DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
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DECARBONISING THE ENERGY SYSTEM The role of Transmission System Operators Front page image from 50Hertz/Jan Pauls
Executive summary Reaching this ambitious goal requires all parts The central role that TSOs will play in this of society to actively work together. A systemic, increasingly complex, interconnected and va- integrated approach to decarbonisation, whe- riable energy system means that their contri- re demand and supply are matched at the least bution is crucial for achieving Europe’s climate cost, needs to be adopted. The production and goals. use of energy across all sectors of the EU eco- nomy account for more than 80% of the EU’s This is why a group of leading European TSOs GHG emissions1, with similar levels in strongly including Terna (IT), RTE (FR), Elia Group (BE and interconnected neighbouring countries. DEU), TenneT (NL & DEU), Amprion (DEU), Red Eléctrica (ES), Swissgrid (CH) and APG (AUT) Direct electrification coupled with have worked together to clarify and assess the contribution of TSOs to the decarbonisation of energy efficiency and the growing the energy system. share of renewable generation are the primary tools for decarboni- TSOs will provide the EU and Member States sing the energy sector. with their unique and neutral expertise in order to promote the establishment of a secure and Electricity will play a key role in the decarbonisation efficient interconnected power system that will of the economy thanks to the higher efficiency of support socioeconomic prosperity. electrical end uses and the integration of mature re- newable generation sources into the system (such They have welcomed Europe’s work and efforts as wind, solar, hydro and biomass). This has been towards decarbonisation and have embedded confirmed by all long-term energy scenarios2, whi- sustainability in their approach to the develop- ch predict that there will be a widespread adoption ment and operation of their electricity networks. of electrical assets (such as electric vehicles and TSO contributions to reducing GHG emissions heat pumps) and electrification of industrial proces- fall under two categories. ses. All future energy scenarios also confirm that the electricity network will become the backbone of Firstly, TSOs are contributing to a greener energy system. Replacing fossil fuels with the decarbonisation of Europe by electricity produced by low carbon energy sources reducing and limiting the carbon is already the fastest and most mature solution for decarbonising most sectors of the European eco- footprint of their own activities and nomy, including the light transport, residential and value chains respectively. service sectors. Electricity is expected to cover more than 50% of end use consumption in 2050, In line with international GHG emission stan- EXECUTIVE SUMMARY as outlined in EU long-term energy scenarios2 (in comparison with 23% today3). dards, TSOs monitor their direct and indirect GHG emissions and implement measures to reduce them. They do this through reducing However, in order for carbon neutrality to be rea- SF6 leaks, replacing SF6 gas with less harmful ched in some “hard-to-abate” sectors (in which te- alternatives when technologically feasible; they chnical and economic constraints prevent the use efficiently develop their infrastructure to limit European electricity transmission system operators (TSOs) contribute to the objective of mitigating global of electricity), direct electrification will need to be grid losses and partially offset the expected in- warming, which is outlined in the 2015 Paris Agreement. This was signed by the European Union (EU) complemented with the production and/or import of crease which occurs in proportion to electricity and its neighbouring countries, including Switzerland. TSOs are fully committed to enabling a secure and green molecules, such as hydrogen and green fuels. flows on the network; and they undertake ener- efficient transition towards a greener Europe - one in which renewable energy sources (RES) are widely These molecules will be mostly produced via Power- gy efficiency measures in their switching sta- available and in which energy is used as efficiently as possible. to-X technologies, thus bolstering the importance of tions and buildings, implement green procure- integrating low carbon electrical sources - especially ment procedures and adopt circular economy The EU and Switzerland are set to become climate-neutral by 2050, delivering on their commitment to renewable generation sources - into the system. approaches. achieving an inclusive, fair and green transition. This objective is at the heart of the European Green Deal, which includes the goal of cutting greenhouse gas emissions by at least 55% (when compared with 1990 levels) by 2030. The related “Fit for 55” package comprises a set of legislative adaptations covering 1. Emissions of the energy sector compared to total EU28 emissions in 2019 (Source: Eurostat – Data Explorer – June 2021). wide-ranging policy areas, including renewables, energy efficiency, energy taxation and greenhouse gas 2. Based on EU long term energy scenarios and in particular the scenario 1,5 Tech of the EU long term strategy (Source: JRC Technical Re- (GHG) emission schemes, among others. ports - Towards net-zero emissions in the EU energy system by 2050). 3. Based on 2019 Eurostat energy balance (version 2021). DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 1
