Page 20 - European Energy Innovation magazine - spring 2023 edition

Spring 2023 European Energy Innovation
20 ELECTRIFICATION

Exposure of transmission and distribution assets in Europe

The Coming Storm – Building electricity resilience to extreme weather, produced by Eurelectric with
technical advisor EPRI

electrification to reach net for investments in grid resilience, At EU level, adaptation must be
zero demand stronger action. as distribution networks are the tackled in partnership with mitigation
Electrification rates must indeed backbone of our electricity system rather than in silos. The EU climate
jump by eleven points by 2030 yet one of the most exposed to adaptation funding should also be
to meet the EU’s decarbonisation extreme weather and external reorganised to reflect the required
targets, shows Eurelectric’s Power attacks. risk-preparedness investments and
Barometer. A reliable and climate- involve all relevant energy actors in
resilient energy system is an essential Grid investments should amount to defining electricity crisis scenarios
enabler of this much-needed electric some €400 billion by 2030, out of and methodologies. Factoring in
take-off. which 8% (€32 billion) would be for the effects of the electricity market
resilience. This share is set to grow design on electricity resilience will
Will frequent blackouts and as the world is not on track for the be key, as market price signals can
massive repair costs become the 1.5°C scenario. However, this cost influence the stability of the overall
new norm in Europe? should be partly balanced out by the system by directing dispatch and
Preventing such grim scenarios increase in cheaper renewables and investment decisions.
demands power system operators, flexibility services which lower energy
utilities, regulators, and national prices. Finally, climate adaptation requires
authorities to embrace stronger all energy sectors to be on
resilience measures. It is urgent Since investments require regulators’ board. Stronger coordination and
to turn theory into large-scale seal of approval, policymakers communication between national
investments, actionable regulatory and national authorities must play authorities, transmission, and
frameworks, and integrated climate their part in facilitating adaptation distribution operators must therefore
adaptation plans. measures. A Resilience Incentive be enhanced to increase the sector’s
Mechanism should be set up preparedness for climate change-
Over the past decade, extreme to encourage utilities to pursue induced weather.
climate-related events have resilience and digital investments.
caused over €145 billion in economic System operators must then Going forward, we need to embrace
losses across the EU. If prevention cooperate with national authorities to resilience actions rapidly. This is our
is better than cure, then investing integrate multi-year investment plans best chance to ensure a robust and
in more adaptation measures now with national adaptation strategies resilient power sector that can support
would avoid much higher repair to protect and upgrade electricity the much-needed electrification of
costs later. This is especially true infrastructure. the European economy. l

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