Monday 22 January 2024

‘Grid readiness crucial for net zero’

Grid readiness and renewable integration are the primary hurdles in realising net zero goals in the power sector.

That's according to the ‘Future of Utilities’ study, released by Abu Dhabi National Energy Company PJSC (TAQA) and Bloomberg Media, which underscores the urgent need for coordinated action to accelerate grid development, aligning with the rapid growth of distributed renewable power generation.

Involving insights from nearly 600 global industry experts, the study suggests more than 50% of respondents identified grid infrastructure as the foremost obstacle for utilities aiming at net zero.

Nearly 90% of respondents anticipate a significant shift in the utility sector, advocating for increased change in operating models, customer relations and innovation.

BloombergNEF estimates a $21 trillion (£16.5tn) investment in the grid by 2050 is necessary for global electricity system expansion.

Furthermore, the Energy Transition Investment Trends 2023 anticipates electrified transport, renewable energy, and grids to dominate investments from 2023 to 2030.

The study suggests that utilities can expedite the low carbon energy transition by adopting consumer-centric models and embracing innovation and technology.