Executive summary Secondly, TSOs are playing a le- nage an increasingly complex and digitalised energy system on the path towards carbon ading role in enabling the ener- neutrality; this system is one in which the sha- gy transition by taking on the re of intermittent RES is growing and consu- major challenge of integrating mers are gradually being empowered to take renewable generation and flexi- on active roles. TSOs are, therefore, currently playing the role of energy transition enablers, bility resources into the energy since they are facilitating the decarbonisation system and supporting the di- of the European electricity system and, con- rect and indirect electrification sequently, the decarbonisation of society as a whole, using complex and innovative tools of different sectors of the eco- to do so. nomy. The main tools used by TSOs in their role The core of TSO activities and responsibilities as enablers include the expansion and de- is to ensure the secure and high-quality de- velopment of the power transmission grids; livery of electricity across national and inter- the integration of flexible assets and servi- connected transmission grids which are the ces into the system (to facilitate demand backbone of the European electricity system side response, storage and sector coupling), they operate. TSOs are responsible for main- encouraging associated developments in taining the electrical frequency at 50Hz every market design and regulatory frameworks; second across the European interconnected and participation in debate and analytical synchronous system. They apply their inde- assessment related to the future design of pendent expertise to develop reliable and ef- electricity markets, capacity mechanisms ficient interconnected grids and related grid and congestion markets, so playing a pi- access mechanisms under the supervision of votal role in assessing challenges and pro- regulatory agencies. However, the role TSOs posing solutions for an efficient integra- play has been widening. They have to ma- tion of renewables into markets and grids. 2 DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators
Executive summary Digitalisation and investments in research and Given this crucial role, an assessment of the development are additional key approaches performance of a TSO with regards to su- used to ensure effective RES integration and stainability and decarbonisation should not the electrification of consumption. These to- stop at annual evaluations of its carbon fo- ols either directly contribute to GHG emission otprint. Instead, the impact that a TSO has reduction or indirectly contribute to enhan- on the decarbonisation of the system as a cing system reliability, ensuring a high level whole, which will ultimately also contribu- of security, the proper functioning of markets te to the reduction of its carbon footprint, and delivering value to end users as the sy- should be considered. The expansion and stem adapts to higher levels of renewables. development of TSO activities are therefore For example, interconnections can be used to be recognised as active contributions to to carry RES surplus from one country to furthering the electrification and decarboni- another which still relies on fossil fuels gene- sation of society. ration, thus directly contributing to a reduction in the overall emission factor of its generation As a concrete example, whilst the develop- mix. More broadly, the interconnection of ment of a new line connecting a TSO’s on- electricity systems means that local varia- shore grid to a wind farm will lead to an in- tions in electricity generation are averaged crease in its individual carbon footprint, there out, which is particularly useful for integrating will be a net decrease in carbon emissions increasing shares of renewable sources into across the system due to the integration of national electricity mixes. Interconnections carbon-free electricity over the lifetime of the also indirectly contribute to enhancing sy- farm. stem reliability on a broader geographical scale, mutualising flexibility resources too. To bolster their activities, TSOs need to be recognised as It seems clear, then, that the crucial role TSOs are playing in the energy transition can enablers of the energy transi- only be fully appreciated when their contribu- tion at European level. tion to the system as a whole is considered. Indeed, whilst the magnitude of an individual TSO activities, which lead to system-level TSO’s direct and indirect emissions currently emission reduction, need to be explicitly reaches 1 million tCO2eq per year on avera- mentioned in GHG emission inventories un- ge, the decarbonisation impact that all Eu- der common assessment and monitoring ropean TSOs could have on the energy sy- frameworks, in addition to GHG emission stem as a whole could reach up to 3 billion sources already associated with their carbon tCO2eq. per year4. footprint. 4. E U28 GHG emissions in 2019 for the energy sector according to Eurostat (3,3 billion tons of CO2eq emissions of the energy sector vs approximately 3,8 billion tons of CO2eq emissions across all sectors). DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 3
Table of contents 01 Introduction 5 02 The role played by electricity in the 03 How TSOs contribute to GHG decarbonisation emission reduction 9 of the energy system 7 Introduction 9 Reducing the carbon footprint of TSO activities 11 Contributing to system-level GHG emission reduction 14 Revealing the full decarbonisation potential of TSOs 21 Annex Glossary 22 22 04 Introduction to the European cost-benefit analysis 23 Direct electrification: focus on France 23 DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 4
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex In seeking to meet the objectives of the agree- This paper, which was written by 8 ment, in 2019 the EU completed an update of European TSOs5, explains and assesses its energy policy framework by publishing its the key role TSOs are playing in the ener- Clean Energy for all Europeans package. This gy transition and Europe’s transformation package sets binding targets for Member Sta- into a carbon-neutral society. It addresses tes to be reached by 2030 in relation to decar- the role of electricity carriers, the ways bonisation, the future RES share, energy effi- in which TSOs are contributing to the de- ciency and interconnection capacity. Member carbonisation of society and the need for States have submitted National Energy and Cli- adopting a system-wide approach when mate Plans (NECPs) to the European Commis- assessing the impact of their activities. sion, outlining