This interview was originally published on the RD20 website.
UKERC has been operating for 25 years. It is a consortium over 20 different institutions throughout the UK. It is funded by UK Research and Innovation (UKRI) research councils. Priorities are set on a rolling program, and the purpose of UKERC is to provide whole systems interdisciplinary energy research spanning engineering, economics, and social science. Rob Gross has been Director of UKERC since 2020 and has assumed advisory roles across UK government departments and agencies, Parliament, and industry. Besides his work in the UK, he has contributed to the work of international agencies including the World Bank, UNDP and IEA. We spoke with him about the UK’s challenges in the transition to the Net Zero Target and UKERC’s role in international collaboration.
UKERC assumes a coordination role between UK technology hubs, for example there are two hydrogen hubs, a solar hub, and a hub for offshore renewables. But he highlights, that UKERC also undertakes primary research, which is interdisciplinary in nature. “It spans everything from engineering through techno-economic assessment to social science, but the focus of it is on the whole energy system.” While it is largely UK-oriented, it is within an international context, as shown in research on geopolitics and energy security. The aim of UKERC was always to understand the whole systems perspective, which is particularly important now at the stage of transition of leading countries to the integration of a larger share of renewables, where questions as system flexibility, electrification, energy storage become central in the further development.
The UK has a legally binding commitment to net zero in 2050, and the funding for UKERC is explicitly designed for that purpose. Today the UK is halfway to net zero, having reduced carbon emissions by 50%, which has been primarily driven through the rollout of clean electricity generating technologies and the phase-out of coal. The UK as a country where the Industrial Revolution started through the use of fossil fuels shares a common responsibility, and is therefore taking the post-fossil, climate change agenda extremely seriously. He explains that one of the areas of study within UKERC is to understand the interrelationship between new renewable energy technologies and the operation of the electricity grid with a large share of renewables. The share of renewables in Great Britain has increased from 1% – 2% at the beginning of the 21st century to around 40% today, and the clean share, including nuclear, is now up to about 65% of UK electricity. A new plan is under discussion to achieve clean power generation already in 2030. At the same time, the share of electric vehicles and the role of heat pumps in heating will grow. Such an ambitious goal and all corresponding developments involve big systemic challenges not only on the economic-technical side but also pose societal acceptance challenges that are associated with building new infrastructure.
Many countries in the developed world haven’t built energy infrastructure on a significant scale for two generations. The current high voltage grid in the United Kingdom was mainly built in the 1960s. “It is necessary to massively re-engineer that grid so that large amounts of offshore renewables can be connected, because we are blessed with huge opportunities in the North Sea.” The UK has also extensively increased interconnection to mainland Europe. We need to think about the idea of offshore hubs for renewables that interconnect Germany, Denmark or the Netherlands with the UK, and where the power can flow in all directions. He emphasized that these are only one of the challenges as the path to transition is continued, but there is obviously a very important role for innovation in all of this.
This year, the southern part of the United Kingdom experienced an unprecedented summer of heat and drought, so the vast majority of the population understands that action is needed. Additionally global events have affected fossil fuel prices, whereby the UK energy system is especially sensitive to the development of international gas prices. In the UK gas sets the price of electricity, which consequently drives electricity prices up. Action is being taken to try and reduce that link. This is an area where UKERC research is at the forefront of the analysis. He believes UKERC is world leading in their analysis of electricity markets and policies, and they have advocated for changes that could help to break the link between gas and electricity prices. It is important to note that whilst gas prices for domestic consumers are going up by something like 25% this year, electricity prices are only going up 4%. He notes that already they are seeing some delinking, but it needs that to go further. “I think there is a very strong link between the RD 20 agenda, the UKERC net zero agenda, and energy affordability.”
He reminds us that back to the pre-1980s, most electricity systems were operated as a vertically integrated monopoly. Then privatization and liberalization started and a market was created for the first time, but it happened during a period of relative stability with a relatively stable technology mix compared to today. The market was based on marginal cost pricing, which is a well-established concept. Now variable renewables enter this market model with zero marginal costs. On a levelized cost basis, wind and solar are amongst the cheapest forms of electricity today in most regions. In order to provide a stable investment environment for investors, the contract for difference scheme was introduced for renewables and new nuclear power stations. It was envisaged as providing a subsidy. But with increasing shares of renewables, it makes it more difficult for the wholesale market to function as it would, because of the dominating share of generators under a contract for difference. He noted that at the moment we have not yet arrived at a configuration of the market to function in the most efficient manner, taking into account all changes that are yet to come, which presently poses the real challenge for energy policy and regulatory economics. It is still being debated what the future of the market should look like. Also control rooms of energy system operators around the world need to catch up with the digital age. Lots of embedded batteries, small scale solar, demand flexibility needs to be integrated, which requires a much more sophisticated digital system. “We are moving in that direction, but we need to accelerate.”
“RD20 is a really cool opportunity to engage and interact with leading scientists from leading research institutes from all around the world.” He says that he feels privileged to represent the UK at RD20, even though he is not representing a big national laboratory but rather a number of several decentralized institutes. “While we focus in our research more on whole systems and markets and integrating higher shares of renewables and public acceptability and economics, it is fascinating to see how other countries have a different perspective and prioritization, whether it is the relative priority of hydrogen, photovoltaics, or synthetic fuels.” UKERC has partnerships across the Atlantic with the US, with former Commonwealth countries such as Australia and is still working with the EU Horizon program. UKERC actually represents the UK in the European Energy Research Alliance (EERA). It is really important for the international academic and research community to stand up and honestly communicate the challenges we are facing, and to look for opportunities to do things together.
Finally he notes that UKERC is excited to be hosting the RD20 Summer School at the Technology Innovation Centre in the University of Strathclyde in Scotland in 2027. It is one of the most innovative universities in Britain with a strong focus on technology. Scotland itself is the absolute center of the renewable energy revolution in Britain because of its wind resources, the construction of new pumped hydro stations and a CCS project, to give a few examples. “We have participated actively in the RD20 summer schools since its beginning. In our upcoming program we envisage interactive sessions, which should allow young people to play the role of energy system planners, energy system architects, to immerse into real world decisions and challenges.” The benefits can’t be overstated that early career researchers get from coming together and meeting their peers from all around the world. “So RD20 countries, innovators, we need to get on because the energy transition will only be driven by people like us.”