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IEA: The world will pay to shut down renewable capacity if it doesn’t invest in grids

19 September 2024
Electricity
energynomics

By the end of this decade, the world will have to pay to shut down large renewable energy production capacities, contrary to efforts to phase out fossil fuels more quickly, if countries do not improve their transport networks, for to better integrate the energy produced in photovoltaic and wind farms, reports Bloomberg.

Problems with transmission networks will put the world in a situation where it could lose around 2,000 Terawatt-hours (TWh) of wind and solar power, according to a report by the International Energy Agency (IEA), which analyzed how countries are doing against the increase in the share of renewables in their energy mix. A quantity of 2,000 TWh is the equivalent of the electricity production of China and the USA, the first two world producers, in 2023, according to Agerpres.

Much of this renewable energy production that will be lost will be the result of so-called “curtailment”, a situation where operators shut down renewable capacity for fear of overloading the grid.

If renewable energy cannot be effectively integrated into the global energy grid, this would mean a 20% lower reduction in CO2 emissions in the energy sector, if fossil fuels are used to cover the gap between demand and supply, he estimated IEA.

“In recent years, the world has made remarkable progress with wind and photovoltaic capacity as countries seek to strengthen their energy security and reduce emissions. But they will not fully reap the rewards without greater efforts to support the integration of these technologies into energy systems,” said Keisuke Sadamori, director of energy markets at the IEA.

The report sheds light on the challenges created by the world’s transition from fossil fuels to renewable sources. While gas and coal power plants can be built anywhere, renewable capacities are located in places that benefit from the sun and wind, often far from populated areas. That means additional resources to transport electricity to the grid and manage the balance between supply and demand.

Also, energy networks need more investments for expansion. The new renewable capacities that will be built in the coming years could end up in the situation where they will have to wait to be approved by the network operators, who will be in a situation where they will not be able to cope with the increased supply.

The International Energy Agency is the main energy advisory body of the 29 most developed countries. The agency was established in response to the first oil shock of 1973-1974 to coordinate the release of oil from reserve stocks.

 

 

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