the measures they plan to imple- Clarifying the role of TSOs in this way is ment in order to meet the 2030 climate targets. crucial for maximising their sustainability strategies and minimising the costs of de- At the end of 2019, the EU published the Green carbonisation for European society. Deal, which outlined its goal of making Europe the first carbon-neutral continent by 2050 and its growth strategy for transforming Europe into a modern, resource-efficient and competitive economy. At the end of 2020, the EU decided to revise the 2030 European GHG emission re- duction target, increasing it from 40% to 55% (compared with 1990 levels). Undergoing the energy transition, reaching car- bon neutrality and establishing an affordable, secure, and cost-effective energy system requi- res the adoption of a System of Systems view of all sectors of the economy and strong policy coordination between the EU and its Member States. Investments across each sector should be focused on a pragmatic, integrated and in- INTRODUCTION clusive approach, with the aim of minimising decarbonisation costs in the social interest. While all societal actors are working towards decarbonisation by reducing their carbon fo- otprint, some players are actually enabling Eu- rope’s transition to a greener and more sustai- The persistent increase in greenhouse gas emissions, their harmful effects on ecosystems and nable economy. In the energy sector, electricity the growing attention paid to climate and environmental issues highlight that the energy model transmission system operators (TSOs) play this that fuelled the growth of the global economy during the last century is no longer sustainable. A role: they are enabling the electrification of worldwide commitment is required to progressively reduce natural resource consumption, increase consumption and facilitating the integration of energy efficiency and decarbonise all energy sectors. Acting now is essential. RES into the system while ensuring the efficient operation of their grids and guaranteeing the The EU has been at the forefront of international efforts to fight climate change since 1990. As part quality and security of electricity supply. of this work, it played a leading role in the realisation of the 2015 Paris Agreement, which was the first universal, legally binding global climate change agreement. 190 governments agreed on the long-term goal of keeping the global average temperature increase to well below 2°C (preferably to 1.5˚C) in comparison with pre-industrial levels. 5. E lia Group acts as a holding company which owns both Elia (the Belgian TSO) and 50 Hertz (one of the 4 TSOs in Germany; TenneT represents both the TSO of the Netherlands and one of the 4 TSOs in Germany. DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 5
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex THE EU GREEN DEAL EU CONSUMPTION TRENDS The European Green Deal is the EU’s growth strategy to transform the EU economy into a Figure 2 ANNUAL VARIATION RATIO VS 1990 sustainable economic model. Published in December 2019, the overarching objective of the 3 strategy is for the EU to become the first climate-neutral continent by 2050, resulting in a cle- aner environment, more affordable energy, smarter transport, new jobs and an overall better 2.5 quality of life for European citizens. The plan involves the introduction of a coherent legislative framework to guide the continent’s transition towards a carbon-neutral economy. 2 Figure 1 EUROPEAN GREEN DEAL ROADMAP 1.5 European Green 1 Deal 0.5 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 19 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 December 2019 GDP Population GHG emissions Energy consumption • Launch of the EU Green Deal Thanks to the adoption of climate policies such as the Clean Energy for all Europeans packa- ge, over the last three decades Europe has been able to both reduce its total end use con- January 2020 sumption and replace harmful fossil fuels (such as coal and oil) with renewables. The combi- «Just transition mechanisms», nation of energy efficiency mechanisms and subsidies for the integration of renewables into for most vulnerable sectors and regions the system has led to a significant reduction in the EU’s carbon intensity and to an obser- March 2020 vable decoupling between energy consumption and macroeconomic trends. roposal for a «Climate law» to reach •P Over the last 15 years, the share of RES in the final energy consumption has increased carbon neutrality by 2050 from 9% to 19%, while the share of RES in the electricity generation mix has increased •P roposal for Circular Economy action plan May 2020 from 14% to 34%6. However, the use of renewable energy varies in different sectors. While Launch of the the commercial, residential and industrial sectors today use a significant amount of thermal EU Biodiversity strategy renewables, biofuels and electricity (which is partially decarbonised), the transport sector is July 2020 still dominated by fossil fuels7. Adoption of the EU strategies for energy Figure 3 ENERGY CONSUMPTION MIX IN MAIN SECTORS OF THE ECONOMY IN 2019 system integration and hydrogen 0% Taxonomy for sustainable activities comes September 2020 Commercial 29% 15% 48% 7% 147 into force Proposal to raise the 2030 GHG reduction target to 55% December 2020 Residential 2% 36% 19% 24% 18% 284 Proposal to review the TEN-E regulation 0% July 2021 Transport 1% 92% 2% 5% 331 Publication of the «Fit for 55» package Industry 5% 32% 20% 34% 9% 259 The EU’s next objective is the delivery of the “Fit for 55” legislative package in the summer of 0 50 100 150 200 250 300 350 2021. This aims to fundamentally overhaul the EU’s climate policy architecture and put the EU Energy consumption (Mtep) on track to deliver on its 2030 climate target to reduce GHG emissions by 55% (compared with Solid (fossil) Natural gas Other (fossil) Electricity RES Total 1990 levels). The package comprises a wide set of new or recast directives touching on several (Source: Eurostat) topics such as renewables, energy efficiency, energy taxation, carbon emission trading schemes, 6. Based on Eurostat RES Share methodology (Directive 2009/28/EC). gas market and infrastructure (including hydrogen production and use), etc. 7. Based on 2019 Eurostat energy balance (version 2021). DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 6
