they arise.

The UK is on the right track and should need no further warnings about the risks of deviating.

About the author:

Steve Conry is chief operating officer at UK-based independent power producer Conrad Energy.