At the COP28 climate conference held in Dubai in December, the world’s nations pledged to triple renewable energy capacity by 2030.

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It’s a laudable commitment that takes heed of climate scientists’ warnings of the need to make significant progress on reducing emissions this decade, to keep alive hopes of limiting global warming to 1.5 °C.

Over 90 countries, including the US, China, and India, have committed to “net zero 2050” targets, which would see emissions from human activities in those countries dramatically reduced, with the remaining balance tackled by removing carbon from the atmosphere.

According to country-by-country analysis released by the International Energy Agency (IEA) in early June, domestic plans would add an additional 8000GW (gigawatts) of new renewable capacity globally by 2030 – but that only equates to 70% of the amount needed to hit that tripling goal.  

And demand keeps growing.  Current estimates are for an increased demand by energy-hungry data centres, doubling from 460 TWh to 1000TWh by 2026 (www.iea.org/reports/electricity-2024, 2024), the equivalent to the total electricity consumption of Japan.  Add to this the adoption of AI driving even greater demand.

Will versus reality

But the IEA pointed out that countries need to “accelerate implementation” if they are to live up to their ambition for boosting renewable energy production this decade.  

“Key challenges remain, from lengthy wait times for project permits, inadequate investment in grid infrastructure, the need to quickly and cost-efficiently integrate variable renewables, and high financing costs, especially in emerging and developing economies,” the IEA reported.

At Groundline, the gap between green economy ambitions and the reality of what we know is needed to meet them from an electricity infrastructure perspective, is concerning, as we have already written (Dithering on electricity infrastructure threatens Australia’s energy transition). It’s one thing to commit to new solar and wind energy generation projects. It’s another to be able to say with confidence that the electricity grid will be able to efficiently transmit the generated electricity to consumers.

In many parts of the world, the bulk of electricity transmission infrastructure relies on 1950s-era technology that needs to be replaced or upgraded to deal with both increased demand, and the challenges of managing the load on the network from renewable energy sources.

The renewables grid challenge

If we switched on all of that pledged renewable energy tomorrow, most electricity grids would fall over. High voltage electricity networks, as most of them currently operate, require a measure of electrical inertia to remain stable. That’s provided in many parts of the world by hydro, geothermal, coal, gas, or nuclear generation that is located near population centres.

Solar and wind, in comparison, come with spikes in production, which can cause network instability, and generation is typically further away from cities. Large scale battery storage infrastructure and pumped hydro schemes can help smooth out the load on networks but requires careful planning and development that should already be well underway around the world.

Unfortunately, in the markets where Groundline operates, including the US, the UK, Australia, and New Zealand, we can relate to many of the key challenges the IEA has identified. Achieving consents and approvals for new electricity grid infrastructure takes too long. Lines companies struggle to raise sufficient finance to upgrade infrastructure. In many countries there are major engineering skills shortages that cause project bottlenecks.

Overcoming these obstacles requires a coordinated approach involving government, regulators, and the energy industry working together to accelerate progress. At Groundline we are helping our customers make progress by leveraging their existing infrastructure to handle the demands of distributing electricity from renewables.

Fast-tracking electricity infrastructure

Cutting through red tape that slows down infrastructure projects. In our home country of New Zealand, the Government’s proposed Fast-track Approvals Bill could allow large-scale electricity infrastructure projects to move through the consenting process faster.  

Greenfields electricity infrastructure is technically easier to develop because you are starting from scratch and is often a default position of decision-makers and asset owners.  But it involves securing permits and consents, and often land access agreements or land acquisition, which can be a long-protracted task.

The reality is that to increase electrical infrastructure capacity and to provide the means for additional generation to reach the consumer, upgrading and uprating of existing overhead assets is usually quicker. Advances in conductor technologies, alongside an openness to this approach are key ingredients in the successful recipe if we are to achieve global green goals.

We can safely replace overhead line infrastructure using our catenary support system (CSS) for reconductoring over populated areas and infrastructure, for example. Capacity upgrades often require strengthening of towers and foundations, and other engineering work, which Groundline has expertise in globally. But we need to move faster with these upgrades and leave behind the short-termism that sees infrastructure operators reluctant to make investments now that align with the projected use of renewables in the middle of the century and beyond.

Helping you find pragmatic solutions

High interest rates in recent years haven’t helped asset owners and infrastructure investors borrow to invest in infrastructure. This situation necessitates more attractive financing options to free up capital for investments that will pay off over the long term.  

Investing in transmission infrastructure is not just a technical necessity but a strategic imperative for achieving our global climate goals. Governments, utilities, and private investors must collaborate to mobilise the necessary financial resources and implement policies that support the development of modern, resilient, and efficient transmission networks.

At Groundline, we help asset owners find pragmatic solutions, helping them make the most of their existing assets to improve resilience to climate change and extreme weather events, while helping them boost capacity in a sustainable way.

Whether we are involved or not, our main message here is that a failure to act swiftly will result in missed opportunities to harness the full potential of renewable energy, increased reliance on fossil fuels, a failure to meet the net zero targets by 2050 and a lack of resiliency for our communities.

This is about decision makers making a conscious decision to combine both new, greenfield infrastructure investments, with investments in upgrading and uprating existing assets.  This will provide both long-term solutions and speed to achieve our objectives.

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The time to act is now.

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