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex Figure 4 EVOLUTION OF FINAL ENERGY CONSUMPTION AND KEY INDICATORS 2019 2050 (Eurostat) (Elaboration on EU LTS Tech 1.5) 67% 51% 1.057 672 27% MTEP MTEP 23% 19% 10% 3% Electricity Green hydrogen Other RES/decarbonised Other fossil ~2800 TWh Electricity End Use Demand ~4000 TWh 34% 85% RES share in electricity 960 TWh 3400 TWh GHG emissions reduction 24% Net-zero (vs 1990) THE ROLE PLAYED (Sources: Eurostat and elaboration on the EU Long-Term Strategy Tech 1.5 9 ). BY ELECTRICITY A first common element included in all future electricity grid will function as the backbone of energy scenarios is that energy efficiency will the decarbonisation of other energy sectors. be the primary instrument for reaching carbon Electricity is a major building block of a clima- neutrality. By introducing the “energy efficiency te-neutral energy system because of the higher IN THE DECARBONISATION OF THE ENERGY SYSTEM first” principle, the European Commission invi- efficiency of electrical end uses and the maturi- ted Member States to include energy efficiency ty of renewable electricity technologies. in all of their planning, policy and investment Reaching the ambitious climate objectives laid out in the European Green Deal requires the active decisions. As a consequence and as confirmed To exploit the full decarbonisation potential of participation of actors from across all sectors of society. The energy sector should lead the way, by the EU’s long-term strategy, the aim is for electricity, the share it occupies in the energy since it accounts for approximately 82% of total European GHG emissions8. Europe’s final energy consumption to decrease sector must be increased. This process, typi- by (a minimum of) 35% by 2050 in comparison cally referred to as the direct electrification of In line with the provisions of the Green Deal, carbon neutrality should be reached through the re- with 2019 levels. energy consumption, also contributes to redu- alisation of cost-optimal coupling between supply and demand whilst minimising decarbonisation cing primary energy needs. According to the costs for society. A second common element of all future ener- EU’s long-term strategy, electrification of con- gy scenarios is that electricity will become the sumption is expected to increase from 23% in dominant energy carrier and that the European 2019 to more than 50% by 2050. This, coupled 8. Emissions of the energy sector compared to total EU28 emissions in 2019 (Source: Eurostat – Data Explorer – June 2021). 9. JRC Technical Reports – Towards net-zero emissions in the EU energy system by 2050. DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 7
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex with the increase in renewables in the energy rall efficiency of different types of light transport also play an important part in the decarboni- This process, also referred to as the indirect mix (they are predicted to make up more than or heating systems, which are all supplied by sation of the whole energy system. Despite the electrification of consumption, can support the 85% of the generation mix by 2050, based on electricity generated from renewables (see info efficiency of electrical technologies and their di- decarbonisation of sectors like heavy industry Eurostat's RES share calculation), will allow box below). rect coupling with renewable generation sour- (where molecules are also used as feedstock, over half of the energy consumption in 2050 to ces, direct electrification is in fact not sufficient for example in the refinement and production be completely decarbonised. These examples show that from an energy use for reaching carbon neutrality. This is because of ammonia), heavy duty transport, maritime perspective, direct electrification of consump- there are “hard-to-abate” sectors, for which transport and aviation, which all require high Electricity is an extremely valuable form of tion is the most effective way to decarbonise direct electrification is not technically or eco- energy density fuels. energy that can be converted into useful power the energy system and should always be cho- nomically possible. In addition to electrification (e.g. mechanical traction) with a very high le- sen as the first option when it is technically and and the use of biofuels, such sectors can be Besides energy efficiency measures, the de- vel of efficiency. By contrast, thermal energy economically feasible. decarbonised through Power-to-X (P2X) pro- carbonisation of the energy system will require reaches thermodynamic limits quite quickly, cesses, where electricity is used to produce ei- the direct and indirect use of the electricity car- meaning it holds lower levels of efficiency. This A third common element included in future ther heat or synthetic gases (such as hydrogen) rier, making transmission system operators key can be easily observed by comparing the ove- energy scenarios is that green molecules will and liquid fuels. actors in the energy transition. EXAMPLES OF THE INTRINSIC ENERGY EFFICIENCY OF ELECTRICAL ALTERNATIVES IN THE LIGHT MOBILITY AND HEATING SECTORS The use of an electric vehicle makes it possible to travel 3 times the distance travelled with a hydrogen Figure 6 COMPARISON OF EFFICIENCY: HEAT PUMP VS H2 BOILER fuel cell vehicle and up to 4 times the distance travelled by a vehicle supplied by methane (obtained from VS SYNTHETIC METHANE BOILER the methanation of hydrogen), starting from the same kWh of electricity produced by RES. The conversion of electricity into hydrogen (and eventually methane) and its subsequent use in fuel cells (or combustion engines) inevitably result in a reduction in overall efficiency. Figure 5 C OMPARISON OF EFFICIENCY: ELECTRIC VEHICLES VS H2 FUEL CELL VS SYNTHETIC METHANE (ICE) The same comparison can be applied to the residential heating sector. With the same primary energy input, the use of a conventional boiler supplied by hydrogen or synthetic methane results in a much lower energy output when compared with the energy generated by an electric heat pump. In particular, when assuming an energy input of 1 kWh of electricity produced by RES and using standard values for the Coefficient of Performance (COP) of the heat pump (e.g. COP = 3) and for the efficiency of the boiler (e.g. 90%), the use of a heat pump produces about six times the energy of a synthetic gas boiler (hydrogen or methane). DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 8
