INNOVATIVE ENERGY DEVELOPMENT IN RUSSIA’S ... Construction of mini cogeneration plants on local fuels The 4th Japan-Russia Energy and Environment Dialogue, Niigata, 15 November 2011

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INNOVATIVE ENERGY DEVELOPMENT IN RUSSIA’S

EAST USING SMALL-SCALE AND RENEWABLE

ENERGY SOURCES: PROSPECTS, PROBLEMS,

INTERNATIONAL COOPERATION

INNOVATIVE ENERGY DEVELOPMENT IN RUSSIA’S

EAST USING SMALL-SCALE AND RENEWABLE

ENERGY SOURCES: PROSPECTS, PROBLEMS,

INTERNATIONAL COOPERATION

B. Saneev, I. Ivanova, T. TuguzovaEnergy Systems Institute SB of RAS, Irkutsk, Russia

Speech at the 4th Japan-Russia Energy and Environment Dialogue, Niigata, November 15, 2011

Speech at the 4th Japan-Russia Energy and Environment Dialogue, Niigata, November 15, 2011

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Russia completed the work on preparation of a large number of policy documents determining the strategic development of the economy and energy in the East of the country until 2030 in the context of energy cooperation between Russia and NEA countries, such as "Energy Strategy of Russia until 2030", "Program for Creation of a Unified System of Gas Production, Transport and Supply in East Siberia and the Far East with Potential Gas Export to the Markets of China and other APR Countries” (Eastern Gas Program),"Strategy of Socioeconomic Development of the Far East and the Baikal region until 2025", ”Strategy of Socioeconomic Development of Siberia until 2020", ”Energy Development Strategy of East Siberia and the Far East until 2030","Program for Development of Oil Refining Capacities in East Siberia and the Far East”, etc.

These documents suggest a considerable increase in mutually beneficial supplies of Russian energy resources to the markets of China, Japan, Korea, and other NEA countries.

Russia completed the work on preparation of a large number of policy documents determining the strategic development of the economy and energy in the East of the country until 2030 in the context of energy cooperation between Russia and NEA countries, such as "Energy Strategy of Russia until 2030", "Program for Creation of a Unified System of Gas Production, Transport and Supply in East Siberia and the Far East with Potential Gas Export to the Markets of China and other APR Countries” (Eastern Gas Program),"Strategy of Socioeconomic Development of the Far East and the Baikal region until 2025", ”Strategy of Socioeconomic Development of Siberia until 2020", ”Energy Development Strategy of East Siberia and the Far East until 2030","Program for Development of Oil Refining Capacities in East Siberia and the Far East”, etc.

These documents suggest a considerable increase in mutually beneficial supplies of Russian energy resources to the markets of China, Japan, Korea, and other NEA countries.

The 4th Japan-Russia Energy and Environment Dialogue, Niigata, 15 November 2011

The Fourth Japan–Russia Energy and Environment Dialogue in Niigata S4-1 SANEEV & IVANOVA

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BASIC STUDIES ON EASTERN ENERGY POLICY OF RUSSIA, CONDUCTED BY ENERGY SYSTEMS INSTITUTE, SB OF RAS,

IN 2006-2009

BASIC STUDIES ON EASTERN ENERGY POLICY OF RUSSIA, CONDUCTED BY ENERGY SYSTEMS INSTITUTE, SB OF RAS,

IN 2006-2009

Ordered by the regional authorities Ordered by the regional authorities

• The concept of providing stable operation of energy facilities and energy security of Sakhalin region until 2020 – ordered by Administration of Sakhalin region• The strategy for energy development in Amur region until 2010 and for the time horizon until 2030 – ordered by Administration of Amur region •The strategy for electric power industry development in Chukot Autonomous Areauntil 2020 – ordered by Administration of Chukot AA and JSC “Chukotenergo”•The strategy for energy development in Irkutsk region until 2010 and for the time horizon until 2030 – ordered by Administration of Irkutsk region• The energy strategy of Sakha Republic (Yakutia) until 2020 and for the time horizon until 2030 – ordered by the Government of Sakha Republic (Yakutia)

In the framework of the Energy Strategy of Russia 2030In the framework of the Energy Strategy of Russia 2030

• The strategy for energy development in East Siberia and the Far East until 2030• The study on prospects for electric power industry development in Russia until 2030


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1. Role of renewable energy sources in electricity production in Russia

2. Energy supply to consumers in Russia’s East: current state and problems

3. Efficiency estimation of small-scale energy development options

4. Prospects and problems in implementation of projects for construction of renewable energy sources

1. Role of renewable energy sources in electricity production in Russia

2. Energy supply to consumers in Russia’s East: current state and problems

3. Efficiency estimation of small-scale energy development options

4. Prospects and problems in implementation of projects for construction of renewable energy sources

PLAN OF PRESENTATIONPLAN OF PRESENTATION


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1. ROLE OF RENEWABLE ENERGY SOURCES IN ELECTRICITY PRODUCTION IN RUSSIA

