Eddie O’Connor Teruyuki Ono Michael Hayes Chairman, Executive Director, Global Head of Renewables, Mainstream Renewable Power Institute KPMG in E: [email protected]

Connected energy: Super grids: making the right connections for a sustainable future An attractive investment model for governments and private entities

14 | INSIGHT | #InfraConnect magine a home in using low-cost electricity generated in part from solar panels in Spain. Or massive wind turbines in Mongolia helping Ito power a factory in Japan. Super grids could make these and other dreams a reality in the near future, providing ready access to affordable, reliable and sustainable energy for consumers around the world.

#InfraConnect | INSIGHT | 15 The idea of global decarbonization and consumed. This has led to the modern will route power through a series of other the move away from fossil fuels toward incarnation of the and the idea is super nodes to where it is most needed. renewable power generation will only starting to gain real traction. For example, It can best be compared to a router in IT become a reality through rapid acceleration Greenpeace has released a report claiming systems. Super nodes will allow , of innovative technologies coupled with that a could allow the for example, to become one, interlinked some visionary thinking. This is what European Union (EU) to reach a 45 percent network which will route power to where makes the super grid idea so exciting. renewable energy share by 2030.1 it is needed.

A super grid is not just a “network of A key challenge for renewable energy A super grid could support multi-directional networks.” Put simply, a super grid is a large generation is the ability to move that power flows from multiple energy sources 2 scale transmission network that makes it power across long distances. Existing across very large regions. As a result, super possible to trade high volumes of electricity regional grids use that grids could improve energy reliability, permit across great distances. Fossil fuel power support the transmission of alternating the pooling of resources, and support greater 3 plants are typically located in areas close current (AC) from power generation plants economies of scale. Super grids could to population centers, which makes it easy to local consumers. These grids require also be connected with other super grids. to distribute electricity. The same proximity a significant amount of energy to move Other benefits of super grids could include between generation and consumption is power long distances.Even for short greater competition in energy markets, lower often not the case for renewables. Yes, distances, the movement of renewable prices, and stronger . Also, there is a treasure trove of offshore wind in power can overwhelm existing AC grids. the Super grid can be a trading tool which Europe located in the North Sea and solar The super grid, on the other hand, uses will enhance the security of supply of all the 4 is in abundance around the Mediterranean high voltage direct current (HVDC) that countries of the EU. Basin, but both are located away from high significantly reduces the loss of energy If Europe and the world are to meet the population centers. during transmission and helps to deal with targets set in the Paris The main issue is therefore trying to the variability of renewable power. A key Agreement, visionary concepts such as move that power from where it can be enabler is the super node. A super node super grids can be a part of the ultimate made cost effectively to where it can be is a piece of technology, or software, that solution.

Super grid concepts: Across Europe

Source: An engineering vision for a New Europe, Mainstream Renewable Power, http://mainstreamrp.com/an-engineering-vision-for-a-new-europe/

1 Do we need to build a European supergrid to secure our energy supply?, The Guardian, 19 June 2014, 2 Developing the Super-Grid, Energy Ireland, http://www.energyireland.ie/developing-the-super-grid/ 3 Technical Aspects of Grid Interconnection, UN, https://www.un.org/esa/sustdev/publications/energy/chapter2.pdf 4 Friends of the Supergrid

16 | INSIGHT | #InfraConnect Across Asia

Russia

Mongolia

S. Korea China

Japan

India

Source: Renewable Energy Institute, https://www.renewable-ei.org/en/asg/about/

Critical challenges remain context of the Paris Climate Agreement and How much renewable energy will Europe the European Union (EU) 2020 Strategy. need in the future? As with any large, complex infrastructure project, implementing a super grid will In the same way, different regulatory and Quite a lot. Super grids will support our involve finding ways to address a number tax regimes involving multiple countries access to renewable energy, and that will of critical challenges. would have to be reconciled and possibly be great because we are going to need adjusted. Questions of ownership involving Funding will invariably be a significant higher levels of renewable energy in the utilities, Governments and investors might obstacle. Estimates for super grid future. One of the big movements in the also become an issue. Onshore battery development range well into the trillions European energy industry today is in the storage will also be a key component in of dollars, principally for the construction of increased use of electric vehicles. It’s safe delivering this solution. In addition, the the grid.5 Given the scale of this cost, private to say that virtually all ground transport growing use of electric vehicles around the capital will be essential in making the super will be electrified by 2050. That means world could create a spike in demand for grid happen.It also follows that creating the that you’re going to have probably in the electricity that might change the location right regulatory and policy environment will order of 1,000 terawatts hours a year of and scale of development. be crucial in attracting private capital, and electricity just for ground transport. this brings its own challenges. However, So what does that mean in terms of lessons have already been learned from What the experts say about renewable additional demand? If we’re going to the private development of wind and and super grids replace the 50 percent of fossil fuels energy. The goal will be to replicate this Dr. Eddie O’Connor, Chairman of that we now use in Europe for electric model on a much bigger scale.6 Mainstream Renewable Power generation, then look no further than Geopolitical issues could also be a wind and solar. In round numbers, we concern in different parts of the world, Founded in 2008 by Dr. Eddie O’Connor, will need about 360,000 megawatts especially since super grids would almost Mainstream Renewable Power is an of wind energy to be built, and we invariably cross national boundaries. In independent global developer that delivers will need about 360,000 megawatts of terms of a European super grid, a coalition large-scale wind and plants solar energy. among governments in Europe will be to the world’s emerging economies. required to make this a reality, although Dr. O’Connor is the inventor of the the momentum is already there in the European super grid concept.

