Grid planning and access

Long-term grid development planning is essential for effective renewable energy deployment. Often, grid infrastructure plans are not well aligned with expansion plans for power generation or with the emerging needs presented by distributed renewables.

The following planning and policy interventions may be considered:

• Grid expansion planning: Long-term national grid expansion plans need to be developed and regularly updated in line with renewable energy objectives and long-term decarbonisation or net-zero targets. Integrated plans can also classify the roles and responsibilities of TSOs and DSOs.
• Transmission-grid expansion: To varying degrees, 21st century electricity grids need to reflect renewable energy resource availability. In other words, the transmission grid that was previously planned around conventional power plants and load centres now also needs to reach areas with solar and wind potential, including offshore. In addition, grid planning can incorporate alternative solutions, such as procurement of flexibility services and operational measures to defer or reduce grid reinforcement needs.
• Distribution network upgrades: Distribution network infrastructure can be built out to accommodate growing levels of distributed generation. Grid operators can anticipate increasing demand from residential consumers due to e-mobility, heat pumps and other electrification trends, reflecting these demand-side trends explicitly in electrification scenarios and investment prioritisation.
• Cross-border interconnections: Grid operators with system linkages to different different jurisdictions need to establish and implement international plans for enhanced regional grid integration and cross-border electricity trading.
• Flexibility-first planning principles: Alongside conventional grid reinforcement, flexibility solutions like storage, sector coupling and demand management can be integrated into the planning process to enable more renewables and advance energy transitions.

Access regulation is crucial to make efficient use of grid infrastructure – a natural monopoly for the normally public operator-utility. Efficient and transparent grid-usage rules enable renewables and storage to operate on equal terms, supporting system flexibility, lowering integration costs, and helping maximise renewables and energy efficiency to meet decarbonisation goals.

Important grid access and usage considerations include:

• Non-discriminatory access: Open, transparent, and non-discriminatory third-party access to the electricity grid must be ensured through clearly defined principles, as well as protocols for grid congestion and contract or service curtailment.
• Transparent and cost-reflective tariffs: Network tariffs must be non-discriminatory (with the same rules in place for comparable users), cost-reflective (based on actual network costs), transparent, and compatible with distributed renewable energy systems.
• Unbundling of grid network operators: A legal and functional unbundling (i.e. separation) of grid operation from power generation and supply activities can improve grid access and optimise usage, as long as the operator exercises neutrality while procuring system flexibility and enable participation by distributed renewable power producers.
• Regulatory oversight: Independent national regulators (guided, in the EU case, by shared supranational rules) monitor compliance, approve tariffs, and resolve disputes related to grid access. They also set and enforce performance standards for generators, TSOs and DSOs.

Transparent connection procedures give renewable energy project developers clear information and more predictability on available grid capacity, timelines and costs. Without timely and non-discriminatory grid connection, projects can be delayed or stranded due to weak queue management, insufficient hosting capacity, lengthy connection delays, and limited visibility of network constraints.

Crucial policy interventions to facilitate successful grid connection include:

• Clear timelines and compensation: Regulations are needed to define clear timelines and ensure compensation to energy producers for connection delays that are attributable to network operators. Streamlined connection procedures that incorporate such provisions can reduce costs and risks for project developers.
• Simplified grid connection for small-scale systems: Simplified connection rules – including standardised technical requirements, digitalised applications and approval, and fast-track processes – can reduce connection costs for smaller-scale systems. Small-scale distributed generation (e.g. rooftop solar) requires different provisions than large plant set-up.
• Cost-sharing methods: Cost-sharing can be shallow, with producers paying only for their immediate connection, or deep, extending to upstream grid upgrades. Policies must also establish how grid reinforcement costs are allocated when such upgrades provide broader system benefits. Transparent cost-sharing increases investment security and clarifies responsibilities in relation to grid connection.
• Alternative connection agreements: Grid operators can be authorised to offer alternative connection agreements for providers of renewable energy plus storage, with conditions for firm and non-firm access, curtailment during congestion periods, and flexible or phased connection capacity. Agreements can also offer time-limited access with transparent curtailment and compensation rules.
• Grid code updates for renewables: Grid codes normally require updates to include VRE-specific standards and technical requirements, including inverter-based resources, as well as integrated communications and remote controllability wherever needed.

Digital communications technologies have become a key enabler for smart grids, which facilitate grid balancing while integrating renewables. Smart grids allow a dynamic balancing of variable generation with real-time demand across both transmission and distribution networks, helping optimise both distribution and transmission system operations. Advanced monitoring enables the integration of far larger VRE shares into existing grid capacity while also reducing integration costs.

Smart grid deployment involves several key policy considerations:

• Targeted incentives can drive the adoption of smart-grid technologies supporting VRE integration, including automated grid control, digitalised substations, and advanced power distribution and distributed energy resource management.
• Coordinated system operations architecture through national or regional control centres enables active distribution capabilities based on real-time system operations with clear interfaces between TSO and DSO control functions.
• Grid operators can control the output of renewable power plants and other distributed energy resources remotely, ensuring secure and efficient system operation based on transparent rules, effective technical standards and appropriate safeguards.
• Optimising grid performance requires renewable energy producers to provide real-time operational data to grid operators, subject to well-defined data requirements, access rules and cybersecurity standards.
• Dynamic line rating, grid boosters, high-temperature low-sag (HTLS) conductors, power flow controllers and related technologies can be tested and deployed to modernise operations, improve forecasting, manage congestion and facilitate flexibility procurement.
• Countries aiming to boost smart-grid and VRE uptake need to expand their advanced metering infrastructure and implement programmes and incentives for the deployment of smart meters.