We too have had to temporarily deploy a diesel generator; this is really an eyesore for us. It shows how big a problem grid congestion is. Moreover, this was predictable. Between 2017 and 2024, you saw electrification accelerate and solar and wind generation grow explosively, while grid expansion and renewal lagged behind. Grid operators have primary responsibility to keep the grid reliable, but policy and licensing did not sufficiently support the necessary expansion and innovation. If so, you are now stuck with the rub.
We mainly try to solve the problem with ‘more copper in the ground’, but that is not enough. The grid is designed for peak moments that only occur a few times a year. That's like building ten lanes for a traffic jam that occurs occasionally. We need to be much smarter about managing supply and demand: steering on market prices, staggering over time and generating and storing locally.
Fortunately, there are alternatives to diesel that are technically and economically feasible. Battery storage combined with solar panels on their own roofs is a viable option for many companies. The cost price of batteries has fallen sharply in recent years. With a battery, you can store solar power generated during the day if you are not allowed to feed it back, or charge it cheaply at night and use that energy for your production process in the morning. This requires customisation: every company has its own consumption profile, so you have to calculate the optimal combination of generation, storage and power purchase. But more and more providers make this transparent and also offer lease constructions.
Diesel quickly costs 40 cents per kilowatt-hour and emits a lot of CO₂. Power from solar or the grid is more likely to be around 10 cents. By switching en masse to diesel now, we put the brakes on CO₂ reduction and harm our competitive position. It is precisely by generating locally, storing smartly and developing solar carports, for instance, where electric cars can also feed in, that companies can reduce their dependence on the congested grid. The technology is there - now policy and entrepreneurship need to match.
That companies are now turning to diesel generators is a step back in time.
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