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex HOW TSOs CONTRIBUTE TO In this evolving context, the role played by -Q uality of supply: TSOs need to ensure con- GHG EMISSION REDUCTION electricity carriers is growing in importance. At the same time, TSOs will continue to be tinuity of service and high-quality standards (in terms of voltage levels, harmonics, etc.). responsible for the efficient development and - Resilience: the electricity system must be operation of their electricity transmission grids able to react to extreme and rare events and in accordance with the following key pillars: promptly return to normal operating conditions. -S ecurity of supply: electricity systems need - Sustainability: TSOs need to operate and INTRODUCTION to manage disturbances with minimum servi- develop the electricity system while minimi- sing the impact of their activities (direct and ce disruption, i.e. without violating the opera- As a result of European climate policies, the power sector is undergoing a major change as it shifts value chains) on the environment (including ting limits of the system. This includes provi- GHG emissions but also biodiversity, consu- from a unidirectional system with a few big power plants and passive consumers to a fragmented and bidirectional system comprising both large-scale and small-scale intermittent renewable ge- ding information on adequacy requirements mption of raw materials or resources, waste neration facilities and thousands or even millions of small, flexible electrical consumption assets. to ensure that generation, storage and tran- management, etc.), looking at the interactions smission assets always match demand. between the grid and the ecosystem. DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 9
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex Sustainability lies at the heart of all TSO activities: it provides a framework for the fulfil- ment of their roles whilst minimising the economic and environmental costs for society. As part of their commitment to sustainability and their work towards carbon neutrality, TSOs play a major role in the reduction of the energy sector’s GHG emissions. TSOs are supporting society’s transition to a low-carbon future by: 1. acting to reduce, avoid or limit GHG emissions linked the carbon footprint of their own activities (scopes 1, 2 and 3 of the GHG emission protocol); 2. nabling the decarbonisation of the wider economy by e facilitating the replacement of fossil fuels with RES and the electrification of consumption. Whilst both types of actions are necessary to reach carbon neutrality by 2050, the decarbo- nisation potential held in actions included in the second point is much more far-reaching than the first. Indeed, whilst the magnitude of a single TSO’s direct and indirect GHG emissions currently reaches 1 million tCO2eq per year on average, the decarbonisation impact that all European TSOs could have on the energy system as a whole could reach up to 3 billion tCO2eq. per year10. 10. Aligned with the overall GHG emissions of the EU28 energy sector in 2019 according to Eurostat. 10 DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex REDUCING THE CARBON FOOTPRINT OF TSO ACTIVITIES TSOs contribute to decarbonisation by reducing or limiting the carbon footprint of their own activities and encouraging other actors across the value chain to limit theirs. This involves tracking and classifying their In-house SF6 monitoring application own GHG emissions in line with the GHG emission protocol. The latter establishes a comprehensive global standardised framework for measuring and managing GHG emissions produced as a result of private and public sector operations and actions. This framework divides emissions into 3 categories, as outlined below. Monitoring SF6 consumption is the first way to estimate leaks and implement ef- Completed in 2021 fective reduction strategies. To this end, Terna has devised an in-house applica- tion that allows the monitoring of equipment that contains SF6 gases throughout This comprises direct emissions that occur from sources that are owned or control- its lifecycle (installation, maintenance and dismantling). This will allow Terna to Scope led by the company. For a TSO, this includes emissions produced as a result of the identify and prioritise measures to replace or minimise the use of SF6. 1 consumption of fossil fuels in activities related to construction, grid development and maintenance (i.e. transport and machinery repair), SF6 leaks in facilities, etc. RTE GIS plan This includes GHG emissions that are produced as a result of the generation of pur- Scope chased electricity/heat that are consumed by the company. These are defined as 2 the forms of energy that are purchased or otherwise brought into the organisational boundary of the company. For a TSO, scope 2 emissions are mainly related to los- RTE has reinforced its leakage treatment policy to reduce emissions from To be completed in 2035 ses during the exploitation of the grid, with minor emissions also occurring due to existing facilities with systematic leak detection, immediate treatment using increasingly effective sealing techniques, preventive renovation of the electricity consumption of buildings and TSO activities. the airtightness, treatment of circuit breakers (replacing the whole leaking pole) and maintenance professionalisation. RTE is reducing its installed This corresponds to indirect emissions produced as a result of upstream and down- Scope stream activities. Scope 3 emissions are an indirect consequence of the activities of SF6 mass by building new substations using AIS technology as a priority. 