New research by Savills shows if all the renewable technologies projects along the planning pipeline come to fruition, the UK has the potential to hit current Future Energy Scenarios (FES) 2030 targets in batteries, onshore wind and solar PV.
Despite a lack of meaningful support from government for many renewable energy sources industry drive is creating significant results. In its latest report Spotlight: Energy Security and Infrastructure, Savills research reviewed the existing and proposed renewable energy generation capacity of the UK. 38 GW of renewable energy generation capacity already exists across the UK from solar PV and wind. A further 33 GW is either under construction or has planning permission but awaiting construction, with another 15 GW constrained within the planning system. Alongside this, almost 16 GW of battery energy storage is lodged within the planning pipeline to support the greening of the UK electricity supply as well as providing grid balancing services.
Joe Lloyd of Savills rural research says, “Energy supply must fulfil the ‘energy trilemma’; security, affordability and sustainability. As renewables are deployed more widely, they are increasingly seen as able to fulfil all three of these requirements.”
The fragile status of the national electricity infrastructure means however some developers face a wait of up to 14 years to connect new generation capacity to the grid for existing projects. This has the potential to derail investor confidence if these are driven by nearer term returns. Likewise, planning consents on most projects are temporary and may expire before the build commences with the risk of it not being reinstated.
Thomas McMillan director in Savills Earth comments, “For a long time the main driver behind the renewables sector was to secure finance and delivery capacity. Savills research shows that the capacity to meet renewable energy targets is there.
“However, the renewables industry is now experiencing growing pains and we increasingly need to modernise the planning system and grid infrastructure so that smart solutions can be put in place to allow pent up capacity to be delivered more quickly. It’s not a question of whether we will get to 100% renewables but when?”
Improvements to the electricity network are long term projects, but with action required now, what steps can be taken to mitigate the risks?
Storage support
By 2021 one-quarter of all ground-mounted solar PV and onshore wind projects equal or greater than 1MW had co-located storage associated with their planning applications. Storage balances output, reducing demand on the grid to absorb production.
Maximising existing capacity
Smart control strategies hold the key to liberating existing capacity with the grid by pushing power off overloaded lines or pulling power onto under-used ones.
Maximise local usage
By ensuring a large proportion as possible of renewable production is used ‘behind the grid’, pressure on connectivity can be minimised. This enhances the argument for solar to be located on commercial and domestic premises, where electricity can be used directly. Matching the variability of renewables to demand is the challenge.
Overhauling electricity markets
The Review of Electricity Market Arrangements (REMA) was published by government in July 2022. It seeks to provide solutions on the delivery of new infrastructure, the cost of stabilising an increasingly volatile system and resolving the energy price crisis. However, it is likely to take several years to come to fruition and the solutions to be adopted are unclear.
Improvements will not be instantaneous. For property developers, the current status of the grid means power needs to be among the first considerations in order to ensure success. It is therefore beholden upon developers to communicate with transmission and distribution operators early in the process.