Comment: Achieving the new age of electricity

According to the IEA’s World Energy Outlook, we are entering the ‘age of electricity’, with electricity demand set to increase exponentially and the contours of a new energy system being defined by governments across the globe. Here in the UK, the government’s recent Clean Power by 2030 Action Plan outlines a path forward for delivering Labour’s mission – a clean energy system by 2030 – while also making the UK a ‘clean energy superpower’.

Globally, a record level of clean energy came online in the last year, including more than 560GW of new renewable power capacity. But to stay ahead of the curve, the UK must make sure it’s taking full advantage of the abundant potential of renewables. To do this, we must do three things: build a flexible grid; address our green skills shortages; and create a stable policy environment to enable more clean energy to come online as quickly as possible. 

Building a flexible grid

As we increase our dependency on renewables, we need a secure, resilient and flexible power system. Renewable sources are weather-dependent, and with electricity demand set to increase as we electrify transport and heat, our grid is undergoing a huge transformation.

Not only do we need to expand and upgrade thousands of miles of grid infrastructure, but we also need to build a smarter grid that is equipped to deal with greater amounts of wind and solar coming online. By storing energy from renewable sources for times when demand is high, batteries allow the system to operate more efficiently, reducing the risk of blackouts and dispensing energy even during periods of shortfall, while reducing the need for gas-fired backup generation.

The government’s Clean Power by 2030 Action Plan states that 23-27GW of battery energy storage system will be needed by 2030 to reach our clean energy targets, with a Low Carbon Flexibility Roadmap to follow in 2025. While the devil is in the detail, the government’s commitment to integrating battery storage is a strong start and will be key in enabling the rapid deployment of renewables, reducing carbon emissions and ensuring security of supply across the UK. 

Green skills for a green transition

The energy transition is a huge opportunity for job creation, with new industries set to grow as we shift to a clean energy system. However, to build a smarter, stronger grid, we need a skilled workforce. 

Today, the energy industry is facing skill shortages. Many clean energy sectors compete for the same limited pool of trade workers, from construction workers to electricians, and those with the necessary skills are in many cases already in short supply in the general buildings sector. Encouragingly, the government’s Action Plan has committed to convening a new supply chains and workforce industry forum for key clean power sectors, as well as maximising domestic opportunities for clean energy supply chains.

As the government gets to work on these key areas, there are two sectors that are desperately in need of focus. Firstly, electrical engineers, who are essential for all areas of clean energy development. The second is planners. The government has committed to recruiting 300 additional planners across the country to help planning offices deal with the large workload that many are facing, but little detail has been announced on how this will happen.

Industry, government and education sectors need to work together to make jobs in these fields attractive, with easy and varied entry points. Programmes such as Destination Renewables, an award-winning education programme developed by EDF Renewables and DP Energy, are a step in the right direction to ensure greater engagement and awareness about the careers available across all areas of development. 

A strong and stable policy landscape

According to the IEA’s 2024 World Energy Outlook, scaling up clean energy investment depends on policy certainty, data reliability and strong governance. Fast deployment depends on the promotion of a stable policy environment, and crucially, maximum notice of future changes. The new government has taken a huge step towards this, with bold commitments outlined in its Action Plan that range from reforming the connections process to concluding its Review of Electricity Market Arrangements (REMA).

While this is a vital first step, the Action Plan must be followed up with further detail to provide the certainty that the industry needs. Within this, it should focus on three key areas. Firstly, clarity on how it will increase grid capacity to reduce delays in connection and ensure transmission charges are stable. Secondly, implementing a quicker, more consistent approach to the planning process, to reduce costs and bring local communities on the journey. Lastly, its market reforms must be focused on providing long-view leadership and certainty. For example, following the recent – more successful – Contract for Difference (CfD) auction, the government should look to increase the CfD duration to 20 years to further reduce strike prices, and set out a multi-year schedule for future CfD allocation rounds to give investors and developers increased visibility of the market. 

The age of electricity is now

As we enter a new age of electricity, we need to ensure that the UK has the grid infrastructure, the skills and the policy environment to support the rapid deployment of renewables. By improving grid flexibility, addressing skills shortages and implementing robust policy to incentivise investment, the UK can become a global leader in clean energy – providing energy security, delivering on our 2030 targets and accelerating our transition.

David Acres, head of policy at EDF Renewables UK & Ireland