Limitations of the Power Grid Hold Back the Progress of Renewable Energy, According to REN21’s New Report

Renewable energy reached a historic milestone, accounting for 30% of global electricity in 2023, with solar and wind contributing 13%. However, the growth of renewables is facing significant challenges due to insufficient power grids and energy storage infrastructure, according to REN21’s latest report.

The “Renewable Energy Systems and Infrastructure” report from the Global Status Report 2024 stresses the urgent need to improve power grids, implement energy storage solutions, and increase system flexibility to handle the variable nature of wind and solar energy. Although countries like Denmark and Spain already integrate high percentages of renewables into their power grids, renewable energy projects worldwide are experiencing delays due to grid congestion.

Investment and Planning Needed

In 2023, global investment in power grids reached $310 billion, a 5% increase, but this represents only half of what is needed to ensure an effective energy transition. The report also highlights that by the end of 2022, over 1.5 TW of renewable energy projects were awaiting grid connection, underscoring the urgency of expanding and modernising infrastructure.

The Challenge of Storage and Flexibility

Energy storage is another key element in maximising the use of variable renewable energy. In 2023, battery storage grew by 120%, reaching 55.7 GW globally, but this is still insufficient. Furthermore, coupling the power sector with sectors like transport and heating is essential to create a more resilient and efficient energy system.

The 12 Leading Renewable Energy Countries

The REN21 report highlights twelve leading countries, including Spain, Chile, and Portugal, that have already managed to integrate an annual average of over 30% of variable renewable energy (solar and wind) into their power grids. Among them, Denmark leads with 67% of electricity coming from these sources, followed by Lithuania with 58%. Other standout countries include Greece, the Netherlands, and Spain, all surpassing 40% renewable penetration. Australia, Chile, Germany, Ireland, Portugal, Uruguay, and the UK also feature prominently, showing that high percentages of variable renewables can be achieved with proper planning and infrastructure investment. Some countries, such as Denmark, Portugal, and Germany, have even reached daily renewable penetration peaks of over 100%.

Path to COP29

REN21 emphasises that transitioning to a fully renewable energy system is achievable, but requires significant investments and integrated planning that considers all sectors of energy consumption. At the upcoming COP29, governments will need to demonstrate the same ambition for infrastructure as they have previously shown for renewable energy commitments.

Original Source: Ren21