Around the world, retrofitting and electrification efforts are gathering pace to meet ambitious sustainability targets but the strain on the power grid is emerging as a critical bottleneck. The issue of grid capacity during the energy transition is not just theoretical; take the example of the recent power cut across both Spain and Portugal, the largest power cut in recent European history. Investigations are still ongoing into what went wrong with the electricity system, which impacted some 60 million people, but experts say infrastructure investment is essential.
The European Union's power grid mostly dates back to the last century, with half of the lines being over 40 years old. The increase in green energy production and booming demand from both data centres and electric vehicles require an immediate overhaul of the grids that also need digital protection to withstand cyber attacks.
This is where the private sector has a fundamentally pivotal role to play, going beyond simply conducting business; it involves a proactive, strategic approach that encompasses advocacy, collaboration, and long-term planning.
Specifically, the private sector can significantly influence the direction and pace of necessary infrastructural changes by actively advocating for comprehensive grid upgrades. This advocacy is most effective when conducted in a robust and transparent partnership with the public sector, ensuring that regulatory frameworks and investment decisions are aligned with the urgent need for grid modernisation. Furthermore, direct and consistent collaboration with Distribution Network Operators (DNOs) is essential. By sharing detailed and accurate energy demand forecasts, the private sector enables DNOs to synchronise their infrastructure planning and upgrades with anticipated increases in electricity consumption.
This level of collaboration ensures that the industry's energy needs are not only understood but actively incorporated into the long-term strategy for grid development. Consequently, the private sector's involvement in these areas is not just beneficial, it is crucial for driving meaningful and sustainable change in the energy landscape, ensuring a reliable and robust power grid capable of supporting future electrification efforts and sustainability goals.
