IGEM Policy Response - The role of gas in a power system transformation

It is widely recognised that the UK requires a significant level of new renewable energy infrastructure in order to achieve net zero emissions by 2050. In support of this imperative, the government announced its creation of a Mission Control for Clean Power, being headed up by former Climate Change Committee (CCC) chief executive, Chris Stark. This mission board is tasked with the challenge of delivering the government’s target of clean power by 2030, a reduction of five years from the previous target.

Rapid decarbonisation of the electricity system

Reflecting on how this transformation can be achieved, the National Engineering Policy Centre (NEPC), the policy arm of the Royal Academy of Engineering, has published a new report calling for a radical shift in approach to deliver a decarbonised electricity system and for it to be a central part of the government’s industrial strategy. The report, ‘Rapid decarbonisation of the GB electricity system’, sets out what a radical approach would look like, across three areas :

• Driving rapid system transformation – how to approach electricity system decarbonisation as a major infrastructure programme.
• Building the system – the elements of the 2030 electricity system and how to deliver them on accelerated timescales.
• Near-term progress needed primarily for post-2030 – what has to be done now to set a path for the much larger post-2030 electricity system serving mobility, space heating and much of industry.

The NEPC have stated that a plan is needed quickly, that prioritises pace over perfection, and outlined six big changes that will need to underpin a new approach:

• Building strong industry and public support for the vision
• Ensuring strong central leadership and governance with engineering at the forefront
• Delivering a more flexible, digitally enabled, cyber secure system
• Adopting a proactive approach to procurement and regulation, that ensures capacity amid global competition
• Addressing planning and consenting, and the long lead times for transmission infrastructure and connection delays
• Retaining a long-term view, ensuring that 2030 actions align with and do not compromise the longer-term goal of Net Zero by 2050

As the report states, the physical delivery of a decarbonised electricity system is fundamentally an engineering challenge that needs the highest levels of political and engineering leadership. It also needs to be grounded in robust economics that secures societal buy-in, and successful navigation of the contentious issue of accelerated planning and consenting.

However, the same can be said for the transformation of the gas system to deliver for net zero, with the electricity system we know today relying on the gas system for peak energy demand and the provision of flexible electricity generation capacity.

Since the decline of coal-fired power generation, gas has performed an increasingly important role in ensuring the security of UK energy, and in providing flexibility to match demand and enable integration of renewable supplies. There are currently 308 gas-fired power stations connected to the gas grid. Gas turbines account for 32 or these at 29GW capacity – all but one of these are connected to the gas transmission system. The other 276 are gas engine sites located across the gas distribution system with a 4.5GW capacity, with another 75 being built that will add another 1.4GW capacity. In addition to these assets there is a large population of gas CHPs, such as those in office blocks, industrial facilities and hospitals, that IGEM estimates could present a further 2-4GW of local gas-fired generation capacity. Maintaining an adequate level of flexibility and reliability as we build renewable capacity will be critical to energy security.

Attempting to achieve a clean power system by 2030 rightfully claims the use of ‘Mission’. It’s a term traditionally paired with a huge ambition, that common-sense probabilities of success suggest isn’t achievable. However, it is still achievable, provided it is delivered with universal laser focus, the right engineering expertise, appropriate policy support and fast-flowing investment.

The call for a radical approach is warranted, given the breadth and scale of action needed and the somewhat sluggish nature of the UK’s ability to deliver system transformation at this level. 

The challenge of decarbonising the power system, at the same time as growing electricity demand, brings focus to the additional generation capacity and potential emissions that come with meeting the added demand. This point must be monitored closely, including the need to ensure capacity of generation is in place across a secure system, utilising flexible options like hydrogen or natural gas (with and without CCS) when other shorter-term flexibility and storage options have run out. This should be considered even more acute in the context of declining nuclear generation capacity and potentially zero nuclear capacity post-2028 – before Hinckley Point C potentially coming online after the 2030 clean power target.

As the NEPC report emphasises, 2030 actions must align with, and should not compromise, the longer-term goal of net zero by 2050. Part of this need is to ensure that the decisions made to rapidly achieve a clean electricity system are not at the expense of flexibility, resilience and cost in the medium to long-term. Although the government have committed to maintaining a strategic reserve of unabated gas plants alongside its clean power by 2030 mission, what is needed concurrently is an aligned plan for the gas system which ensures it can support both a decarbonised electricity system by 2030 and support the longer-term need and opportunity for sustainable gases across power, industry, transport and buildings.

