LONDON , July 10,
2024 /PRNewswire/ -- Public grid capacity
constraints risk slowing the energy transition toward net zero,
with fast-growing distributed renewable energy assets such as solar
micro-grids and battery storage increasingly failing to connect to
the grid, needed to take full advantage of unpredictable renewable
generation. According to a new report from global technology
intelligence firm ABI Research, aggregated global
investments in public grid digitalization and transmission network
capacity expansion will need to reach over US$4 trillion by 2030 to maintain the energy
transition toward net-zero energy targets.
"To maintain the integration of exploding renewable energy
capacity, public grids need to be expanded urgently in terms of
adding huge amounts of sheer transmission capacity (think cabling
and substations) but also modernized in terms of both far-reaching
digitalization and a more decentralized energy network topology,"
explains Dominique Bonte, VP End
Markets and Verticals at ABI Research.
According to a recent announcement from the
International Energy Agency (IEA), global spending on grids is
expected to reach US$400 billion in
2024, showing systematic growth compared to flat yearly investments
of around US$300 billion
pre-COVID-19. However, grid investments will need to accelerate
significantly in the coming years to reach the targets mentioned
above, requiring new funding mechanisms and more flexible
regulation.
A growing share of public grid investments is
allocated to digitalization, which is critical for enabling
addressing demand-response fluctuations and flexibly redirecting
energy from where it is generated to where it is needed, in other
words making energy networks more agile. Grid digitalization
solutions offered by key smart energy technology vendors such as
Siemens, Schneider Electric, and GE Vernova include
transmission and distribution automation, networking and
communications, analytics for asset performance and quality
management, and advanced distribution and energy management
systems. Energy digital twins will be critical for improved
cooperative network planning and optimization.
"A good example of the severity of the impact of
public grid constraints on the digital economy is the limitations
imposed on the deployment of new data centers in cities like
Frankfurt, which is failing to
expand its energy network fast enough to accommodate exploding IT
infrastructure, mainly driven by power-hungry AI computing. This
risks slowing down much-needed data center capacity expansion and
endangering net-zero targets of hyperscalers such as Google, AWS,
and Microsoft," Bonte concludes.
These findings are from ABI Research's Will
Public Grids Become the Bottleneck for the Adoption of Industrial
Microgrids, Electrification, and Reaching Net-Zero
Targets? application analysis report. This report is part of
the company's Smart Energy for Enterprises and
Industries research service, which includes research, data,
and ABI Insights.
About ABI Research
ABI Research is a global technology intelligence
firm uniquely positioned at the intersection of technology solution
providers and end-market companies. We serve as the bridge that
seamlessly connects these two segments by providing exclusive
research and expert guidance to drive successful technology
implementations and deliver strategies proven to attract and retain
customers.
ABI
Research是一家全球性的技术情报公司，拥有得天独厚的优势，充当终端市场公司和技术解决方案提供商之间的桥梁，通过提供独家研究和专业性指导，推动成功的技术实施和提供经证明可吸引和留住客户的战略，无缝连接这两大主体。
For more information about ABI Research's
services, contact us at +1.516.624.2500 in the Americas,
+44.203.326.0140 in Europe,
+65.6592.0290 in Asia-Pacific, or
visit www.abiresearch.com.
Contact Info:
Global
Deborah
Petrara
Tel: +1.516.624.2558
pr@abiresearch.com
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SOURCE ABI Research