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Future UK Energy Scenarios- National Grid

National Grid, the UK electricity network operator, has produced a new report on its visions for net zero UK carbon futures. Unsurprisingly, renewables play the major role on the supply side in National Grid ESO’s four Future Energy Scenarios, with PV solar reaching around 70 GW by 2050 in the electricity-led Consumer Transformation (CT) scenario, and wind reaching 150 GW by 2050 in the fast change Leading the Way (LW) scenario. By contrast, natural gas use falls away significantly in all but Steady Progress (SP), the slowest decarbonisation scenario, and shale gas makes little contribution in all but SP ‘due mainly to reduced support from government and consumers’.

Green gas is however developed at various levels in the other scenarios, both biogas, from plant biomass/waste sources, and syngas, like hydrogen, made via either from fossil gas with CCS or via electrolysis using renewable power. In all, National Grid says that at least 190 TWh of hydrogen will be needed by 2050, providing between 21% and 59% of user energy needs. Some of it will be used for flexible balancing power, some for heating and some for transport and in industry. Biomass/biogas also play similar multiple roles, including for flexible balancing.

However, National Grid says there may be some conflicts. For example, since bio-sources are also needed for negative emissions technology and in hard-to-decarbonise industrial sectors, ‘this limits the amount of green gas available for injection into the grid’ for heat’. That may well be the case if, as is proposed, net negative carbon emissions are provided by 8-10 GW of Biomass Energy with Carbon Capture and Storage (BECCS). Not everyone is convinced that BECCS (and indeed CCS) will be viable at any significant scale, but the report warns that the UK may not be able to meet its legally binding ambition to reduce carbon emissions to net zero by 2050 without negative emissions from bioenergy combined with carbon capture & storage.  

Heating is the other area of potential problems. National Grid’s Consumer Transformation scenario assumes that there is a switch from gas boilers to electric heat pumps. Not everyone thinks this is possible given the limits of the power grid and National Grid do provide a System Transformation (ST) scenario, in which hydrogen gas is the main heating route, at least initially, using the old gas mains.  But it also looks to heat networks ‘which use heat from industrial processes, deep geothermal, data centres and biomass boilers where available’.
    
On the demand side, energy efficiency measures are seen as vital in all sectors and are ‘a fundamental step to get to net zero in Consumer Transformation. Here, the high efficiency levels of appliances and the use of heat pumps reduce total energy demand to more than 30% lower than in System Transformation by 2050’.  In addition, demand management can contribute significantly to demand reduction and also to flexibility to help balance the high levels of variable renewable generation, although National Grid also see a balancing role for extra grid interconnectors, up 20-25GW or more, in the 2030s, depending on the scenario. The rise of use of electric vehicles in all the scenarios can increase demand for power but may also offer V2G power storage capacity. At the same time, we may be able to look to further demand reduction: for example, in Leading the Way, there is ‘a 75% reduction in total energy demand for road transport due to a combination of electrification, automation and changing consumer behaviour’.

Nuclear

Be that as it may, National Grid certainly see nuclear still playing a role, but mostly longer term. They say in System Transformation, ‘the ambition to decarbonise with more centralised technologies leads to a focus on large-scale nuclear generation, while in Consumer Transformation, despite the focus on decentralised generation, we still see nuclear as transmission connected, but with greater uptake of small modular reactors. Steady Progression and Leading the Way have low levels of nuclear capacity. In Leading the Way there is a mix of technologies to decarbonise, including development ofsmall modular reactors in 2031. Despite this, rapid deployment of renewable and BECCS generation, combined with lower electricity demands than the other net zero scenarios, reduces the need for new nuclear. In Steady Progression there is some ambition to develop new nuclear projects; however, the first new project after 2030 doesn’t come online untilthe 2040s’. A very long way off then, with, in total, only 9GW in SP by 2050, and only 16 GW by then even in CT.

There are other more optimistic views on nuclear, as I will explore in my next post, but National Grid clearly do not see it expanding much, and given the state of play so far with new nuclear projects, even the long run-in times and low energy inputs predicted by National Grid  may be seen as wishful thinking, whereas renewables are clearly roaring ahead.  Mark Herring, the head of strategy at National Grid ESO, said ‘Across all scenarios, we see growth in renewable energy generation, including significant expansion in installed offshore wind capacity’. If we do need more power, and National Grid suggests we may, then that is likely to be where it can come from, although it may also be possible to reduce demand more than they assume, even in Leading the Way. The extent to which consumer behaviour changed during the Covid lockdown came as a surprise to some- and that was not factored in National Grid’s analysis.

Hydrogen

However, we do not know if demand reductions can be relied and we also do not know if P2G conversion efficiency improvements can be made to allow hydrogen to pay a major role. In the System Transformation scenario electrolysis only supplies a small part of the hydrogen used -most is from fossil gas conversion with CCS. Given the need for CO2 storage space, that does not seem likely to be the best way ahead, whereas, if P2G could expand then green  hydrogen could play many useful roles in flexible power balancing, storable fuels for transport, and pipe-delivered energy for heating.  Perhaps well beyond the 190 TWh or so National Grid envision by 2050 in Leading the Way 

That is just my speculation. More certain is that, as National Grid say, at least 3 GW of wind and 1.4 GW of solar need to be built every year from now until 2050, with zero marginal cost generation like this then providing up to 71% of generation output in 2030, and up to 80% in 2050. That includes a input from up to 10 GW of tidal power. A bit less convincing is National Grid’s view that Vehicle-to-grid (V2G) services could provide up to 38 GW of  storage flexibility from the batteries in 5.5m electric vehicles (EV). Could the local grid cope, even if that capacity was full and usable when needed e.g. in the early evening?


The power grid may be strained by EV re-charging and V2G transfers, and also if it has to provide power for heat pumps, but probably more likely than a full heat pump heating system, or one based just on piped hydrogen, is one with a mixed hybrid approach, electric heat pumps combined with hydrogen-fired boilers, the latter being used flexibly to meet peak demand.  National Grid look to there being ‘over 8m hybrid heat pumps responding to market signals and shifting demand between hydrogen and electricity systems by 2050.’ Well we shall see if that compromise works out: it’s the governments favoured option at present.

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