Within the framework of the existing legislation, development of distributed generation is gaining new impetus. Small-scale nuclear power, which occupies a special place in Russia's energy development strategy, opens up significant prospects. Technological and infrastructural development in this area is needed in order to overcome grid constraints preventing large-scale implementation of distributed generation. Strategic measures aimed at developing small-scale nuclear power and distributed generation create conditions for growth and ensure Russia's energy security. This was the conclusion reached at the session “Distributed Generation and Russia's Energy Security in the New Reality” at Russian Energy Week 2024 (REW). KEY CONCLUSIONS Small-scale nuclear power is a promising project for boosting Russia's energy sector “We are now looking at the investment programme, approving the primary neocore on the basis of the well-known self-propelled unit. A 2 megawatt fast-neutron reactor. And it remains to be implemented. In my opinion, it's already a unique installation. That is, if the shelf is 370 tonnes, then here the heaviest element, the container in the picture, will be 70 tonnes,” Ilya Vergizaev, President of Rusatom Overseas. Distributed generation should be developed within the framework of the current legislation “Approximately 20 gigawatts of capacity operate on the retail market. These 20 gigawatts are structured as follows: 5.5 gigawatts of generation facilities with an installed capacity from five to 25 megawatts; about seven gigawatts of the retail market is taken up by generation facilities with an installed capacity of more than 20 megawatts, operating on the retail market without permits, which runs counter to the existing legislation, and another six megawatts, respectively, likewise. Over 25 megawatts are operating with the requisite authorization documentation,” Valery Seleznev, First Deputy Chairman of the Committee on Energy of the State Duma of the Federal Assembly of the Russian Federation. Legislative changes require a comprehensive impact assessment “It might happen that the effect of the proposed changes for the wholesale market will be 17 billion roubles a year, while the negative effect will be 40 billion more, or even 57 billion. This is because the cost of switching from retail to wholesale, something they insist on, will necessitate modernization of the generation facilities themselves and amendment of the schemes for power delivery. When a facility is built that does not enter the retail market, there is a line stating that technical connection does not imply output of power to the general grid,” Valery Seleznev, First Deputy Chairman of the Committee on Energy of the State Duma of the Federal Assembly of the Russian Federation. PROBLEMS Capacity expansion is limited by the owner's capacity "From an atomic standpoint, we have an added task with greater capacity. We can't double in size. The second story is that these developments are all, frankly speaking, a legacy, a great legacy. We have started to reanimate these approaches. You are absolutely right that this is a very expensive story. And here we are, also hindered, of course, by not being evaluated from the point of view of either showcase, or beauty, or elegance of technological thought. Everything always comes down to money, to the tariff, to how much it costs for the end consumer. If there were more federal funding, then, I repeat, with things as they stand now, everything is being done using Rosatom's internal resources,” Ilya Vergizaev, President of Rusatom Overseas. Initiatives limit development of distributed energy and result in underpayments “Operating without the necessary authorization documents leads to non-payment of 7.5 billion roubles – surcharges of the electricity and capacity market that are redistributed to wholesale market consumers, as well as pensioners. Around 15 billion roubles a year remain unpaid for electricity transmission services, all this creating a stumbling block. Regulators don't like it,” Valery Seleznev, First Deputy Chairman of the Committee on Energy of the State Duma of the Federal Assembly of the Russian Federation. SOLUTIONS Increasing the share of nuclear power in the country's energy balance “In tandem with the Russian government's decision to increase the share of nuclear power from 20 to 25%,” Ilya Vergizaev, President of Rusatom Overseas. “When we look at the energy sector, less than 50% of our energy-rich territory, you are looking at a component of this part. But we need to consider another component, where nuclear power was one of the leading areas for us. It should be completely different, of a different market and so on. This is a very promising trend,” Vladimir Litvinenko, Rector of St. Petersburg Mining University. Expanding the power unit capacity threshold and setting up an inter-committee working association “We see how prices are changing on the wholesale market; we see that companies are becoming more and more motivated to switch to their own generation. 2024 has, however, seen an alternative proposal. One of the biggest consumer associations of industrial parks in Russia has proposed, on the contrary, that the capacity threshold for self-generation units be raised to 50 MW, with plants below this threshold not required to enter the electricity and capacity market,” Valery Seleznev, First Deputy Chairman of the Committee on Energy of the State Duma of the Federal Assembly of the Russian Federation. * This is a translation of material that was originally generated in Russian using artificial intelligence. For more information, visit the Roscongress Foundation’s Information and Analytical System at roscongress.org

A fair energy transition must take into account each country's national characteristics, circumstances and objectives. The impact of the transition from fossil fuels to renewable energy cannot be ignored. Energy evolution must be just, equitable and inclusive so that all sectors of society can benefit from the change. To ensure sustainable development, the BRICS countries should be actively involved in developing long-term strategies. Sustainable energy is not just about the future but also a necessity for the present. This was the conclusion reached at the session “Annual Meeting of the BRICS Energy Research Platform” held as part of Russian Energy Week 2024 (REW).

