Powering the future: How resilient grids enable the Middle East energy transformation

Countries around the world are tackling the challenge to reduce their carbon emissions while ensuring affordable energy supply and enhancing energy security. The urge to switch to renewables is growing by the day. And recent reports show that global investments reached a record high of USD 500 billion in 2022. But can the current grid handle this crucial transformation? The reality is without a significant expansion and modernization of the current transmission grids, there will be no successful energy transition. Bloomberg New Energy Finance (BloombergNEF) estimates that doubling the length of the current transmission grid, equivalent to 152 million kilometers, is necessary to reach net-zero emissions by 2050. To be more precise: Our grids are not ready for the future yet.?

Investment in innovative grid technologies?

In addition to grid expansion, innovative solutions are essential for a successful energy transition. High-Voltage Direct Current (HVDC) technology plays a vital role in establishing a robust transmission grid. It enables efficient electricity transmission over long distances, with lower energy losses, compared with traditional Alternating Current (AC) lines. Interconnectors also facilitate a sustainable energy transition by sharing renewable energy resources across borders. The Middle East and North Africa have huge untapped potential. With their strategic geographic location and abundance of renewable energy capacity from wind and solar, these regions have a unique opportunity to play in combating climate change and providing, for example, Europe with renewable energy.

Additionally, as power generation becomes more decentralized, technologies like synchronous condensers will be essential to help balance load and manage fluctuations in power frequency. Furthermore, as renewable energies like wind and solar are characterized by their intermittent and unpredictable nature, grid stabilization technologies become paramount. Investments in Flexible Alternating Current Transmission Systems (FACTS) are necessary. These systems enhance the power transfer capacity of transmission lines and contribute to grid reliability by improving voltage stability and regulation.

Expanding the use of renewable energy sources in the grid necessitates a significant investment in energy storage capacity. To effectively store surplus power generated during off-peak periods and ensure consistent supply to consumers, the integration of large-scale lithium-ion batteries or hydrogen-based solutions will play an essential role. Storage of renewable energy also facilitates further industrial decarbonization through sector coupling speeding up green energy transition. For instance, Saudi Arabia has committed to achieve net-zero emissions by 2060, while also aiming to derive half of its electricity from renewable sources by 2030. This transition to an increasingly renewable energy mix presents challenges to the overall stability of the grid and energy supply. The implementation of innovative technologies to mitigate and stabilize fluctuations becomes imperative.

To accelerate energy transition, it is crucial to overcome obstacles and streamline approval processes. The lengthy lead time for approving and constructing transmission lines and subsea cables needs to be reduced significantly. Looking at various countries' targets to achieve net-zero, the world cannot simply afford to wait for more than 10 years to approve green projects. Simplified and accelerated approval procedures are essential for transmission grid upgrades and new electrical grid investments, to eliminate bottlenecks and strengthen infrastructure. The good news is that technology is not the issue and that the political will and social demand is there. So, what’s holding us back?

Instead of searching for obstacles and reasons why the green transformation cannot progress, we need to reduce complexity, believe in this joint vision, and identify energy transition as an opportunity for all. Renewable energy not only addresses climate change but also will enhance energy security through a greater distribution of resources, and in the long run reduce electricity costs. This will benefit us all: consumers and businesses.

If we stay on the current path, global emissions will rise, exacerbating global warming and a catastrophic threat to the planet. Therefore, transitioning to renewable energy and establishing sustainable, affordable, and reliable energy systems, supported by strong transmission grids, is essential. If we want current and future generations to live on a habitable planet, we must create a sustainable future by achieving net-zero targets – and this won’t happen without robust and resilient transmission grids in the Middle East and beyond.?