5 Let’s Build a Global Power Grid, IEEE Spectrum, 28 July 2015, https://spectrum.ieee.org/energy/the-smarter-grid/lets-build-a-global-power-grid 6 Feasibility Study: Synchronous Interconnection of the IPS/UPS, UCTE Study Group, 7 December 2008

#InfraConnect | INSIGHT | 17 Where do you see the greatest source What kind of future infrastructure plans Teruyuki Ono, Executive Director of renewable energy? will be necessary in order to ensure the of Renewable Energy Institute success of the Asia Super Grid concept? Very clearly, in the North Sea. It’s the energy treasure trove for Europe. It has Since its foundation in 2011, REI has worked The infrastructure necessary to realize the phenomenal wind speeds — 10 meters to establish Asia Super Grid, a major Asia Super Grid is several international grids a second — and it’s a huge area. We’re initiative aimed at interconnecting electric and several substations. These getting a 55 percent in the power systems of Asian countries to enable are normally constructed in Europe and the North Sea at the moment with current mutual benefits by exchanging abundant United States, so no special infrastructure technology, which provides about eight natural renewable energy resources, such is required. The technical and business 7 megawatts. The North Sea is also quite as wind, solar and hydropower. Before know-how already exists. The only thing shallow, so it’s actually very cheap to build joining REI, Mr. Ono served as a senior we need is the will to make it a reality. offshore wind farms. The other advantage official of Tokyo Metropolitan Government, is that relatively few people live in the responsible for environmental policy. What is required of infrastructure area, so local objections to development planners, owners and operators for What are your thoughts about an Asia are minimal. the Asia Super Grid to succeed? Super Grid based on your experiences as What political regime is needed to a leader in environmental policy and in Existing energy companies that own the allow the super grid to exist? dealing with environmental problems? domestic power grid in Japan might take the proposal of an international grid as a EU policy on energy is designed to ensure The Japanese industry threat to their vested interests. However, the functioning of the ; has been reluctant to expand the use of when power production is separated from ensure security of supply; promote energy renewable energy for a long time, and distribution in Japan in 2020, I believe efficiency and energy saving and the one of the excuses is — “Since Japan is a that transmission companies will see the development of new and renewable forms country of islands and has no international construction of an international grid as a of energy; and promote the interconnection electricity transmission network like new frontier for their business. I would of energy networks. in Europe, we cannot introduce large like them to have a vision for investing in

volume of variable renewable energy. the future of the transmission business. Given that all electricity systems are “The realization of the Asia Super Grid national entities, individual nations would connecting Japan and South Korea, Conclusion have to agree to a super grid proposal. China, and Japan and Russia with subsea For many of them this agreement would transmission lines will make such excuses The future has arrived for super grids. The take into account the fact that much of impossible, enabling us to dramatically concept is technically sound, the investment a nation’s generation would take place expand the use of renewable energy model is feasible, and the imperative to beyond its boundaries. in Japan. develop and connect super grids into existing infrastructure for sustainability is Security of the transmission system In your opinion, what is the biggest now undeniable. A European super grid would be an important consideration for challenge for developing the Asia Super would play a key role in cutting carbon nations. The current situation has almost Grid? emissions and making the most efficient all generation located within national use of valuable renewable energy resources. boundaries, so security is not such a large The biggest challenge is the lack of political The key challenges around ownership, issue. The concept of interdependency and consensus among the governments of the regulation and cost are not insurmountable, trust, which originally drove the formation concerned countries toward the realization particularly in an environment where the of the EU, would need to be re-affirmed of the Asia Super Grid, but all the countries levels of interconnection are already in the case of electricity. other than Japan are positive. I think that increasing and the movement toward full the stance of the Japanese government decarbonization is gathering pace. Clearly, would change as political tensions ease the infrastructure industry will be a major in East Asia. player in this arena.

8 About Asia Super Grid (ASG), Renewable Energy, https://www.renewable-ei.org/en/asg/about/

18 | INSIGHT | #InfraConnect If we’re going to replace the 50 percent of fossil fuels that we now use in Europe for electric generation, then look no further than wind and solar.

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