3 the company and are caused by sources not owned or controlled by the company. For example, for a TSO, indirect emissions are caused by the construction of parts of its infrastructure, products or services by other companies. Indirect emissions Innovative sealing technique for GIS compartment repairs from downstream activities occur as a result of waste treatment. REE has developed a new methodology to repair SF6 leaks in GIS compart- Completed in 2019 TSOs have identified and implemented a wide range of instruments to reduce or mitigate their ments, based on flexible sealing systems and clamps tailored to and installed scope 1, 2 and 3 emissions. This includes, but is not limited to adopting sobriety and efficiency on each leakage point. This process does not require the dismantling of GIS measures in their activities and managing the impacts of their value chains and those related to compartments or final tests and can be applied to compartments built by existing and future interactions between the grid and connected ecosystems. An overview of the different GIS suppliers (traditional methodologies require these and must be main instruments is provided in the diagrams below, alongside related flagship projects. carried out with the supplier's cooperation). The procedure therefore allows le- aks to be repaired much more quickly; in turn, this leads to the quantity of SF6 emitted between the detection of the leak and its repair to be greatly reduced. For more information, click on this icon to learn more about each project. SF6 IN CIRCUIT BREAKERS (SCOPE 1) Pilot installation of SF6-free GIS at Station Westerlee SF6 is an inert gas which has a high die- lectric strength and thermal stability and is widely used in circuit breakers. Due In line with TenneT’s climate strategy, its goal of becoming climate-neutral by To be completed in 2023 2025 and in order to develop sustainable technical solutions, TenneT resolved to its high global warming potential, SF6 a bottleneck in an existing high-voltage substation with an SF6-free GIS installa- GWP of used leaks are the main source of a TSO’s di- tion of 50 kV. The project was a pilot intended to test SF6-free alternatives; the technology
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex DIRECT EMISSIONS PRODUCED AS A RESULT OF TSO ACTIVITIES (SCOPE 1 & 2) ELECTRICITY GRID LOSSES (SCOPE 2) As is the case for many businesses, the day-to-day activities of TSOs result in Grid losses are currently the biggest source of TSO emissions. They are an ine- GHG emissions. This mainly includes direct emissions from fossil fuels used vitable consequence of electricity flowing through transmission lines and grid for transport and heating (Scope 1) and indirect emissions, produced as a assets, but their impact on GHG emissions is entirely dependent on the electri- result of buildings consuming electricity (Scope 2). city generation mix. For TSOs that purchase the electricity corresponding to their grid losses, the associated carbon footprint can be reduced through gre- Decarbonisation strategies involve energy sobriety and efficiency measu- en procurement approaches. For all other TSOs, the main way to reduce the res, direct electrification of consumption and the use of renewable and low GHG emissions produced by grid losses in the long term is by enabling the in- emission energy sources. tegration of low-carbon energy sources into the system, while limiting grid loss increases through efficient grid development and energy efficiency measures. Terna E-mob programme EMISSIONS OF GRID LOSSES In absolute terms (without considering the application of green procurement processes), Ongoing GHG emissions associated with grid losses are proportional to the overall amount of grid losses measured by the TSO and to the specific emission factor of the local energy mix. 616 t CO2/year in reduced emissions Assuming that European climate policy is progressively implemented over the next few ye- ars, emissions associated with grid losses will change in line with two contrasting trends. Decarbonising TSO activities includes reducing the emissions of company cars and vans. This is why Terna is currently running a Figure 7 EVOLUTION OF EMISSIONS ASSOCIATED WITH GRID LOSSES pilot project aimed at replacing an increasing number of fossil fuel cars with electric vehicles over the next two years. Remote outdoor lighting in substations Completed in 2020 236 t CO2eq/year in reduced emissions Since 2020, the installation and improvement of remote lighting 2019 Electrification & Evolution of the Target year control systems has enabled the outdoor lighting of 426 REE sub- grid developments generation mix (e.g. 2030) stations to be switched off during the night. Thanks to these new systems, lighting is switched on only when it is needed, thus redu- cing electricity consumption and associated emissions. On the one hand, electrification and grid developments will increase the GHG emis- sions caused by grid losses, since the amount of electricity flowing into the whole system and the number of assets required to operate it in a secure way will increase. On the other hand, the integration of RES and low-carbon generation sources into UPS with Fuel Cell technology the electricity generation mix will: i) reduce emissions by lowering its emission factor; and ii) lower overall emissions caused by the system due to the electrification of end demand (not accounted for in grid losses). To be completed in 2025 >160 t CO2eq/year in reduced emissions Uninterruptible Power Supply (UPS) secures the availability of critical infrastructure in the event of power failure. To ensure functionality, the aggregates must be operated several times a year. The aim of one cur- rent project is to replace diesel-powered UPS with fuel cell technology that obtains its energy from regenerative low-carbon hydrogen. The feasibility of the project will be investigated through the running of a pilot, which will end in 2025. Source: Thomas Eder / Shutterstock.com DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 12