1. ROLE OF RENEWABLE ENERGY SOURCES IN ELECTRICITY PRODUCTION IN RUSSIA


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Wind power plants, 0.004%

Geothermal power plants, 0.3%

Small hydro power plants, 1.6%

Large hydro power plants

98.1%

Renewable energy sources,16.8% Thermal power

plants, 66.7%

Nuclear power plants, 16.5%


STRUCTURE OF ELECTRICITY PRODUCTION IN RUSSIA(CURRENT STATE)

STRUCTURE OF ELECTRICITY PRODUCTION IN RUSSIA(CURRENT STATE)


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7ESI SB RAS

- Geo power plants – 83.7 MW

83.7

- Small hydropower plants– 698 MW

23.8

101

70

247

9.5

5.3

241- Tidal power plant – 0.4 MW

0.4

- Wind power plants – 13.3 MW

3.3

2.5

1

6.5

CAPACITIES OF RENEWABLE ENERGY SOURCES BY FEDERAL OKRUG OF RF, MW (CURRENT STATE)

CAPACITIES OF RENEWABLE ENERGY SOURCES BY FEDERAL OKRUG OF RF, MW (CURRENT STATE)

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GeoPP – 83, 7 MW

MendeleyevskayaGeoPP 3.6 MW

Okeanskaya GeoPP 3.6 MW

Pauzhetskaya GeoPP 14.5 MW

Mutnovskaya GeoPP 50 MWVerkhne-Mutnovskaya GeoPP 12 MW

WPP – 3,3 MW

Anadyrskaya WPP 2.5 MW

WPP on Bering Island 0.5 MW

WPP in Tiksi town 0.25 MW

SHPP – 29,0 MW

Enashiminskaya SHPP 5 MW

SHPP Kyzyl-Khaya0,3 MW

MatrosskayaSHPP 1.7 MW

TolmachevskaySHPPs 20.4 MW

BystrinskayaSHPP 1.7 MW

LOCATION OF RENEWABLE ENERGY SOURCES IN THE EASTERN REGIONS (CURRENT STATE)

LOCATION OF RENEWABLE ENERGY SOURCES IN THE EASTERN REGIONS (CURRENT STATE)

the 4th Japan-Russia Energy and Environment Dialogue, Niigata, 15 November 2011


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2. ENERGY SUPPLY TO CONSUMERS IN RUSSIA’S EAST: CURRENT STATE AND

PROBLEMS

2. ENERGY SUPPLY TO CONSUMERS IN RUSSIA’S EAST: CURRENT STATE AND

PROBLEMS

the 4th Japan-Russia Energy and Environment Dialoge, Niigata, 15 November 2011

10ESI SB RAS

Northern border

Interconnected power systems

Isolated power systems

Prospectiverailway mains

ZONING OF RUSSIA’S TERRITORY IN TERMS OF POWER SUPPLY CENTRALIZATION

ZONING OF RUSSIA’S TERRITORY IN TERMS OF POWER SUPPLY CENTRALIZATION

THE ZONE WITH DECENTRALIZED ELECTRICITY SUPPLY IN THE EAST OF RUSSIA OCCUPIES MORE THAN 60% OT THE TERRITORY

THE ZONE WITH DECENTRALIZED ELECTRICITY SUPPLY IN THE EAST OF RUSSIA OCCUPIES MORE THAN 60% OT THE TERRITORY


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CHARACTERISTIC OF ENERGY SOURCES IN THE EASTERN REGIONSCHARACTERISTIC OF ENERGY SOURCES IN THE EASTERN REGIONS

The capacity of small-scale energy sources makes up 4.7% of the total capacity of power plants

The capacity of small-scale energy sources makes up 4.7% of the total capacity of power plants

Renewable energy sourcesNumber of power plants – 13Capacity – 0.12 thous. MWElectricity output– 0.5 bln. kWh

Renewable energy sourcesNumber of power plants – 13Capacity – 0.12 thous. MWElectricity output– 0.5 bln. kWh

Interconnected power systemsNumber of power plants – 56Capacity – 42.8 thous. MWElectricity output– 170.8 bln. kWh

Interconnected power systemsNumber of power plants – 56Capacity – 42.8 thous. MWElectricity output– 170.8 bln. kWh

Autonomous and backup energy sourcesNumber of power plants – 5300Capacity – 2.4 thous. MWElectricity output– 5.2 bln. kWh

Autonomous and backup energy sourcesNumber of power plants – 5300Capacity – 2.4 thous. MWElectricity output– 5.2 bln. kWh

