Geography

Oleg Budargin: “We need to start working on the creation of “road maps” of global energy systems integration”

Oleg Budargin: “We need to start working on the creation of “road maps” of global energy systems integration” 21.01.2014
In order to move towards energy integration, it is necessary not wait for a favorable economic situation. Global energy companies can begin to create their own “road maps” together with the investment community. Thus, these corresponding “road maps” of the energy will be an additional stimulus for the government when making integration solutions.

This opinion was expressed by General Director of Russian Grids, Oleg Budargin, speaking at a conference of world leaders in the energy sector (WELD), organized by the World Energy Council (WEC), which was held on January 21 in Abu Dhabi at the site of the “International Summit of Future Energy”. The event was attended by representatives of 97 States - Members of the WEC.

“Integration creates the conditions for the development of competition, which will stimulate energy companies to fight for the consumer and to seek new breakthrough technologies. This is extremely important, for example, for power, where today there is a lack of breakthrough developments in the field of power transmission to reduce losses,” said Mr. Budargin, approved as the Vice Chairman and Senior Advisor to the WEC in October last year.

“In today’s ever-changing economic environment, you need to look for new tools to improve the stability of power,” said Mr. Budargin.

According to the head of Russian Grids, the countries being participants of integration projects in electricity, produced a number of solutions associated, in particular, with the improvement of power systems reliability in emergency situations by gaining access to the partners’ capacities. When speaking about integration in electricity, Budargin emphasized that the relevant projects are not expressed by the emergency reserve only. This is a tool to improve energy efficiency and, as a consequence - the factor of environmental safety.

“From the standpoint of the most stable and reliable supply of energy, the integration processes are relevant on the continent today. In this respect, the most prepared to implement appropriate projects is the Eurasian continent, which already successfully operates a number of regional associations,” Mr. Budargin told Summit participants.

Responding to participants’ questions, Mr. Budargin separately raised the issue of the development of a smart grid, noting that the “Smart Grid” is a technology that is impractical to be implemented on a separate voltage class or in a particular region. The full effect of the project can be viable if it is implemented throughout the continent.

No less promising projects aimed at optimizing the use of generating capacity and primary energy is the reduction of power reserves, said Mr. Budargin. In addition, a major advantage is the ability to integrate the implementation of joint innovations.

Many participants at the discussion agreed with the opinion of the head of Russian Grids, noting that a number of factors point to the integration: the economies have become more open, a single market and trade rules have been formed. At the same time, the United Arab Emirates Minister of Energy, Mohammed Al Mazrui, in his speech, also stressed the importance of working to improve energy efficiency, and at the same time drew attention to the fact that all developed countries should change the very culture of consumption. According to the participants, the energy integration gives more options both to energy producers and consumers, contributing to stability, on the one hand, and contributing to flexibility, on the other hand.

The issues discussed at the session also touched upon the subject of risks that have an impact on energy security. Thus, a number of speakers noted the increasing connection of the energy and water supply, the unpredictability of weather conditions including factors that could seriously affect the reliability.

At the end of his speech, Mr. Budargin noted that “global integration of grid complex will help to optimize the cost and completion time for projects, the creation of a high quality intellectual electricity system, intelligent generation and network architecture, based on the technical developments of energy systems in each country, thereby enhancing environmental safety, reliability, efficiency, and availability of networks.”

Within meetings held during the Summit, Oleg Budargin also discussed with the World Energy Council’s leadership plans to build a new Eurasian WEC Committee, which will combine the national committees of such WEC member countries as Russia, Kazakhstan, Ukraine and Iran, and the planned establishment of national committees in Belarus, Moldova, Armenia, Georgia, Azerbaijan, Uzbekistan, Tajikistan, Kyrgyzstan, Turkmenistan, Afghanistan and Mongolia.

The main objective of the project is a joint decision of geopolitical, technological, economic, environmental and other issues in the energy industry.


Reference

World Energy Council (WEC) is the largest international energy NGO, established in 1923 on the initiative and energy business circles of Great Britain and a number of industrialized countries in Europe and North America. In 1924, in London, the first founding conference with the participation of representatives of many countries, including Russia, which became an official member and co-founder of the WEC, was held. At present, the WEC includes 97 states. WEC has a unique position in the world, being essentially the only global organization that brings together all areas of the fuel and energy sector and acting on behalf of the energy industry as an interconnected complex.

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