SIEWConnects@Oliver Wyman: DNV Unveils the Shape of ASEAN's Future Power Grids

The world faces a daunting reality—where climate extremities are rewriting records. In April, across South and Southeast Asia, meteorologists tracked temperatures rising as high as 45°C in Thailand and Myanmar. Just this month in July, a northwest township in China logged an unprecedented 52.2°C.

As we navigate "the era of global boiling", the focus on power grids that can foster sustainability, resilience, and innovation takes on greater urgency in ASEAN's net zero journey. Speaking at the SIEWConnects@Oliver Wyman event on 25 July 2023 in Singapore, DNV's Dr Matthew Rowe, Director, Power Grids, Asia-Pacific, shared five key considerations to futureproof our grids.

70 percent of renewables will come from solar and wind. (Source: DNV)

1. The imperative for grid resilience

   As the world experiences extreme weather events, grid resilience is essential to ensure uninterrupted energy supply, adaptability to intermittent renewable sources, and the ability to cope with changing demand patterns. In fact, as the world continues to reduce its carbon emissions, DNV expects that 70% of electricity generation by 2050 will come from renewables. Offshore and onshore wind, solar, and solar and storage will make up most of our electricity share.

2. The crucial need for cutting-edge grid solutions

   Utilities in Asia are transitioning from a reactive to a more preventative and predictive approach in managing their assets. To address the complexity of a more decentralised power system and to support decision-making in asset management and operations, the future power grid must embrace digitalisation and advanced technologies. Digital tools such as Asset Performance Management (APM), digital infrastructure, and data analytics will play a vital role in optimising grid operations.

   In 2050, the electricity system will be dramatically different than today. (Source: DNV)

3. Empowering the grid through seamless renewables integration

   As renewables take centre stage, seamless integration within the grid is critical to accommodate more intermittent sources towards cleaner and greener electricity generation. Dr Rowe shared that by 2050, DNV expects the electricity system will undergo a transformation that will be unrecognisable from its current form. This vision would include 55,000 utility-scale photovoltaic plants, 12,000 onshore wind farms, and 1.3 billion electric vehicles (EVs) on the road.

   Storage is essential for the inclusion of variable renewables in electricity. (Source: DNV)

4. Building flexibility into the grid's backbone

   With the rise of intermittent sources like wind and solar, the grid must swiftly respond to fluctuations in energy generation and changing consumer demands to ensure uninterrupted electricity supply. Here, energy storage systems have a pivotal role to play in balancing energy supply and demand during peak periods. This will provide the flexibility that the grid needs to manage variable generation and demand.

   Dr Rowe revealed that storage markets around the world are growing rapidly, both for standalone storage and storage co-located with renewables.   It is also anticipated that by 2050 at least 15 percent of grid connected electricity storage could be provided by electric vehicles via vehicle to grid technology. As renewable penetration increases there will also be an increased need for longer duration storage assets as well.,

   The rising demand for electricity and integration of renewables demand substantial funds to bolster grid infrastructure and resilience. (Source: DNV)

5. Need for greater investment in the power grid

   The future grid will require significant funding for expansion, upgrading ageing assets, and implementing advanced digital infrastructure to meet the challenges of a changing energy landscape. According to DNV’s analysis, this is changing at speed. In Southeast Asia, the share of electricity in the generation mix will grow four times to what it is today due to population growth and increased electrification. Across Southeast Asia, DNV anticipates 4 times the number of power lines will be needed out to 2050 to reach net zero goals.

   To make all this happen, DNV said global investments in power grids need to grow by 50% in the next 10 years to support the influx of wind and solar energy, electrification of the industry, transport, and home appliances. DNV foresees grid investment peaking at around US$500 billion by 2050, with at least 15% going towards digital infrastructure, data storage, cybersecurity, and sensor arrays. These will enable more enhanced algorithms to run and control grid networks.

   Looking ahead to SIEW 2023

   Want to hear directly from the energy experts, decision-makers and thought leaders on their insights and perspectives? Join us at the Singapore International Energy Week (SIEW) 2023, taking place on 23-27 October. Register here.