KEY CONCLUSIONS

The energy transition should be gradual and take into account national characteristics, conditions and objectives

“The transition to low- and no-carbon energy systems should be gradual, taking into account national characteristics, circumstances and objectives, while contributing to achievement of sustainable development goals. It is appropriate to make use of all available fuels and technological solutions that reduce greenhouse gas emissions,” Alexey Kulagin, General Director of the Russian Energy Agency (REA) of the Ministry of Energy of Russia.

The impact of the transition from fossil fuels to renewable sources must be taken into account

“We need to understand the challenges facing the region [Asia-Pacific Region. – Ed.]. Speaking about the energy transition, we understand there are long-term goals that will lead us to zero carbon. Taking into account what was set in the Paris agreements, zero emissions by the middle of the century are like long-term development goals as part of the energy transition. Yet, at the same time, we must pay serious attention to how to achieve this kind of energy transition through a fair, transparent transition. There are three sustainable development principles: ecology, economy and social aspects. And a fair energy transition probably focuses more on the social component. It is necessary to analyze the effects, shifting from traditional energy consumption to renewable energy sources; it is necessary to move away from fossil to renewable energy sources. But, at the same time, we also need to consider the consequences of this kind of transition, such as job losses, ways to create green jobs for both men and women because gender is another aspect of the social issues embedded in the energy transition,” Hongpeng Liu, Director of Energy Division, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

Energy evolution must be fair and equitable

“We would like to speak not about the transition but about transitions in the plural. And, moreover, energy evolution must be fair, equitable and inclusive. This means that the transition must be well planned, must be gradual. It means we cannot make an energy transition overnight. It takes time. We need to understand the advantages and disadvantages of this transition. What both the process and the results will look like. And all of this must be distributed evenly over time. <...> The energy transition should not create new inequalities, especially between developing and developed countries, or concurrently between urban and rural countries, ones with predominantly rural or urban populations,” Mohammed Amin Naderian, Head of Energy Economics and Forecasting Department, Gas Exporting Countries Forum.

PROBLEMS

There is no such thing as innocent energy

“Any kind of energy requires sufficient raw materials. And, having worked as an analyst at least in the oil industry, I can quite consciously say there is no other industry as transparent as the oil industry. For example, child labour is used in mining titanium, lithium and iridium, and nobody takes any notice of that. I would say that in the past tense because, yes, there was a transparent market, but that no longer exists owing to the very far-reaching sanctions regime,” Karin Kneissl, Head of Centre G.O.R.K.I. (Geopolitical Observatory for Russia’s Key Issues) SPbU and Minister of Foreign Affairs of the Republic of Austria (2017–2019).

Shortage of personnel for professions related to the new energy sector

“The BRICS countries are experiencing a shortage of personnel for professions related to so-called new energy, according to a study on workforce training in the BRICS countries conducted by energy platform experts in 2023,” Alexey Kulagin, General Director of the Russian Energy Agency (REA) of the Ministry of Energy of Russia.

BRICS countries should be more actively involved in drawing up long-term sustainable development strategies

“If we look at the proportion of renewable [Energy sources. – Ed.] in total energy resource consumption, it is still small. Over the last two decades, we have even seen a decrease in the share of renewable energy sources in this consumption. This is also a big challenge and, of course, the overall capacity increase statistics have risen rapidly. If we don't step up investment in renewable energy technologies, we might end up in a situation where we can't meet the target,” Hongpeng Liu, Director of Energy Division, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

SOLUTIONS

Creating alternative structures within BRICS

“Alternative structures need to be created for energy cooperation within BRICS. Not only in terms of currency and technology but also energy transition. And who has the metals? Russia is in a very privileged position because it has virtually the entire Mendeleev table, if I am not mistaken,” Karin Kneissl, Head of Centre G.O.R.K.I. (Geopolitical Observatory for Russia’s Key Issues) SPbU and Minister of Foreign Affairs of the Republic of Austria (2017–2019).

Developing and implementing new principles

“Implementation of a fair energy transition should support stable employment, workers’ livelihoods and social security, while also enhancing the resilience of national economies,” Alexey Kulagin, General Director of the Russian Energy Agency (REA) of the Ministry of Energy of Russia.

Green Jobs programme for implementing a fair energy transition

“In the Asia-Pacific region, Indonesia and Vietnam have already officially launched this [energy transition] initiative. Probably not as much progress has been made as expected but, nevertheless, there is some progress. Other countries are also ready to follow this path and develop their own fair energy transition projects at the national level," Hongpeng Liu, Director of Energy Division, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

Building a sustainable energy sector and allocating responsibilities

“We have implemented a number of different projects to revitalize our gas industry. Many of them have been successful. And now we are conducting a feasibility study to turn our aviation industry into a sustainable and environmentally friendly one. We are focusing on the transition to sustainable energy and we must realize that this process has to be equal for all segments and elements of society. At the same time, everyone bears some responsibility for it,” Mohammed Amin Naderian, Head of Energy Economics and Forecasting Department, Gas Exporting Countries Forum.

* This is a translation of material that was originally generated in Russian using artificial intelligence.

For more information, visit the Roscongress Foundation’s Information and Analytical System at roscongress.org