The need for energy system flexibility

Research by the Carbon Trust, in their Flexibility in Great Britain report, evidences how crucial flexibility is for the security, agility and resilience of our future energy system. They also demonstrate that energy flexibility can reduce the cost of meeting net zero and mitigate the impact of wider changes in the energy system, ensuring we reach net zero efficiently, effectively and at lowest cost. They outline that investing in flexibility is a no-regrets decision, with the potential to deliver net savings of up to £16.7bn/yr across all net zero scenarios analysed in 2050. This is echoed in ENA’s Hydrogen Network Plan, which highlights that a more flexible energy system based on hydrogen and biogases, alongside electrification, could save around £13bn a year by 2050 compared to an alternative pathway that relies on electricity alone. This further highlights the importance of retaining a longer-term lens on what a balanced, integrated, lowest cost energy system looks like in 2050, while planning and delivering on short term goals.

The National Energy System Operator (NESO) will be instrumental in helping the government’s Mission Control develop a resilient pathway to clean power by 2030. At this year’s IGEM Policy Conference, Julian Leslie, Director of Strategic Energy Planning and Chief Engineer at National Grid ESO presented details on the remit of NESO (in its transition from ESO), and the national and regional spatial energy plans they are developing. It was encouraging to hear that there was emphasis on a whole-system view of the energy sector and how the energy system could be co-optimised across electricity, methane, hydrogen and CCS. It was clear that maintaining flexibility and security on the pathway to decarbonisation was an overarching priority for ESO. It was also reassuring to hear, that in their transition to becoming a cross-vector energy system operator, they were committed to scaling up in-house resource and knowledge of gas.

The IGEM team has experienced first-hand ESO’s commitment to engaging with and understanding the gas sector. We were honoured to host an IGEM-ESO engagement event earlier this year, showcasing gas sector technical innovation and decarbonisation plans.

We welcome ESO’s publication of its Future Energy Scenarios, presenting several strategic energy journeys to support the UK’s decarbonisation journey to net zero, which includes the ‘Hydrogen Evolution’ pathway. There is a build-up of hydrogen demand to considerable levels across all compliant pathways, which comes from both green and blue sources. We will continue to engage with the team as these pathways evolve and they develop their Strategic Spatial Energy Plan (SSEP), Regional Energy Strategic Plans (RESP) and Centralised Strategic Network Plan (CSNP).

How is the gas system stepping-up and supporting the planning and delivery of a clean power system?

UK gas network companies are already playing an important role in supporting the decarbonisation of the power system, by looking at how existing infrastructure can be repurposed to carry sustainable gases and exploring how hydrogen production, transportation and storage solutions can be safely integrated into the gas system through pioneering research and development projects.  

There are a number of development strands requiring our industry to deliver on, which are set out below:

Skills:

The CCC’s ‘A Net Zero Workforce’ report, estimates that between 135,000 and 725,000 net new jobs could be created by 2030 in low carbon sectors. As we transition to a clean energy system, knowledge and skills across the range of energy technologies and innovations becomes increasingly crucial for the UK’s net zero workforce. Attracting new entrants and reskilling/upskilling existing workers in growing and transitionary sectors, across the spectrum of low carbon jobs, will be critical – especially in the face of an aging engineering workforce and shortages in specialist skills. Competition for STEM skills is a low carbon sector-wide issue and needs to be tackled as such.

Natural gas and the existing gas networks will perform a critical role in the transitionary period towards net zero and the industry will be able to offer high-quality, long-term career opportunities for engineers, technicians and other roles that will span their entire career. As such, the gas industry must continue to develop their workforce plans and skills investments as energy policy evolves. Our industry needs to work together to strengthen collaboration with educators and policy makers, to ensure that energy system learning accurately reflects the role of sustainable gases in supporting a clean power system, and inspires pupils to choose STEM subjects and consider net zero careers across the breadth of the energy system.

