According to a new report from the International Energy Agency (IEA), to ensure the successful grid connection of newly deployed solar and wind energy, government action must be strategic, coupled with increased infrastructure and regulatory action.
New solar and wind should be well integrated into the power system at the time of deployment to avoid losing out on huge benefits, the report said. The report also warns that without this, solar and wind could generate 15 percent less electricity than projected by 2030, reduce their share of the global electricity mix by 5 percent, and reduce CO2 emissions in the power sector by 20 percent.
"If grid-connection measures are not implemented in accordance with scenarios consistent with national climate targets, global renewable energy generation could reach up to 2,000 TWh by 2030 and is at risk," the IEA said, which is equivalent to the combined power generation of China and the United States in 2023.
"Global solar and wind capacity has increased significantly as countries seek to enhance energy security and reduce emissions, but they will not reap the full benefits without a greater push to integrate these technologies into power systems," said Keisuke Sadamori, head of energy markets at the IEA.
The report takes stock of global measures to integrate variable renewable energy, covering 50 power systems that account for nearly 90% of global solar and wind generation.
Government support must be strategic and provide guidance to countries at different stages of renewable energy deployment, the report said. For regions with a low share of renewables in the energy mix, including emerging markets such as India and Brazil, most grid-connection challenges can be addressed by changing existing assets or improving operational management to increase flexibility.
"These include optimizing dispatch processes and improving forecasting, seeking greater flexibility and system services from conventional and renewable power plants, achieving industrial demand response and strengthening grid infrastructure," the IEA said.
The report also notes that for regions with a high share of renewables in the energy mix, such as Denmark, Ireland and Spain, the key to successfully addressing the grid-connection challenge lies in policy and regulatory action.
"Essential elements include modernising system operating practices, improving strategic planning and overhauling the regulatory framework," the IEA says. "Market design must also evolve to accommodate the unique characteristics of the new market - a combination of solar - and wind-dominated grids, new technologies and a new role for traditional generation as an essential system service rather than an energy provider."
The International Energy Agency predicts that as renewable energy continues to grow and accelerate, new grid-connection challenges will arise. These challenges include dealing with seasonal changes, ensuring the profitability of new investments in the face of increased price volatility, and appropriately compensating for assets that provide flexibility.
"Addressing these challenges will require sustained innovation, collaboration and commitment from policymakers, technology leaders and researchers around the world," it said.
