Mykola Rubakh
Gas TSO of Ukrainee and NEC Ukrenergo held a joint strategic session on planning the long-term development of the gas transportation (GTS) and power energy (UES) systems of Ukraine. The companies agreed on further bilateral cooperation with the aim of effective integration of both systems and integrated development of energy infrastructure in Ukraine. During the session, the companies presented 10-year development plans for their systems, discussed prospects for increasing the need for flexible eneration (generation adequacy report) and assessed the possibility of involving the GTS of Ukraine infrastructure to regulate frequency in the UES of Ukraine.
"The technological unity of gas transmission and electricity systems is obvious, but previously the operators did not have an institutional basis for forming a common vision of future development. The agreed vision for the development of electricity and gas networks is currently a pan-European practice aimed at effectively sharing the strengths of a single network. In Europe, gas (gas generation) is not only used to balance electrical networks, but gas transmission networks are also considered as the ability to store and transport excess energy from RES in the form of synthetic gases (hydrogen or methane). The cooperation of operators will significantly accelerate Ukraine's transition to a decarbonized economy, "commented Serhiy Makogon, General Director of Ukraine Gas TSO.
"It is great that our vision coincides with the strategy of the new independent GTS operator. We started with the synchronization of systems development planning processes, preparation of joint projects. I believe that this cooperation is very important, the future of Ukraine's energy sector depends on it. Moreover, it is a question of energy security of our state, ”said Volodymyr Kudrytskyi, Acting Chairman of the Board of NEC Ukrenergo.
All this is fully in line with EU trends. On July 8, 2020, the European Commission published its EU Strategy for the Integration of Energy Systems. The EU strategy for the integration of energy systems will provide the basis for the transition to green energy. The current model, in which energy consumption in transport, industry, gas and buildings occurs independently - each with separate value chains, rules, infrastructure, planning and operation - cannot ensure climate neutrality by 2050 in a cost-effective way; the variable costs of innovative solutions must be integrated into the way energy systems operate.
Energy system integration means that the system is planned and operates as a whole, combining different energy sources, infrastructure and consumption areas. This connected and flexible system will be more efficient and reduce costs for society. For example, this means that the electricity consumed by European cars can come from solar panels on the roof, while buildings are heated by heat from a nearby factory and the factory is filled with clean hydrogen produced from wind energy on shore. The strategy identifies 38 actions to create a more integrated energy system. These include reviewing existing legislation, financial support, research and implementation of new technologies and digital instruments, guidance to Member States on fiscal measures and the cessation of fossil fuel subsidies, market management reform and infrastructure planning, and improving consumer information.
The European Green Agreement puts the EU on the path to climate neutrality by 2050 through deep decarbonisation of all sectors of the economy and higher reductions in greenhouse gas emissions by 2030.
The energy system is crucial to achieving these goals. The recent decline in the cost of renewable energy technologies, the digitalisation of our economy, and new technologies in batteries, heat pumps, electric vehicles, or hydrogen offer the opportunity to accelerate the profound transformation and construction of our energy system over the next two decades. Europe's energy future must be based on an ever-increasing share of geographically distributed renewable energy sources, flexibly integrating different energy sources while remaining resource efficient and avoiding pollution and biodiversity loss.
Today's energy system is still built on several parallel, vertical energy value chains that rigidly link specific energy resources to specific end-use sectors. For example, petroleum products predominate in the transport sector and are raw materials for industry. Coal and natural gas are mainly used for electricity and heating. Electricity and gas networks are planned and operated independently of each other. Market rules are also largely sector-specific. This model of individual pathways cannot provide a climate-neutral economy. This is technically and economically inefficient and leads to significant losses in the form of waste heat and low energy efficiency.
Integration of energy systems - coordinated planning and operation of the energy system "as a whole" through many energy, infrastructure and consumption sectors - is the way to effective, affordable and deep decarbonisation of the European economy in accordance with the Paris Agreement and the UN Sustainable Development Agenda 2030.
The EU's Clean Energy Policy Package, adopted in 2018, provides a basis for better integration between infrastructure, energy and sectors; however, regulatory and practical barriers remain. Without tough policy action, the 2030 energy system will be more like the 2020 system than a reflection of what is needed to achieve climate neutrality by 2050. This strategy sets out a vision for accelerating the transition to a more integrated energy system that supports a climate-neutral economy at the lowest cost in different sectors - while enhancing energy security, protecting health and the environment, and promoting growth, innovation and industry leadership.
Obviously, systemic integration will not be the only process for all: despite the overall goal of EU climate neutrality by 2050, EU member states have different starting points. Thus, Member States will follow different paths, depending on their circumstances, means and policy choices, which are already reflected in the relevant National Energy and Climate Plans. The energy integration strategy offers a compass to steer these efforts in the same direction.
This strategy identifies six pillars outlining coordinated measures to overcome existing barriers to the integration of energy systems:
- A more circular energy system based on "energy efficiency"
- Accelerate the electrification of energy demand based on a renewable energy system
- Promotion of renewable and low-carbon fuels, including hydrogen, for sectors of the economy that are difficult to decarbonize
- Creating energy markets suitable for decarbonisation and distributed resources
- More integrated energy infrastructure
- Digitized energy system and supporting innovation system
