Government published the Enabling Industrial Electrification call for evidence results last week. The key themes are not surprising, but some of the detail is more so:
💵 High costs of electricity relative to natural gas are the primary barrier to widespread electrification. A whopping 80% of respondents said financial barriers are severe or extremely severe.
⏳ Grid connection delays are lengthy - the average wait for an upgraded connection on an industrial site is 5 years, for those that responded. While generation asset connection queues grab the headlines, this shows Clean Power 2030 will need to look at connections holistically.
🔥 Technology gaps exist for high heat processes. Electrifying something that needs a flame is difficult. Unpublished DESNZ research notes there are electrification options for a number of industrial processes but they may not be commercially viable or scalable yet. Confidence in these technologies is also essential.
❓ Clarification is needed on the likely make up of the energy system going forward and the relative prevalence of technologies such as hydrogen, electrification and bioenergy, to support businesses making long term investment decisions.
📈 Electrification is likely to happen in stages, depending on whether a process/ site/ business requires high or low temperatures, and whether it's dispersed or clustered.
🥤 The juiciest bit for me? "Work is already underway to develop options to decrease the price of electricity relative to gas. This is a critical policy priority." And separately: "If barriers of cost and grid connection can be overcome, including through the Clean Power Mission, then this potential could be realised in the 2020s helping us to meet our near-term carbon budget commitments." We know Energy Intensives are getting enhanced cost breaks to support international delivered price parity, but this comes at a higher cost for all other grid-connected users. Really interested to see the policy options as they come to light here.
https://lnkd.in/egvYKCF5