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex VALUE CHAIN – GRID DEVELOPMENT (SCOPE 3) Minimising the environmental footprint of The Greener Choice Greener choice consortium, including: Sustainable criteria in tenders TSOs also involves changes being made along the electricity grid value chain. In- deed, aside from the GHG emissions re- Completed in 2020 To be completed in 2023-2026 (4 projects) sulting from grid losses, most GHG emis- sions associated with transmission lines and grid assets are generated during their manufacturing and on-site construction phases. The main reduction tools for such The Greener Choice open letter was produ- As part of TenneT’s recent tender, launched with ced as a result of a collaboration between 7 regard to four Dutch and German offshore platfor- emissions involve the introduction of gre- TSOs aiming to leverage their central position ms (Hollandse Kust Noord, West Alpha, West Beta en procurement approaches, according in the energy transition and deliver a common and BorWin6), TenneT included criteria encouraging to which suppliers are chosen based on message to their suppliers. In the open letter, suppliers to take steps to reduce their impact on the their carbon footprint, commitment to all suppliers - established and new - were encouraged to move towards the adoption of environment and climate by using instruments like eco-design principles and use of circular increasingly sustainable activities; TSOs made clear they will take actions in this vein into ‘raw material passports’, internal CO2 prices, envi- economy approaches. consideration when selecting partners with whom to work and awarding contracts. ronmental cost indicators, CO2 performance ladders and nature inclusive designs. VALUE CHAIN – CORPORATE ACTIVITIES (SCOPE 3) Reducing value chain emissions also Low emission commuting Spare parts via 3D print covers corporate activities, particu- larly in the areas of mobility and the Completed in 2018 To start in 2021 distribution of purchased goods. Key tools falling under the former category >500 t CO2eq/year in reduced emissions GWP of used technology = 0 include choosing low-carbon travelling options, promoting the use of public For staff travelling to its headquarters, Swissgrid To increase the lifetime of equipment and reduce transportation and, where possible, has introduced sustainable commuting practices by GHG emissions associated with the purchasing of granting them with easy access to public transport new pieces of equipment, repairing such equipment implementing smart working approa- and providing them with underground parking facili- (instead of replacing it) is a sound solution. Howe- ches. Key reduction tools falling under ties. The latter includes space for bicycles, charging ver, this is only possible if spare parts are available at the latter include the introduction of stations for electric bikes and additional facilities such short notice. For this reason, APG intends to explo- green procurement, circular economy as checkrooms, showers, rest rooms and a drying re the possibility of using of 3D printing. It will start approaches and employee awareness room for wet clothes. Swissgrid has also launched a by identifying and testing appropriate use cases in campaigns. special app that allows employees to carpool. cooperation with a 3D printing service provider. MAINTENANCE (SCOPE 1, 2 & 3) Maintenance projects contribute to the Drones for monitoring vegetation Detecting anomalies via sound patterns reduction of a TSO’s carbon footprint by extending the life of network assets, To be completed in 2021 Completed in 2020 thus reducing GHG emissions along their whole value chain. Over the last few ye- 300 t CO2eq/year in reduced emissions ars, maintenance practices have been boosted through digitalisation, as a shi- A study was conducted in 2021 to assess the impact Unusual sounds are very often an indicator of the im- ft towards predictive maintenance has of using drones coupled with helicopters for monitoring minent failure of grid assets and their components. vegetation under overhead lines (compared to using APG uses acoustic sensors to identify and locate the been taking place; this involves remotely helicopters alone). The results show that employing sources of such unusual noises. To date, APG has monitoring the condition of machines drones that use digital data analysis allows for a 33% implemented four “sound scanners” and has already and analysing the data obtained. The reduction in greenhouse gas emissions (approximately prevented potential damage caused by loosened bol- use of digital tools shall be carried out 300 t CO2e), due to a reduction in the use of kerosene. ted connections and failed components. Preventive efficiently and they shall be implemented This gain is mainly due to a sober, efficient and low-car- repair and maintenance increases the life cycle of ap- through low-carbon practices. bon use of digital technology. pliances and prevents serious damage from occurring. DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 13
