The Energy Transition | '58 Billion Investment Needed For Net Zero Grid By 2035

• Published date: 27 March 2024
• Subject Matter: Energy and Natural Resources, Technology, Energy Law, Oil, Gas & Electricity, Renewables, New Technology
• Law Firm: Osborne Clarke
• Author: Helen Raynsford, Amber Bains and Hannah Wooderson

This week we look at the call for a '58 billion investment to support decarbonisation by 2035, the government's response to the consultation on introducing a CfD Sustainable Industry Reward, Ofgem requirements for landowner consents to speed up grid connections, and more.

ESO publishes "Beyond 2030": a '58bn energy system investment plan

The Electricity System Operator (ESO) has published its "Beyond 2030" report which provides a "national blueprint" for decarbonisation and proposes a '58 billion investment in the UK electricity grid to meet the demands of decarbonisation by 2035.

The report outlines the increasing electricity demands in Great Britain, which are predicted to rise by up to nearly 65% by 2035. The report also notes that investment in energy generation has exceeded investment in transmission capacity, resulting in bottlenecks on the electricity network. This has resulted in occasions where wind farms have had to be switched off to prevent the grid being overloaded, resulting in wasted energy.

The ESO sets out the potential for the connection of an additional 21GW of offshore wind, taking potential offshore wind generation to 86GW by 2035 and enabling Great Britain to have the single largest offshore wind fleet in Europe. To facilitate this, the ESO recommends laying substantial amounts of undersea cabling: over three times as much when compared with new onshore routes. There is also the need for reinforcement from North East Scotland to North West England, potentially forming a new "arterial transmission route", and to enhance the capacity between the east and west coast of England.

The report further highlights that designing a comprehensive electricity network goes beyond simply constructing more infrastructure. ESO engineers will work to find innovative solutions to ensure that the system is designed in a secure and affordable way. Additionally, areas of strategic importance where large-scale demand users can be located are identified in the report, offering an alternative to additional infrastructure development.

The need for a strategic and flexible approach to address increasing energy needs is emphasised by the ESO. Various future solutions are considered, such as a spatial energy plan and reforms to the wholesale electricity market. The also report emphasises the importance of ongoing design innovation and engagement with communities and industry throughout the consenting process.

Government responds to consultation on introducing a...