Isolated power systemsNumber of power plants – 29Capacity – 6.4 thous. MWElectricity output– 20.6 bln. kWh

Isolated power systemsNumber of power plants – 29Capacity – 6.4 thous. MWElectricity output– 20.6 bln. kWh

6.7 mln. km2 (62%) is situated in the North, The population is 2 mln. people (14% of the

population in East Siberia and the Far East)

6.7 mln. km2 (62%) is situated in the North, The population is 2 mln. people (14% of the

population in East Siberia and the Far East)


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PRICES AND TARIFFS FOR CONSUMERS IN DECENTRALIZED ELECTRICITY SUPPLY ZONES

PRICES AND TARIFFS FOR CONSUMERS IN DECENTRALIZED ELECTRICITY SUPPLY ZONES

Price of diesel fuel– 30-36 thous. rub./tPrice of fossil fuel– 3-6 thous. rub./tce

Cost price of:electricity production– 13-22 rub./kW·hheat production– 4-5 thous. rub./Gcal

Tariff for population: electricity– 2.5-3.5 rub./kW·hheat – 1-2 thous. rub./Gcal

For information: - Average wholesale price of diesel fuel in Russia - 27 thous. rub./t- Average tariff for population in Russia:

electricity– 1.2 rub./kW·hheat– 430 rub./Gcal

Subventions for levelling tariffs (delivery of

commodities to the North)50 bil. rub



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3. EFFICIENCY ESTIMATION OF SMALL-SCALE ENERGY DEVELOPMENT OPTIONS

3. EFFICIENCY ESTIMATION OF SMALL-SCALE ENERGY DEVELOPMENT OPTIONS


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RATIONAL DIRECTIONS IN DEVELOPMENT OF SMALL-SCALE ENERGY

RATIONAL DIRECTIONS IN DEVELOPMENT OF SMALL-SCALE ENERGY

- connection to electric power system;

- reconstruction and upgrading of existing energy sources;

- construction of mini cogeneration plants on local fuels (coal and hydrocarbons from local deposits);

- involvement of renewable energy sources;

- construction of low-capacity nuclear power plants.



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3.1 Connection to centralized electricity supply3.1 Connection to centralized electricity supply

With rise in loads the economically efficient distances for connection to power systems increase

With rise in loads the economically efficient distances for connection to power systems increase

Connection to centralized electricity supply is efficient for consumers located at a 75-90 km distance from supply centers


In the eastern interconnected power

systems up to 30-90 km

In isolated power systems in the northeast

up to 25-75 km

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Allocation of mini cogeneration plants is efficient near coal deposits and natural gas fields or in the buffer area of gas pipeline routes

Electricity production cost at cogeneration decreases two-fold against diesel power plant

3.2 Construction of mini cogeneration plants on local fuels3.2 Construction of mini cogeneration plants on local fuels


0

5

10

15

20

25

30

22 24 26 29 31 34 36 38 41

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4

1,5

Payback period, years

Electricity tariff, cent/kWh

Electric capacity of coal-fired mini cogeneration plants, MW


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10

30

50

70

90

110

130

150

400

600

800

1000

1200

1400

5,3 6,2 7,1 8,0 8,9 9,8 10,7 11,5

Coal price,USD/t

Diesel fuel price, USD/t

Low-capacity NPP

DPP + boiler plant

Specific cfhinal investment in low-capacity NPP,thous. USD/kW

Allocation Consumer Electric capacity, MW

Yuryung-Khaya settlement

Tomtor rare-earth metal (niobium) deposit

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Tiksi settlement

Restoration of Northern sea route

12

Ust-Kuiga settlement

Kyuchus gold deposit

30

Peschanoe settlement

Copper ore deposit

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3.3 Construction of low-capacity nuclear power plants3.3 Construction of low-capacity nuclear power plants

Allocation of low-capacity nuclear power plants is efficient for energy supply to new industrial sites located in the hard-to-access areas

Allocation of low-capacity nuclear power plants is efficient for energy supply to new industrial sites located in the hard-to-access areas

Sakha Republic (Yakutia)

Cukot AO

Low-capacity nuclear power plants are competitive as compared to diesel power plants + boiler plants at capital investment of no more than 9 thousand USD/kW


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4. PROSPECTS AND PROBLEMS IN IMPLEMENTATION OF PROJECTS FOR

CONSTRUCTION OF RENEWABLE ENERGY SOURCES

4. PROSPECTS AND PROBLEMS IN IMPLEMENTATION OF PROJECTS FOR

CONSTRUCTION OF RENEWABLE ENERGY SOURCES



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2600

2400

2200

2200

2000

2000

Solar energy(annual total

solar radiation> 1200 kWh/m2)

