Physical infrastructure: Power grids modernisation and expansion
Heavy-duty trucks
Current status of implementation and existing gaps
Dedicated studies on optimised demand-based charging networks for long-haul electric trucking are being developed in multiple regions. Heavy-duty trucks can make use of megawatt-scale charging systems. Alignment with grid development plans are crucial to ensuring that the grid reinforcement needed to connect megawatt-scale charging systems does not become a bottleneck.
Examples and initiatives
In 2024, the Fraunhofer Institute for Systems and Innovation, in collaboration with Amazon, carried out a pan-European analysis that identified truck traffic routes and range-based charging needs. This exhaustive geo-analysis guides charging station operators to smartly deploy their systems and serves as a key reference for electricity system operators in considering the necessary reinforcements in the power grids.
Shipping
Current status of implementation and existing gaps
The timely deployment of the necessary technology and infrastructure at ports (i.e., grid infrastructure for electrification and sustainable fuel terminals), on ships, and in fuel manufacturing is also important in enabling the adoption of renewable-based fuels. These fuels all have different infrastructure needs, a fact that must be considered when evaluating decarbonisation strategies.
Examples and initiatives
The province of British Columbia, Canada, aims to streamline permitting the North Coast Transmission Line and other high-voltage electricity transmission projects to support the growing need for electricity in the province, including for ports.
Aviation
Current status of implementation and existing gaps
Electricity grids need to be reinforced and extended for e-fuel production, and in some instances new grids or interconnections with other grids and regions are required. Advanced planning and upfront investments in grids can accelerate the pace of transition while reducing energy costs for consumers.
Iron and steel
Current status of implementation and existing gaps
As the electricity demand from industrial applications increases, the electricity grids need to be reinforced and extended and, in some instances, new grids or interconnections with other grids and regions are required. Advanced planning and upfront investments in grids can accelerate the pace of transition while reducing energy costs for consumers.
Examples and initiatives
The EU has established a set of actions to accelerate the rollout of its electricity grids (European Commission, 2023b).
The Canadian province of Ontario has approved the building of transmission lines to support the production of green steel via electric arc furnaces at Algoma Steel’s site in Sault Ste. Marie (Government of Ontario, 2023).
Chemical and petrochemical
Current status of implementation and existing gaps
As the electricity demand from industrial applications increases, the electricity grids need to be reinforced and extended and, in some instances, new grids or interconnections with other grids and regions are required. Advanced planning and upfront investments in grids can accelerate the pace of transition while reducing energy costs for consumers.
Examples and initiatives
As part of its new grid action plan, the EU has established a set of actions to accelerate the rollout of its electricity grids (European Commission, 2023b).
Cement
Current status of implementation and existing gaps
As the electricity demand from industrial applications increases, the electricity grids need to be reinforced and extended and, in some instances, new grids or interconnections with other grids and regions are required. Advanced planning and upfront investments in grids can accelerate the pace of transition while reducing energy costs for consumers.
Examples and initiatives
As part of its new grid action plan, the EU has established a set of actions to accelerate the rollout of its electricity grids (European Commission, 2023b).
Enablers
Enablers (39)
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Policy and regulation
- 1 Sector-specific emission reduction targets
- 2 Carbon pricing mechanisms
- 3 Economic support for green commodities and fuels: Subsidies
- 4 Economic support for green commodities and fuels: Taxation
- 5 Economic support for green commodities and fuels: Carbon Contracts of difference
- 6 Demand stimulation policies: Green public procurement
- 7 Demand stimulation policies: Mandates and quotas
- 8 Demand stimulation policies: Emission reduction standards
- 9 Demand stimulation policies: Phase out of ICE Vehicles
- 10 Carbon limits in end products
- 11 Product definitions, standards, certification schemes and emission accounting frameworks
- 12 Fast-tracked permitting
- 13 Research and development support
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Technology infrastructure and system operation
- 14 Technology readiness: Reduced demand and improved energy efficiency
- 15 Technology readiness: Direct use of clean electricity
- 16 Technology readiness: Direct use of renewable heat and biomass
- 17 Technology readiness: Direct use of sustainably sourced biomass and biofuels
- 18 Technology readiness: Indirect use of clean electricity via synthetic fuels
- 19 Technology readiness: Implementation of CO2 capture, utilisation and removal measures
- 20 Physical infrastructure: Power grids modernisation and expansion
- 21 Physical infrastructure: Electric charging facilities for EVs
- 22 Physical infrastructure: Hydrogen networks
- 23 Physical infrastructure: CO2 capture and storage networks
- 24 Physical infrastructure: Ports and airports
- 25 Digital technologies and infrastructure
- 26 Quality infrastructure
- 27 Supply-side flexibility and demand-side management via smart electrification strategies
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Market conditions business and finance
- 28 Early market creation measures: Offtake agreements and long-term contracts
- 29 Early market creation measures: Industry coalitions
- 30 Early market creation measures: Emerging business models
- 31 Corporate climate commitments and transition plans
- 32 Ecolabels of green products
- 33 Sustainability-linked investments, climate bonds and sustainable finance taxonomies
- 34 Financing programmes and de-risking instruments
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Supply chain skills and community engagement