Decarbonisation Technology - May 2024 Issue

Overcoming grid constraints via energy management solutions How do you balance the demands of cost-effective energy against wider net zero targets when the landscape and timelines have changed?

Stuart Little Powerstar

E nergy efficiency is an important sustainability, security, and affordabilty. The interplay of energy management technologies across a site’s infrastructure can aid the transition to resilient, cost-effective clean energy solutions. Electrification plays a critical role in the move away from fossil fuels to fully renewable energy production and supply. For many businesses, especially those in energy-intensive sectors, the shift from carbon-intensive power to electrified technologies is a vital part of any environmental, social, and governance initiative or net zero strategy. Investment in electric vehicles (EVs) alongside the installation of renewable assets such as solar panels or wind turbines is an obvious way to make a significant reduction in carbon emissions. However, these changes often present challenges of their own, especially when it comes to the rapid charging that is generally required for an EV fleet to operate effectively. consideration in balancing all three components of the energy trilemma: Grid constraints Constraints to the local grid can prove a major issue when organisations are re-evaluating their energy infrastructure. In the UK alone, the predicted increase in demand for electricity is set to rise by 50% over the next decade (Climate Change Committee, 2020) This is across a grid that was originally designed to work on a centralised model of generation and supply, with large-scale power plants connected to the high- voltage transmission network. The transition to a more localised model, based on smaller-scale renewable assets

connected at the distribution network level, creates significant stress locally and issues for distribution network operators (DNOs). These are becoming increasingly important factors in any organisation’s carbon reduction initiative. An additional increase in electrical equipment may take a site over its agreed supply capacity (ASC), which can lead to the DNO imposing excess capacity charges. In such a case, an application to increase ASC can resolve the issue, increasing monthly electricity bills but avoiding punitive surcharges. Potentially more significant is the scenario where a site is already close to its available capacity or where a proposed project will take it over the capacity the DNO is obliged to provide. This can relate to both demand, such as EV charging, and supply, such as the increased export of power from on-site renewable assets, which may impact the DNO’s resilience. In this instance, it may be necessary to apply to the DNO for additional grid connections. However, if the DNO deems such additional demand may affect the network as a whole, it may be legally obliged to refuse such a request, making the proposed electrification project untenable from the outset. Where an application is permissible, there are still hurdles to overcome. Cost can be prohibitive when considered as part of the overall project budget, with the National Grid estimating an average £65,000 connection price for a large organisation (National Grid, 2024). Lead times can also present a major stumbling block. While Ofgem is attempting to remove projects viewed as ‘unrealistic’ from the waiting list, the average time for a connection is approximately two years. The massive increase