The world needs investment in distribution networks
The International Energy Agency states that the world needs to install or upgrade over 80 million kilometers of distribution networks by 2040. This means we have to double the current number of power grids, and experts consider this essential for meeting climate goals.
It is essential to make changes in how legislation is structured and regulated. The yearly investment in networks, which has largely remained unchanged, needs to increase twofold, reaching over $600 billion annually by 2030. Failing to implement these measures will lead to various negative consequences, including higher CO2 emissions. In such a situation, the total carbon dioxide (CO2) emissions from 2030 to 2050 will be nearly 60 billion tonnes higher due to the slower adoption of renewable energy sources.
The situation in Europe
Approximately 40% of electricity networks in Europe are more than 40 years old. These systems were originally designed for traditional power generation and do not meet the requirements for today’s decentralized renewable energy production.
The International Energy Agency (IEA) underscores the need for the European Union to expand its electricity networks. They should grow from 10.8 million kilometers in 2021 to 14.9 million kilometers by 2050 in order to meet climate neutrality targets.
In 2022, several wind farm projects, totaling 80 GW in capacity, experienced delays in obtaining the necessary permits. Some regions require up to 9 years to secure permits for new installations. In the UK, there are 140 projects waiting for connection, with a total capacity of 300 GW, which is three times the country’s current wind power capacity.
Distribution networks – challenges in Poland
In Poland, from 2021 to 2022, distribution network operators refused to provide connection conditions for 10,775 energy sources, primarily renewable energy sources (RES), with a combined capacity of 65.6 GW. This capacity is nearly three times the total capacity of photovoltaic and wind energy sources installed in 2023.
During 2022, financial investments in transmission and distribution networks in Poland increased to PLN 9.4 billion, up from PLN 7.2 billion the previous year. Polskie Sieci Elektroenergetyczne (PSE) has planned investments totaling PLN 61.8 billion until 2036.
An amendment to the Act on the preparation and implementation of strategic investments in the field of transmission networks is intended to simplify administrative procedures. Additionally, the amendment concerning network sharing, also known as cable pooling, will allow the connection of an extra 5 GW of renewable energy sources without the need for infrastructure expansion.
Sources: iea.org; cire.pl