A new report from the Association for Renewable Energy and Clean Technology (REA) has found that the UK risks missing its decarbonisation targets without urgent action to increase grid flexibility.
The report, sponsored by the global power management company Eaton, has assessed the readiness of the UK’s energy market to support the transition to net zero, comparing it with 11 other European countries.
The Energy Transition Readiness Index 2021 (ETRI 2021) finds that the UK is well behind Finland, Norway, and Sweden in making changes that are vital to increase the flexibility of the grid as more variable generation comes online and renewables generate a bigger proportion of the country’s power supply.
It concludes that unless urgent action is taken, billions more could be needed to balance the system, and progress towards net zero will be slowed, because fossil fuel generators will be paid to fire up when demand outstrips supply, and some generators will be paid to turn off when supply is greater than demand. This is what happens at present in the UK.
It makes a series of policy recommendations such as coordinating with suppliers to encourage greater uptake of ‘time of use tariffs’; simplifying the regulations for energy storage; and setting up a national market where participants can ‘buy flexibility’.
Dr Nina Skorupska CBE, Chief Executive of the Association for Renewable Energy and Clean Technology (REA), said: “This new analysis puts the spotlight on the consequences of not making small but vitally important adjustments to how the UK’s energy system, including its grid network, operates.
“The UK has taken positive steps forward in looking to decarbonise electricity generation and the government rightly remains ambitious to reduce emissions to zero. However, unless the grid keeps pace and is re-framed to become more responsive, it could cost the UK hundreds of millions of pounds a year more to transition to renewables, with the burden likely to fall on households and businesses. It will almost certainly mean that the UK will miss its net zero targets too.”
