Update |
Permission to build: that‘s what Eurelectric members want
Identifying the game changers needed to step up renewable energy investment was the theme of Eurelectric’s Power Summit 2022, Brussels, 15-16 June. Janet Wood reports
Eurelectric chief executive Kristian Ruby spoke about moving from target-setting to a “decade of delivery” of a renewables-led industry. To achieve that, the most frequent ‘game changer’ named by the lobby group’s members – power utilities and distribution networks across the EU and the rest of the European continent – was a change to permitting that would speed through the necessary development. It was clear that was as important for new energy vectors such as hydrogen as it was for renewables.
Patrick Graichen, State Secretary at the Federal Ministry for Economic Affairs and Climate Action, Germany, said that the renewables industry needed to ramp up its installation rate by three or four times to deliver on its targets. It had to ramp up production and fabrication capacity to match or Europe would be an “input business” for its technology.
Accenture worked with Eurelectric to research broader views on potential game changers, in advance of the summit. Melissa Stark, Accenture’s global renewables and energy transition services lead, said there were five: ‘raise the game’ on renewables and the grid; electrify everything; strengthen grids to be the backbone of the future energy system; make the most of the demand side; and provide a clear framework for investment. Permitting can take from three years to as much as a decade, Graichen said, and that matched delegates’ experience. As a result, across Europe four times as much wind is in the planning system than is under construction. Wytse Kaastra, Accenture managing director who leads on utilities and sustainability in Europe, said that Europe has not seen this scale of planned investment since World War II. Discussing the permitting problem, he said, “All our systems are about building single things. For a building we take three years to agree on it. We don’t have that
time any more and the scale is much bigger than a single building. We need to build hundreds of [wind and solar] farms. Europe’s way of working does not fit the requirements in terms of speed and acceleration.”
The power industry has “learned the hard way” about ‘not in my back yard’, he says: “That has been underestimated and as a consequence poorly managed in terms of engaging consumers and having a collective effort. That is mission-critical.”
This takes the issue beyond the industry itself and into society as a whole. The entire population has to benefit from the transition if it is to give its support to a step up in building out renewable energy infrastructure. That support is also needed in the long term, as Stark reiterated, as it is also key to using renewables in the cheapest and most effective way, by inviting consumers to be active on the ‘demand side’ and help manage variability of supply at least cost.
Can a name hold back an industry? The EU wants to cut permitting in many areas to a year and the European Commission has floated proposals to help its member states step up the installation of new renewables projects to try to keep plans on track. To help dissolve the permitting barrier to construction it has proposed so-called ‘Go-To areas’, where permits would be sped up with measures such as environmental assessments carried out on a regional basis and renewables classified as being of ‘over-riding public interest’, severely limiting the grounds for objection.
The Eurelectric summit delegates broadly supported the aim behind such accelerated development zones, but they were quick to sound one warning – the name. ‘Go-To’ zones could quickly see other areas regarded as ‘No-Go’ zones,
Kristian Ruby (photo: David Plas)
several speakers warned urgently. Concerted effort from opponents could see that distinction becoming a de facto block on development, with projects told to ‘go there’ – ie to the Go-To zones. That was far from being the Commission’s aim. It’s not clear what would be a better name for these ‘acceleration zones’ which would also bring accelerated industrial development as local supply chains will have to be doubled or tripled in size. First, however, the Commission has to heed warnings over its current choice of name. Other proposals from delegates included ‘triage’ of projects, so the best projects would not be held up by ‘blockers’ with marginal economic benefit. Also important was making it clear where grid capacity was close and available. In this context GB’s ‘Open Data’ initiative won plaudits. That requires networks to provide data on network assets and usage in a simple-to-use format for third parties to access. The information made available saves developers time but in a virtuous circle it meant better quality projects were proposed, the meeting heard. Speakers pleaded for similar openness in other countries – as, in fact, is already required under EU legislation.
Ukraine promises to be a market for Europe’s energy companies
The audience at the Eurelectric summit listened to a plea from Ukraine that they stop buying from Russia – putting a brake not only on fossil fuels, but on equipment and on Russian goods in general. In a live broadcast to the meeting Farid Safarov, deputy minister at Ukraine’s Ministry of Energy, said, “Your business many be affected, but in the longer term you will be paid back in full”. Safarov said that Ukraine was restoring tens of thousands of kilometres of cables and reconnecting households. Looking
forward, he said that Ukraine would be a “big market for energy companies” – and promised Ukraine would help Europe reduce its reliance on Russian gas. He welcomed the industry’s speeding up of plans to synchronise
Ukraine’s electricity grid with that of Europe, which was achieved in early March. And he looked forward to the start of market coupling – a step that will be brought closer by Ukraine’s new status as an accepted candidate for EU membership.
8 | July/August 2022|
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