The weak link in the energy sector: why are solar and wind power plants not connected to the grid?

Currently, solving the problem of electricity generation – both in Ukraine and in the world – remains critically important. Therefore, it is impossible to ignore the prospects for the development of alternative energy. With the push to decarbonize the economy is expected, that the installed capacity of renewable energy sources will increase significantly by 2050. The transition to clean energy combined with economic development will lead to rapid growth in electricity demand – expected to increase by 40% from 2020 to 2030 and double by 2050.

It is worth noting that investments in renewable energy have grown significantly in recent years. In 2024, global investments in clean energy will exceed $3 trillion, with $2 trillion going to the development of clean technologies.

China is the leader in the volume of investments in green energy. Last year, Heaven invested about $126.6 billion in renewable energy sources. American investments in clean technologies, including alternative energy, electric vehicles, nuclear power, grids and storage, will reach $2 trillion this year.

European investment in clean energy is also significant, notably with the support of the European Investment Bank and other financial institutions. India is also actively developing renewable energy, striving in cooperation with Germany to achieve a capacity of 500 GW of renewable energy by 2030. In addition, India is investing in the latest technologies for energy storage and increasing the efficiency of energy systems, which helps reduce dependence on fossil fuels and increase the share of renewable energy in the country’s overall energy balance. These efforts are also in line with India’s ambitious plans to achieve zero carbon emissions by mid-century.

Finally, Latin America, Africa and Southeast Asia are also relying on renewable energy sources, although they lag behind the mainstream leaders in terms of investment.

A system is only as weak as its weakest link

It would seem that if the progressive world community is aware of the importance of the introduction of renewable sources, is ready to invest, then the implementation of the plan will go easily and quickly, but it was not without a spoonful of tar. An authoritative Asian business publication illuminates  a critical problem in the renewable energy sector. The Achilles heel of the development of renewable energy remains the inadequacy of the existing power grids to the growing capacities of solar and wind energy sources. Despite significant investments in green energy, many facilities producing solar and wind power remain off-grid. To give an idea of ​​the scale of the problem: in the USA and Europe, these non-connected objects are capable of generating electricity equivalent to the work of 480 nuclear reactors!

In Asia, the government of South Korea rejected the application of BlackRock – one of the world’s largest investment companies – to build an offshore wind farm due to insufficient network capacity.

The fact is that the existing power grids were designed primarily for the centralized production of electricity based on fossil fuels. The integration of renewable energy sources, however, requires significant modernization and expansion to take into account the decentralized and variable nature of renewable energy sources.

Grid operators face such challenges as network instability and the need to manage voltage fluctuations in real time. These problems can lead to voltage instability, frequency mismatch and harmonic distortion.

To meet growing demand for renewable energy and achieve zero emissions by 2050, countries need to double investment in power lines and other infrastructure. This will require around 550 billion euros per year until 2030!

How countries can address grid mismatch

Addressing the grid mismatch is critical to integrating more renewables. Experts suggest certain strategies that countries can implement.

First, significant investments are needed to modernize and expand existing power grids to adapt them to modern requirements. This involves the construction of new power transmission lines, substations and infrastructure expansion to ensure stable operation under increasing loads. In addition, it is important to connect remote renewable energy sources such as solar and wind farms, which are often located in hard-to-reach regions, requiring additional investment in infrastructure projects.

Secondly, the introduction of smart grid technologies can significantly increase the efficiency and reliability of electricity distribution thanks to the possibility of automated monitoring and management. Smart grids use digital communication technology and sensors to quickly identify faults, optimize energy flows and adjust parameters in real time. This allows for a better response to changes in demand and supply, minimizing energy losses and ensuring more stable and uninterrupted operation of the power system.

Third, the development and implementation of large-scale energy storage systems, such as batteries and other storage technologies, can significantly help manage the intermittent nature of renewable energy. These systems store excess energy generated during peak periods and release it at times of high demand. This not only ensures stability and reliability of energy supplies, but also allows for more efficient use of renewable sources, reducing the need for backup fossil energy sources. Further innovations in energy storage can also reduce energy infrastructure costs and help reduce greenhouse gas emissions.

Fourth, encouraging the development of decentralized energy systems, such as microgrids, can significantly reduce the load on central power grids, especially during peak times or emergency situations. Microgrids are capable of operating autonomously during mains grid outages, providing uninterrupted power supply to local communities, businesses or critical facilities such as hospitals. Such a structure increases the overall stability of the energy system and allows more efficient integration of renewable energy sources, reducing dependence on large centralized generation.

Fifth, governments should implement policies that provide tax breaks and subsidies to companies investing in grid upgrades and energy storage technologies. It is also important to simplify the procedures for obtaining permits for the construction of new power lines and the introduction of renewable sources, which will accelerate the integration of clean technologies. In addition, state support for research and development in the field of “green” technologies will contribute to the implementation of innovative solutions to increase the stability and efficiency of energy systems.

Sixth, countries can cooperate on cross-border power grid projects to share resources and more effectively balance supply and demand. This could include building interconnectors that would allow electricity to flow between countries, increasing the stability and efficiency of the grid. The countries of the European Union are already implementing projects of international power grids, such as European Supergrid, which should unite the energy systems of different states, allowing to optimize energy flows and reduce dependence on fossil fuels. Similarly, initiatives between the US and Canada are also aimed at building a more integrated energy transmission system to better balance supply and demand between regions.

Finally, the development of network infrastructure can be accelerated by attracting private sector investment through public-private partnerships. Such partnerships enable the use of private capital and technical expertise to complement public funding and initiatives. This will contribute to faster modernization and expansion of power grids, as the private sector can offer innovative solutions and efficient management of resources, which will ensure cost optimization and improve the quality of energy services.

According to experts, by implementing these strategies, countries can increase the capacity and reliability of their power grids, contributing to the transition to a more sustainable and renewable energy source in the future.

Solving the problem of connecting renewable energy sources to the grid is critical to achieving global environmental goals. Smart grids, large-scale energy storage systems and infrastructure upgrades will help countries reduce their dependence on fossil fuels and contribute to global decarbonisation.

Tatyana Morarash