How are heatwaves and drought reshaping clean energy investment?

Extreme heat is likely to make UK energy infrastructure more vulnerable while increasing localised electricity-network stress from cooling demand.

• The CS-N0W study, commissioned by the UK Department for Energy Security and Net Zero within a four-year, £5.5 million programme, assessed asset vulnerability, climate exposure and potential impacts across the UK energy system.
• Power-sector networks were the most vulnerable asset category; distribution underground cables, transmission and distribution transformers, service lines and connections, switchgear and circuit breakers received a vulnerability rating of 4.
• Under a 2.5°C global warming level, projected maximum temperatures reach up to 42°C in southern England and up to 36°C across most of the rest of the UK outside coastal areas.
• At the same warming level, low-to-medium impacts are projected across the UK, medium impacts across much of England and medium-high impacts in East Anglia.
• Historical analysis found that faults often became more frequent above 30°C, while future cooling demand could increase network loading even if generation capacity is sufficient to meet summer peaks.

Takeaway: Investors in clean-energy infrastructure should treat heat resilience and local network capacity as material risks, because direct asset failures and cooling-driven demand may coincide and increase the likelihood of electricity shortfalls and load shedding.