UK energy regulator Ofgem on Monday warned that the country would need to rewire in a smarter way to secure access to renewable plants, but that an investment of £32 billion ($50.8 billion) would be needed to overhaul the aging grid, including replacing old “pipes and wires.”
The bill would be just a portion of the overall £200 billion ($317.5 billion) needed in the next 10 years to “secure supplies for consumers and to move to a low carbon economy,” the government office said.
“New sources of generation, whether large-scale wind, gas or nuclear plants or small-scale renewables and home-based microgeneration, will require not only a step change in investment, but smarter networks to make sure Britain is rewired to meet these more complex challenges,” Ofgem said. “Moves towards electrification of transport and heat will further increase the need for smart grids.”
The body completed its model for delivering a modernized energy infrastructure in Britain on Monday by approving its RIIO method.
According to Ofgem, the bulk of the costs will come from connecting offshore and onshore wind farms and new nuclear plants. It pointed out that much of the renewable generation in the UK is based in Scotland or in remote locations that would require a “radical expansion of the high voltage transmission network, not only to connect the generation but to transport it via sub-sea cables from Scotland to the population centres in England.”
Other factors that were considered when assessing costs included implementation of smarter networks to accommodate microgeneration. “Also, large-scale renewable generation will make managing the network more complex due to the intermittent nature of wind power,” it added.
The UK’s drive to electrify heat and transport was certain to increase demand for power and change how and when consumers use energy—for example, charging electric cars overnight. “Smart meters will give consumers the option to shift some of their electricity use to off peak hours,” Ofgem said.
Sources: Ofgem, POWERnews
