The Risks
19Sep23
What could possibly go wrong?
As described in part one of Constructing a Network for a Renewable Future, the core of UK electricity infrastructure was built around coal fired generation plants localised to the naturally occurring coal seams within the UK. With increased decentralisation of future electricity generation and as major connection points move toward the geographic extremities of the grid, huge new limbs will be required to widen the network and existing infrastructure will need uprating to provide the required capacity currently predicted.
With routine maintenance and major refurbishment plans continuing to ensure the highly strung network is fit for use, challenges in delivery are likely to be exacerbated as we move to an era where electricity is in higher demand than ever before. According to the Pathways for the GB Electricity Sector to 2030 report, electricity demand will show a strong increase as we head towards the end of the decade. A projection corroborated by the current changes in our energy consumption habits. What problem is this likely to create for the energy construction industry, which by its very nature is bound by finite process timescales, constrained access to the network, stringent security of supply obligations and a dwindling pool of experienced resource? Read on to understand our views of some of the challenges that lie ahead….
The Strategy
What does the plan look like? Without clear communication of the full picture, how can the right areas be prioritised for development? A clear vision needs to be understood by all involved as scenarios are bound to change. Pushing all projects together will create chaos and lead to an inevitable bottle neck at various points which we unpack throughout this article.
Development Consent Orders (DCO) and Regulatory Complexity: Balancing Efficiency with Sympathy
Transitioning to renewables involves navigating complex regulations and obtaining Development Consent Orders (DCO) for major projects. This process can be a daunting, labyrinthine journey fraught with hurdles. It involves numerous stakeholders, environmental impact assessments, and public consultations. The complexity and length of this process can lead to delays and increased costs, which we must vigilantly manage.
However, we must also recognise the necessity of this regulatory complexity. It serves as a safeguard, ensuring that our transition to renewables is not only efficient but also sympathetic to the environment and the local communities. DCOs force us to consider the ecological and social consequences of our actions, pushing us to implement sustainable practices and engage with local communities. The challenge, therefore, is to find a delicate balance between efficiency and sympathy. Whilst streamlining the DCO process is essential for timely project completion, we must never compromise on our commitment to environmental stewardship and social responsibility.
The planning process is understandably rigorous and this quality and iterative process cannot be over looked as the impact on individuals is likely to be significant. However, improved efficiency in processing and progressing is required if governmental targets are to be even remotely achievable (with some projects required for the ambitious 50GW by 2030 tag line only just having lift-off, while the planning duration of 4 years average for electricity infrastructure is defined in this interesting Litchfield Report).
Coordination
A knee jerk reaction to hit ambitious targets from a siloed and disjointed industry has led to the risk of a patchwork design exacerbated by various new companies introducing themselves to the sector with the view of connecting renewable generation in an already challenging environment – clear coordination is paramount for a successful planning process to define priority areas for connecting to the network which will ultimately require less infrastructure.
With discrete electrical generation scaling down and becoming decentralised, the market for installing new plant is becoming accessible to a much wider range of investors and smaller, infant energy companies. While this provides exciting opportunity and potential for development, the associated risk is that, without coherent central guidance, a disjointed solution is formed. No clear coordination from an overseeing strategist will likely lead to a less favourable plan with increased challenges during connection to the wider distribution and transmission networks as companies learn the language, processes and system compatibility tolerances required to bring their new plant online.
Existing Practices
Policy, procedure and design guidance within the electricity sector has rightly been built and fortified over the past 40 years with learnings observed to iterate and improve what is one of the most robust systems on the globe. The flip side is that the documentation and bureaucracy that has been accumulated as a byproduct can, at times, be highly restrictive and cumbersome; removing the ability to swiftly plan, construct and energise new assets.
Old for New
The sites left behind by the decommissioning of coal fired power stations provide excellent opportunity to repurpose brownfield land. These sites are already well connected to the grid and with good transport access and large open expanses offering potential for multi functional redevelopment including the necessary new substations to act as central hubs for the evolution of the network. Considerations must be afforded however to the technical challenges of constructing on previously developed sites: Contamination of land with hydro carbons and asbestos containing materials mean care and budget is required to manage the land prep. Civils works, without careful positioning are likely to attract cost and programme elongation with large, historic power station structures leaving behind substantial foundations having been levelled only to ground during demolition. Non virgin ground will also need consideration during the design phase to ensure that this next round of infrastructure development leaves a legacy as hardy as the last. Again, the key to unlock these challenges is to be found during planning and design.
Materials and Global Market Dynamics: The Global Race to Net Zero
Our reliance on construction materials from global markets makes us vulnerable to external factors. Supply chain disruptions, trade disputes, and fluctuating material costs can wreak havoc on project budgets and timelines. However, we now face an additional, pressing challenge—the global race to net-zero carbon emissions. Countries worldwide are pledging to achieve net-zero carbon emissions, intensifying competition for critical materials like steel, copper, and rare earth metals, all essential for renewable energy infrastructure. This heightened demand places enormous strain on global commodities and production lines that have finite capacity.
As nations rush to secure these resources, competition intensifies, driving up costs and causing potential delays. Moreover, supply chains stretched to their limits become increasingly vulnerable to disruption, potentially threatening the progress of our renewable energy projects. Navigating this turbulent terrain requires not only robust risk management and contingency planning but also strategic partnerships and collaborations and an early understanding of requirements, enabling procurement of essential materials in a world where demand is soaring.
