The energy transition has drawn widespread attention, as governments and companies around the world work to reduce the world’s dependence on carbon-based energy. But while headliners like electric vehicles, solar panels, and wind turbines grab all the attention, they’re only responsible for a fraction of the work.
Much like a theatre production, the success of the energy transition depends on the backstage crew—the crucial but often overlooked parts of the system. These components are just as vital as the headliners in the spotlight and may just prove to be better long-term investments.
For many countries, renewable power sources like wind and solar are leading the transition. However, wind and solar pose a challenge for grid operators – they don’t work when the wind isn’t blowing, or the sun isn’t shining.
For example, the UK can generate around half of its power from renewables at noon on a clear day, but by evening, renewables may only cover 15% of demand. Yet the show must go on, and the lights need to stay on.
So, what fills the gap?
Natural gas plants make for a pragmatic solution – they emit half the carbon of a comparable coal plant and can be quickly switched on and off, complementing wind and solar. Much like a reputable understudy ready to take to the stage when the occasion calls for it.
This means gas producers and distributors like Shell, turbine makers like Siemens Energy, and developers of “peaker” plants like Drax, who can supply extra power when it’s needed most, will likely remain essential members of the backstage crew.
For systems without sufficient gas, energy storage can also serve as a ready understudy.
On sunny days, California generates more solar power than it needs, using the excess to charge batteries like those in the Luna farm operated by Siemens Energy and AES.
In the UK, Drax’s “pumped hydro” facility in Scotland buys power when it is plentiful and cheap and uses it to pump water uphill through a dam. Later, when power is scarce, and electricity demand is high Drax lets that water flow back downhill, capturing the power and selling it back to the grid.
Intermittency isn’t the only challenge – distances matter too. We are shifting from compact power plants near cities to dispersed wind and solar farms located farther away. The largest offshore wind farm spans over 450 sq km located off the coast of England and is 200 km away from the nearest large city. Our energy system is going to become a lot more cable intensive.
Cables can represent up to 25% of the total cost of an offshore wind farm1, a boon for cable makers like Prysmian, one of only three western companies capable of making and laying high voltage undersea cables. Cable interconnections also come in handy when the system needs to import power. Most evenings, California imports around a quarter of its power from neighbouring states that burn more gas, and on most days, the UK gets a tenth of its power from France ’s ample nuclear fleet.