Hydrogen production and cluster development

Natural gas currently serves as the foundation of energy system resilience, particularly in periods of peak energy demand and low-renewable generation. In the transition to a decarbonised energy system, sustainable gases such as hydrogen and biomethane should assume that role – maintaining the gas network’s capacity to meet peak demand, balance competing demands for renewable electricity and deliver long-term energy storage capability.

The development of hydrogen clusters across the UK is a welcome part of the Hydrogen Strategy. Cluster development presents an opportunity to produce and transport hydrogen to power stations for flexible electricity generation and supply hydrogen to industrial customers – delivering the high temperature/speed response requirement for industrial processes.

IGEM’s industrial connections research, launched at the House of Commons at the Parliamentary Group for Energy Studies (PGES) inaugural Winter Warmer event in January 2024, highlights the scale of the industrial decarbonisation challenge. There are 67,000 industrial connections to the gas grid across the UK which share the same pipes as homes, commercial buildings and power generation. A small number of very large industrial demands are located on local and national gas transmission pipelines, but most of these industrial connections are located throughout the lower pressure distribution network.

The plan to decarbonise industry in these clusters also provides the opportunity to decarbonise flexible power generation as part of delivering a clean power system, with the development of infrastructure for adopting hydrogen and CCS.

Hydrogen transportation and storage

Each year the gas network provides around 100 TWh of cumulative daily linepack flexibility, with capacity to provide even more, which offers a method of storing energy that is very low cost compared to other options, such as batteries and pumped storage[1]. Building some new pipelines and repurposing parts of the gas network to carry hydrogen is a valuable way of maintaining energy storage capability, while serving a range of end uses.

Project Union, led by National Gas, is working to create a British hydrogen backbone by repurposing existing high pressure gas transmission network infrastructure – alongside the construction of selected new pipelines – capable of transporting 100% hydrogen and connecting hydrogen production and storage with industrial regions. This core hydrogen transmission network, alongside some strategic CO2 pipelines, will be key to ensuring a robust plan for transitioning a significant portion of gas fired electricity generation capacity to a net zero trajectory.

In terms of hydrogen storage, the track one clusters – HyNet and the East Coast Cluster – are focused on developing hydrogen storage facilities, including repurposing existing gas storage sites and exploring new underground storage options. These projects aim to connect up multiple TWh of hydrogen storage capacity by 2030 to support power generation, aviation, industrial and commercial demand, and further demonstrates the value of retaining gas storage capacity to support flexibility and security across the energy system.

By leveraging existing gas assets and exploring innovative storage solutions, UK gas network companies are working to future proof the ability of molecules to support the power system as it transitions to net zero. 

What role is IGEM and our members playing?

IGEM members, and the engineering community as a whole, are at the forefront of making a sustainable gas future a reality – IGEM is dedicated to supporting them to achieve this. The UK has an excellent gas safety record and it is critical that we maintain this record throughout the transition to a low carbon gas network.

IGEM will continue to provide technical leadership on gas safety and quality throughout the transition, through expertise across its membership, underpinned by industry technical standards. At the core of IGEM’s work lies a robust process for the creation, review and further development of Technical Standards and guidance documents upon which our gas industry safely runs its operations. This process is strictly governed and supported by IGEM members and technical stakeholders, including industry regulators, and involves industry wide consultations to achieve consensus and ensure best practice.

As well as developing the first Hydrogen Technical Standards, IGEM has facilitated a change in regulations on the quality of gas allowed to be injected into the transmission and distribution networks. This enables a higher proportion of greener gases, such as biomethane and hydrogen, which can contribute to lower carbon electricity supply.

In terms of supporting ongoing energy system planning, IGEM and its stakeholders will continue to work with NESO on the design of the national and regional strategic energy plans, and champion the pathway that leads to an optimised, flexible and secure whole energy system, at the lowest possible cost to consumers. 

Our role across various industry and governmental groups sees us working directly with gas network companies, manufacturers, consultants, contractors, installers, safety experts, academia, regulators, policy advisors and policy makers, to innovate and develop informed recommendations on the future of the gas grid. We, of course, encourage this to continue and accelerate – but perhaps with an added fresh, near-term purpose with the decarbonisation of the power system. Our members will be critical in supporting delivery of this and reaching the point of mission accomplished.