The Strain on the Highly Strung Network: Ensuring Security of Supply in an Intermittent World
As we transition to renewable energy, the challenge of managing our electrical network intensifies. With the integration of intermittent renewable generation sources, the network becomes more highly strung, requiring meticulous coordination to maintain reliability.
This heightened complexity is compounded by the increased volume of outage requests, as both existing assets require maintenance and new assets demand connection. The network must juggle these competing priorities while still delivering world-class security of supply to consumers and to do that, careful planning and decisive delivery is required.
Resource and Skilled Workforce Shortages: The Seven-Year Journey and the Necessity of Foresight
The shortage of skilled workers is a pressing concern that extends beyond mere recruitment. In the energy industry, we require specialised professionals like overhead line workers, experienced development, project and commissioning engineers. What sets these roles apart is the extensive time and experience required to become fully qualified.
Overhead line workers, responsible for the construction and maintenance of high-voltage lines, require years of training and hands-on experience to safely navigate the complexities of their work. Similarly, experienced development and project engineers, tasked with the planning and execution of renewable projects, need time to accumulate the knowledge and expertise required for such critical roles especially on major infrastructures builds.
Commissioning is an intense period of the construction process and one which is likely to exacerbate the resource and system access challenges previously mentioned – a vast amount of training and experience is required before commissioning engineers can work independently, which is understandable given the responsibility which these individuals carry. Commissioning engineers aren’t trained overnight and for those who aren’t in the pipeline already, the boat has sailed for projects coming online before the end of the decade.
In this context, foresight and decisiveness is paramount. To achieve the colossal feat of delivering major infrastructure projects by 2030, we must proactively upskill the workforce. This means investing not only in recruiting new talent but also in the development and training of our existing workforce. By anticipating the future needs of the industry, we can ensure that we have the skilled professionals necessary to meet such ambitious goals.
Stitching New Assets into Aged Infrastructure: A Complex Tapestry
One of the technical complexities in our journey toward renewable energy lies in seamlessly integrating new assets with aged infrastructure. Many older assets may be outside current specifications and require significant adaptation or replacement to operate optimally in this evolving landscape.
Consideration must be given to holistic substation site strategies. These are essential to ready the network for the future, ensuring that all components work harmoniously and can continue to do so for years to come. This may involve the replacement of aging transformers, switchgear or civil assets and other critical components to enhance reliability and efficiency. Such site plans are intricate endeavours that demand precision, engineering expertise, and careful coordination. They represent a pivotal step in the commitment to providing a resilient and robust energy network capable of handling the demands of the renewable energy generation model.
Responsibility for Safety during the Construction Process: Early Planning and Efficiency are Key
In the pursuit of transitioning to renewable energy, the safety of all involved in the is paramount and there becomes a very real risk during the construction phase if added pressure is accumulated due to reduced timescales. Early, decisive planning, traction from the outset, and efficiency of performance are essential to ensure durations for the finite processes of construction and testing are not rushed. With governmental pressure and considerable commercial interest in connection dates, inevitably, they won’t be flexed; we have the time, but we need to act together and immediately.
Safety encompasses not only the physical well-being of the workforce but also the security and reliability of the energy network. It is our duty to uphold the highest safety standards throughout every stage of the construction process and that starts from conception and must continue for the lifecycle of the assets we install.
In Conclusion
The path toward a renewable energy future in the UK is fraught with challenges and risks during the development and construction process. Each of these challenges demands meticulous planning, innovative solutions, and collaboration among stakeholders. In our upcoming third instalment, we will explore the future of the network. We shall scrutinise whether we are adequately preparing for sustainable operation and whether our investments are poised for the long term.
During my time in the industry, frustratingly, the behaviour I’ve witnessed is to peer through the rear view mirror. For a generation, work has been reactive and based on what is needed in the short term. If we are to successfully overcome the challenges of expanding network at the desired rate, the blinkers must be removed. We need to have clear visibility as we move forward.
As vast and unrelatable as the problem may be, it’s important that we zoom out, put aside sovereign borders and understand that this problem is one that we share as people around the globe. Racing for a solution in one area at the detriment to others may be the obvious approach on a macro level but complex startegising, planning, collaboration is key to ensure a cohesive approach to tackle the problem and deliver the most effective and suitable solution. This rolls down to the national development level, a clear lead needs to be taken from a vantage point that affords visibility enough to create a coherent plan. Secondly, we need to remain aware that this can only be stage one – and the challenges being faced for the initial phase of “the plan” are things from which we can learn to become more responsible when we plan for the future.
The challenge is huge but, in my experience, tight timescales (with clear focus) are synonymous with efficient delivery. Together, we can shape a renewable energy landscape that powers a greener and more sustainable future for all. The time for action is now.
Our Services
At Monui, we have a fantastic ability to understand the risks associated with strategic, tactical and macro level electricity infrastructure planning and construction. Whether you are an asset owning client or a contracting company tasked with delivering construction work, we have the expertise to define your exposure and help you to defend your position while striving for excellence of solution. Our ability to identify risks and formulate a mitigation plan to ensure you remain in control is market leading. Get in touch and have a chat. Whether you have a specific project in mind or are keen to seek guidance, we’d be happy to hear from you.
Chris.
References:
Pathways for the GB Electricity Sector to 2030 – 2016
Litchfield Report – DCO Friend or Foe? – 2015