- - - 2000 – durationof solar radiance, h/year

Wind energy(mid-annual speed> 5 m/s)

Geothermalenergy

Wood resources

Small-scalehydro energy

High potential resources

Federal Okrugs of RF1 – Central2 – Northwestern3 – Volga4 – Southern5 – Urals6 – Siberian7 – Far-Eastern

ZONES OF EFFICIENT IMPLEMENTATION OF RENEWABLE ENERGY POTENTIAL

ZONES OF EFFICIENT IMPLEMENTATION OF RENEWABLE ENERGY POTENTIAL


RES-based generating capacities to be commissioned in Russia during the period until 2030

Structure of capacities to be commissioned in Russia in 2030 by RES type, %

THE SCHEME FOR PLACEMENT OF ELECTRIC POWER INDUSTRY FACILITIES IN RUSSIA UNTIL 2020 WITH PROSPECTS TO 2030

THE SCHEME FOR PLACEMENT OF ELECTRIC POWER INDUSTRY FACILITIES IN RUSSIA UNTIL 2020 WITH PROSPECTS TO 2030

6,85

15,08

02468

10121416

2010 2015 2020 2025 2030

Thous. MW

Year

Base variant Maximum variant

27,4

41,7

4,1

26,6

0,2

Base variant

SHPP Bio-PP

GeoPP WPP

TPP

20,5

27,6

2,9

48,9

0,1

Maximum variant


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2121

Forecast of ESI for eastern regions

An aim of the Russian Energy Strategy until 2030:– increase in RES share in total electricity production from 0.5% to 4.5%- total capacity to be commissioned – 25 thousand MW

29 36 801553 20

56

127

8490

140

160

0

100

200

300

400

2009 2015 2020 2030

GeoPP WPP SHPP

Years

Capacity,MW

146

276

442

116

An indicator of the General Scheme for Placement of Electric Power Industry Facilities in Russia until 2020 with prospects to 2030: – total renewable generating capacities to be commissioned - 6-14 thousand MW– in the eastern regions - 2 - 3.5 thousand MW

Geo power plants in Kamchatka Krai and on the Kuril islands

Wind power plants in Primorie, Khabarovsk and Kamchatka Krais

Small hydropower plants in Buryat

Republic, Kamchatka Krai and Irkutsk

Oblast

Total capacity to be commissioned - 300-320 MW


2222

Placement of renewable energy sources is efficient in the hard-to-access areas in which the indices of renewable energy potential are the highest

EFFICIENCY OF USING RENEWABLE ENERGY SOURCES

EFFICIENCY OF USING RENEWABLE ENERGY SOURCES



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Total capacity to be commissioned by 2030

Connection to centralized electricity supply

Mini cogeneration plant - 70 MW

Conversion of DPP to gas

Low-capacity nuclear power plant – 108 MW

Small HPP – 126 MW

WPP – 123 MW

Geo TPP – 76 MW

TOTAL – 503 MW

RATIONAL PLACEMENT OF LOW-CAPACITY ENERGY SOURCES OF DIFFERENT TYPES

RATIONAL PLACEMENT OF LOW-CAPACITY ENERGY SOURCES OF DIFFERENT TYPES


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Institutional:- insufficient legislative basis in the sphere of RES;- ineffective system of measures intended to meet environmental

constraints;- unwillingness of authorities to participate in funding the investment

projects Financial:

- absence of federal financing mechanisms;- insufficient internal and foreign investment capital;- high cost of special equipment;- lack of long-term loans on acceptable terms.

Informational:- insufficient information about technologies and possibilities of their

application;- lack of reliable data on the indices of renewable energy resources;- negative experience of RES operation.


BARRIERS TO DEVELOPMENT OF RENEWABLE ENERGY SOURCES IN RUSSIA

BARRIERS TO DEVELOPMENT OF RENEWABLE ENERGY SOURCES IN RUSSIA


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Legislative framework

System of state stimulation

System of preferential taxes and crediting

Mutually beneficial deliveries of equipment

Joint investment in projects

Information exchange

The 4th Japan-Russia Energy and Environment Dialoge, Niigata, 15 November 2011

DIRECTIONS IN COOPERATION BETWEEN RUSSIA AND REPUBLIC OF KOREA IN THE FIELD OF

RENEWABLE ENERGY SOURCES

DIRECTIONS IN COOPERATION BETWEEN RUSSIA AND REPUBLIC OF KOREA IN THE FIELD OF

RENEWABLE ENERGY SOURCES

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Thank you for your attentionThank you for your attention


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Documents

INNOVATIVE ENERGY DEVELOPMENT IN RUSSIA’S ... Construction of mini cogeneration plants on local fuels The 4th Japan-Russia Energy and Environment Dialogue, Niigata, 15 November 2011