BAKU, Azerbaijan, December 6. Grid constraints often limit the full use of renewable energy. Contrary to popular belief, accommodating new variable renewable energy doesn't always require significant investments in grid infrastructure, Rystad Energy, an independent energy research and business intelligence company from Norway, said, Trend reports.
Currently, only 40-50 percent of grids are actively used, suggesting that improving efficiency could reduce the need for extra capacity, the research reveals.
By seamlessly incorporating proven and budget-friendly technologies like topology optimization and dynamic line ratings, there's the promising prospect of boosting transmission capacity by around 30-40 percent and 20 percent, respectively, the agency says.
This approach would markedly improve grid resilience, flexibility, and efficiency, Rystad Energy believes. Furthermore, implementing robust energy storage solutions could effectively manage demand surges during extreme weather conditions like heatwaves and cold snaps.
Moreover, investments in clean technologies, including solar and wind, are projected to surpass oil and gas investments by 2025. However, there is a pressing need to expedite this transition, especially in emerging nations and innovative sectors like green hydrogen, Rystad says.
The research notes that, as of 2023, approximately 70 percent of low-carbon investments were concentrated in eight countries, with China leading at 50 percent, and the G7 countries collectively representing 20 percent. The remaining 30 percent predominantly flowed into developed economies, with India accounting for 2.5 percent of the global low-carbon investment share.
Therefore, as Rystad Energy noted, it becomes imperative to foster early market demand for low-carbon products in emerging economies through strategic investments in mature end-user technologies capable of driving demand for electrification and clean technologies.