Consultancy Cornwall Insight has suggested that hybrid energy hubs (HEHs) could be a solution to the rapid reform needed to meet the goals of the Clean Power 2030 initiative.
HEHs, where several types of renewable energy generation are co-located and share a single grid connection, can accelerate the connection of renewable generation, reduce the level of investment required and lower the amount of land needed for grid infrastructure, such as substations and transformers.
The report was commissioned by clean energy provider Telis Energy UK (TEUK). According to the report, HEHs can generate power up to 50% of the time, a significant increase on standalone renewable sources, with solar operating 11% of the time and wind around 30-35%.
Further, Cornwall Insight’s report argues that HEHs promise to ease the burden on NESO and provide grid stability, if internally optimised. In its high level SWOT analysis of the system, the analyst highlights that HEHs will require advanced optimisation and modelling, and that optimisation carried out alongside construction is more efficient.
This presents a challenge; the co-located technologies that make up an HEH could be in different stages of development and come from different economic environments. Although the report argues they could ease grid bottlenecks, it does concede that the use of HEHs raise questions of their own, particularly as policy uncertainty remains.
Still, Ratnottama Sengupta, senior consultant at Cornwall Insight, said: “The benefits of hybrid energy hubs could outweigh these concerns, and if the hurdles can be overcome, hybrid energy hubs could become a powerful tool in our transition to a net zero future.”
Debates around the review of electricity market arrangements (REMA) and Transmission Network Use of System (TNUoS) charges particularly impact locational decisions. Recently, Ofgem proposed a “temporary cap and floor intervention” to reduce uncertainty around the future range of TNUoS charges, particularly in the north of Great Britain.
TNUoS charges are intended to recover the cost of installing and maintaining the GB transmission system, including offshore resources, and apply to various grid-connected assets including generators, suppliers, transmission demand directly connected to the grid and embedded generators.
Delays in grid approvals is another potential threat to HEHs, according to Cornwall Insight’s report. The consultancy concludes HEHs have a strong business case overall but TEUK, with support from the National Energy System Operator (NESO) and government, would have to address certain challenges—the majority of which it suggests policy change would solve.
William Duncan, CEO at Telis Energy UK, said: “We are steadfast in our commitment to bringing innovative clean energy hubs to the UK, and are confident that this approach will solve multiple issues from intermittency to grid connection issues.
“To make this ambition a reality, the industry will need the support of policymakers to ensure that regulation is adapted to match innovation in the sector. We look forward to working with partners and the UK government to inform this approach.”
The NESO’s advice to government for achieving clean power by 2030 suggests several system, market and infrastructure changes in line with two primary pathways that deliver clean power.
Alongside its Clean Power 2030 report, the NESO has published consultation questions for its Connections Reform project. The consultation builds on ‘readiness’ proposals already being taken forward through urgent code modifications. The NESO proposes the reformed connections process and entry to the reformed connections queue should be based on a combination of project ‘readiness’ and ‘strategic alignment’.
