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  • UKRENERGO REVIEW 30 MARCH – 6 APRIL 2018

    In these festive days, “Ukrenergo review” sends the wishes of welfare and harmony to our respective readers. However, we still recommend that you find a few minutes to look through a digest of the most topical news in the energy sector. Today, we provide you with the following stories.

    1. Shell’s Full Decarbonization Scenario for Global Energy System.

    Shell Oil Company published a completely new scenario for the global energy development, aimed at reaching the goals of the Paris Agreement. According to the authors of the “Sky” scenario, the consumption of oil will reach its climax in 2025, while the consumption of natural gas – in the 2030s. It should be noted that Shell has been involved in the analysis of possible scenarios of the energy sector prospects for a long time.

    In 2013, the company’s forecast presented the scenarios called “Mountains” and “Oceans,” assuming the high level of the world economy decarbonization in the years ahead. Now it is assumed that emissions of greenhouse gases will fall to zero by 2070. According to Shell, the achievement of the goals of the Paris Agreement is possible from the industrial, technological and commercial point of view. As envisaged by the “Sky,” the peak of coal consumption has already passed. An extremely powerful increase in the production of photovoltaic solar power is a particularly interesting feature of this scenario. It will reach 6,500 GW of installed capacity by 2035 and will occupy an area equivalent to the territory of South Korea – 100 thousand square kilometers. Thus, the average annual pace of the industry will reach 360 GW. The Sun will become the largest source of energy by 2060. Electricity generation will increase five times by 2070 as compared with the current level. At the same time, transportation and heat supply will be significantly electrified. By 2030, a half of car sales will consist of electric cars. The EU countries will reach zero (net zero) emissions by 2060, while the rest of the planet will join them by 2070. Following that time, global emissions will be negative. Well, all that is left to do is to believe in the accuracy of forecasts.

    2. No More Fossil Fuels. The Swedish State Company Vattenfall, one of the Europe’s largest energy companies, published its 2017 Annual Report including the description of activities in the area of sustainable development. The document was issued with the title “Fossil free within one generation.” As may be concluded from this phrase, Vattenfall plans to eliminate the use of hydrocarbons in its activities. Instead, the company will focus on the development of alternative energy and environmentally sustainable energy solutions. It is worth noting that Sweden wants to become a climate-neutral country by 2045. So, it is logical that a state-owned energy company is about to eliminate the use of fossil fuels by the same time. As a first stage, it is planned to reduce CO2 emissions by 75% by 2030. Vattenfall is one of the leaders in the European offshore wind energy sector and has recently won a tender for the construction of an offshore wind farm near the Netherlands. By 2020, the installed capacity of renewable energy companies (mainly wind power) is to increase to 4,100 MW, while the current project portfolio consists of 7 GW of renewable energy sources in total. In 2016, Vattenfall sold its German brown coal assets, which accounted for the majority of the group’s emissions. The group will completely abandon the use of coal in heat production by 2030 and will establish new natural gas or biogas plants for this purpose. Starting from 2030, the company will gradually reduce its gas consumption in heat production, replacing it by power-to-heat (renewable energy) solutions. Undoubtedly, these are brave steps for a clean future from the Swedish company.

    3. European Clocks Are Now Back on Time. 

    Digital clocks in Europe are now back on time after the transmission system operators in Europe compensated for the deficit of electricity on the continent. It is worth reminding that in early March there was a deviation from the standard frequency of 50 Hz in Europe, caused by the loss of energy in Kosovo and Serbia due to a political conflict between the countries. This, in turn, led to the fact that European digital clocks were delayed by about six minutes. However, the European Network of Transmission System Operators for Electricity (ENTSO-E) has now announced that the European transmission system operators implemented a collective electricity compensation program to bring the situation back to normal. Moreover, ENTSO-E noted that they are keen to support all parties in order to find a solution in the energy dispute between Serbia and Kosovo. Serbian electricity company EMS AD, which had to balance its network, blames Kosovo for the lack of power. At the same time, the transmission system operator of Kosovo, KOSTT, complained about an imbalance in the system when it supplied electricity to the northern part of Kosovo. For information, it is necessary to emphasize that Serbia refuses to recognize Kosovo and tries to block its attempts to join the UN and various international organizations, including ENTSO-E. In turn, the mission of ENTSO-E is to ensure the reliable operation, optimal management and development of the European electricity transmission system in order to ensure energy security and meet the needs of the domestic energy market. 43 transmission system operators from 36 countries are the members of ENTSO-E.

    4. A New Power Line from Amprion. German transmission system operator Amprion is seeking permission from the country’s Bundesnetzagentur (BnetzA) energy regulator to install a high-voltage line for transmitting offshore wind power generated in the area of the North Sea. The 300-kilometer line, called A-Nord, will run from the port of Emden to Osterrat, setting the missing link in the process of electricity transmission from northern wind power station in Germany. The project will provide the populous industrial district of North Rhine-Westphalia with additional 2 GW of electricity, equivalent to more than one large nuclear reactor. The line will end near Düsseldorf, where it will be connected to another planned line, Ultranet. The cables will use DC power to accelerate transportation and will be different from more conventional European AC lines. German regulator BnetzA announced that they wanted to publish the plans regarding those projects in May. This period coincides with the initiation of public consultations regarding the construction. Besides, the company plans to build two similar lines of the “north-south” type, SuedOstLink and SuedLink, approximately in 2025. It is worth noting that Amprion is one of the four operators of the electricity transmission system in Germany with approximately 950 employees. The company owns about 11,000 km of networks extending from Lower Saxony to the North of the country and to the Alps in the South. This area accounts for about a third of Germany’s economy.

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