Think tank says increase in RE investments could create grid infrastructure tension

French firm Philippines a leader in renewable energy developments in Southeast Asia

International think tank BMI says that the continuous influx of investments in renewable energy (RE) technologies will create tensions in the development of grid infrastructures in the next decade.

In a report by the Inquirer, BMI said that with the current overloaded grid conditions, RE projects in the pipeline could only do so much to bandage the congested grid. 

BMI added that the obstruction to the global energy transition had always been the grid, especially with the speed of non-hydropower generation capacity surpassing the spending in grid infrastructure.

Furthermore, data from the International Energy Agency (IAE) revealed that since 2018, RE investments have been overtaking grid spending by around $200 billion. 

The Developers of Renewable Energy for AdvanceMent Inc. (DREAM) shared the same sentiment, explaining that poor development in grid transmission stood as a hurdle for the entry of renewables in the country.

With the emergence of new clean energy technologies, a more advanced grid is needed to support the innovation.

DREAM President Atty. Jose Layug Jr. explained that a capacity of only 2,699.76 megawatts (MW) had been injected into the grid from 2009 to 2019, with coal leading the power mix. 

Hence, BMI warned that the unbalanced investment in RE and grid could endanger the growth of RE, as the existing interconnection capacity will be unable to meet the demand from new projects.