Philip Aikinomioria

ARM | Classification: INTERNAL USE Main Challenges in the Energy Sector to Achieve Net Zero Carbon Objectives Philip Aikinomioria March 2023 Infrastructure for Impact 1 ARM | Classification: INTERNAL USE Achieving Net Zero Carbon in the Energy Sector UK energy market, major challenges and proposed solutions as regards to electricity transmission UK Electricity Energy Mix 2050 ~50% UK target year to achieving net zero emission and must also limit average temperature rise to 1.5C. Over 50% of UK’s electricity is from zero-carbon sources as of 2022. Expected Increase in electricity demand in UK by 2035 because of the shift from fossil fuels to electricity as the primary fuel in the transport and building sector. FY2010 • Low capacity of transmission lines • Electricity transmission loss over long distances • Transmission infrastructure upgrade to meet the increased demand Proposed Solutions • Modernization of transmission systems to handle distributed renewable sources 35% Feb 2023 51% 73% 0% FY-% Fossil fuels Imports Digital threats & unpredictable weather conditions Capacity levels of transmission lines 0% 13% 24% Zero-carbon Major Challenges Identified 1% 1% 2% • Unpredictable weather and grid imbalance from unstable renewable energy source • Cyber risk and loss of customer data Others Planning and permitting challenges • Delay in project timelines from awaiting approvals from planning commissions • Impact of infrastructure development on the environment • Digital transformation, advanced management systems and use of AI to improve prediction and weather forecast • Streamline planning to speed up project development of renewable generation and transmission • Flexible zero carbon technologies and large-scale storage to always meet demand • Sustainable construction to minimize impact on the environment