LSP QUARTERLY DIRECTORS REPORT Q3
LSP NewsWelcome to the third edition of the LSP Renewables Quarterly Directors Report, an opportunity to reflect on Q3 and share our findings and market insights.
In this quarter's instalment, we are excited to showcase the perspectives of our Director, Ashley Harrington, providing an in-depth overview of the Renewable Energy Landscape in the third quarter of 2024.
Overview of Q3 2024 – The Hot Topic is Grid!
Q3 2024 has been a transformative period for renewables. As the world’s push for a Net-Zero future strives forward, with the demand for clean energy increasing with every passing day, having a fully functioning, "fit-for-purpose" grid infrastructure is more critical than ever. Grid development is not just about keeping the lights on, but about ensuring we sustainably reduce our reliance on fossil fuels, paving the way for a greener planet. Paired with the growing adoption of efficient energy storage solutions, this “Grid Transformation” requires not only financial resources but also a skilled workforce to design, build, and maintain the modernised grid infrastructure.
According to the International Energy Agency (IEA), global energy investment in 2023 was expected to reach a record USD 2.8 trillion, with significant portions allocated to clean energy technologies. As the world drives forward with investment to hit the target of Net-Zero emissions, experts estimate that global investment in power grids will need to top USD 24trillion! That’s Trillion…with a T!
To bring this closer to home, demand for electricity in the UK is expected to double by 2050, with National Grid planning on a GBP 42billion investment through to 2025-26. Other nations are expected to keep pace with this commitment, with China aiming to invest USD 800 billion by 2030, and the US experts suggesting that number need be upwards of USD 3 trillion in the same timeline. Key areas of investment include; Grid Expansion and Upgrades, Digitalisation/Smart Grids, Grid Flexibility and Storage, and Regulatory/Policy support
So, with the ever-growing investments we are seeing, there’s sure to be some challenges to grid infrastructure, the scale of which we need to see. Here’s what LSP saw across Q3 that provide a deeper look into the state-of-play in the sector currently:
1. Supply & Demand:
As our grid evolves and we connect with a network of renewable energy sources closer to areas of consumption, grid operators will need to manage the more variable supply and demand.
2. Planning & Permitting:
The process from conceptualising to operation of new transmission and distribution networks can be lengthy, with most taking between 5 to 15 years. Not to mention securing Development Consent Orders (DCO’s) is very costly.
3. Skills Demand & Shortage:
The biggest, oldest challenge of them all…where will we find the talent to execute these ambitious grid transformations? The sheer scale of projects and the associated manpower required to deliver on our commitments will be a “pain-point”, not just for the UK, but the entire global community.
As a business, LSP have seen significant demand for expert talent across the holistic grid realm, from HVDC Interconnectors to a huge growth in Solar & Energy Storage, through to substantial grid upgrade programmes. Consider National Grid’s “Great Grid Upgrade” that LSP are supporting; a portfolio of 17 major infrastructure projects that’s projected to create well over 100,000 jobs. That is a program of work that will test every challenge conceivable. We have also seen increasing demand for digital and smart grid specialists in Europe, and significantly focused demand for Regulatory experts and Project Management talent in the US, which will help navigate the complex regulatory environment and support large-scale grid modernisation projects.
In Q3 2024 LSP have signalled a real intent in this space, investing in our Onshore team by appointing John Martin as Head of Onshore Grid, HVDC & Interconnectors. John brings over a decade of recruitment expertise in the renewable energy domain and throughout his career, has held key leadership positions, and supported major organisations through the energy transition.
As we move into Q4, we invite feedback and collaboration from all our partners. Together, we can achieve even greater milestones and contribute to a greener future.
Thank you for reading!
If you have any questions regarding this report, would like to discuss any recruitment needs or would like to discuss more specific industry insights within renewables, please feel free to contact Ashley as per below:
Phone - 0203 905 6265
Connect - LinkedIn