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex CONTRIBUTING TO SYSTEM-LEVEL GHG EMISSION REDUCTION Given the central role that TSOs play in the power sector and their potential to reduce GHG emis- To tackle this increase in complexity and main- which is able to industrialise the production of sions at the level of the energy system, their actions are enabling the energy transition and allowing tain a reliable and affordable energy supply, new innovative technologies and meet the demand Europe to fulfil its Green Deal ambitions. Ensuring security and continuity of supply while enabling investments and innovative tools are needed. for them, and by new approaches for societal the energy transition are, therefore, the key activities of every TSO. These will need to encompass the complete acceptance of new infrastructures and a more value chain of TSOs, stretching across each flexible use of electricity. These activities are growing in importance since the landscape of the energy sector is changing at area of their core business (grid development, an extraordinary pace. The introduction of an increasing amount of RES into the system and more asset management, market design and system All these tools are necessary for ensuring an decentralised electricity production is creating many new challenges for TSOs. In the medium-term, operations) and address both the technologies effective transition to a carbon-free European the distribution of generation across the electricity grid will completely change as injected energy themselves, but also underlying factors, such economy, since they either directly contribu- will come both from small-scale decentralised solar, wind and biomass generation sources and as company structures and processes. te to RES integration and the electrification of from large-scale green generation facilities such as offshore and onshore wind farms and solar consumption or support their realisation. plants. As a consequence, the transmission infrastructure and the operation of the system and Digital technologies will be key for enabling TSOs markets need to be adapted in order to match this more variable, flexible and smarter system. to handle the increasingly complex system and The following diagrams provide an overview of Moreover, backbone corridors must be reinforced to transport green energy over long distances. become more efficient, whilst operating as part the main tools and flagship projects carried out of an interconnected European energy system. in these areas. The increasing fragmentation of the sector, characterised by decentralised energy sources and the increasing number of market players due to electrification, is making the system increasingly TSO investments will have to be accompanied For more information, click on this icon to complex. On the one hand, the system will shift from being organised around a small number of by a coherent European industrial strategy, learn more about each project. power plants and inelastic demand to one which encompasses a portfolio of small, decentralised generation sources and flexibility means (such as electric vehicles, batteries and heating systems). On the other hand, the high presence of variable renewable generation sources will result in daily REDUCED VS AVOIDED EMISSIONS cycles of oversupply and under-supply of energy compared to load needs. This will make the alre- ady complex management of evening residual load ramps even harder. Figure 8 EMISSION REDUCTION AND AVOIDANCE The efficient management of decentralised means will become crucial for guaranteeing the ade- quacy and flexibility of the network; TSOs will need to be more flexible to keep the system in ba- Emission reduction lance. The implemented measure reduces emissions, as can be seen when compared with a condition un- der which the measure has not been implemented. This is the approach used to assess, for exam- ple, the achievement of Science-Based targets. Historical Target year year (with measure implemented) Emission avoidance The implemented measure reduces emissions, as can be seen when compared with a forecast condition un- der which the measure has not yet been implemented. This is the approach used in national and European Historical Target year Target year development plans to as- year (without (with measure sess the benefits of a grid measure) implemented) development. DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 14
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex Grid development The development of the electricity transmission grid is one of the main ways to transform the energy system into a carbon-neutral one. Over the last few years, national network development plans developed by TSOs have become increasingly driven by sustainability. Additional factors such as market efficiency, ensuring the security of the electricity system, ensuring quality of service and establishing an increasingly resilient system (which is capable of dealing with critical events) are other important drivers. Grid development can have a direct impact on the reduction of system-level GHG emissions when it involves connecting RES to the grid or reducing RES curtailment. It can also support decarbonisation indirectly by improving the secure operation of the grid when high amounts of RES are present in the system. Creating an integrated European network is one of the key objectives of the Clean Energy for all Europeans Package and is fundamental for achieving long-term decarbonisation and security of supply targets. CROSS-BORDER INTERCONNECTIONS Interconnectors, which are used to increase the transmission capacity Spain-France submarine interconnection ALEGrO between two countries, aim to sup- port RES integration, improve security To be completed in 2026-27 Completed in 2020 of supply and boost market efficien- 1,2 M CO2eq/year in avoided emissions cy in the social interest. They directly contribute to reducing RES curtailment (by enabling 2x1,000 MW underwater and The ALEGrO high-vol- renewable energy surpluses generated in one coun- underground HVDC link (±400 tage line is an intercon- try to be transported to another). They also indirectly kV) through the Biscay Gulf, nector linking Belgium enable the secure management of an electrical sy- between Gatika (Spain) and to Germany with a tran- stem which contains a high volume of RES. Based Cubnezais (France), almost smission capacity of on the power system needs analysis carried out by 400 km long. It will strengthen 1,000 MW. It is the first ENTSO-E as part of its Ten Year Network Development the interconnection betwe- HVDC interconnector Plan (TYNPD) in 2020, the 93 GW of cross-border ca- en Spain and France by al- that is implemented via pacity needed by 2040 will enable the integration of lowing a greater integration the novel Evolved Flow 110 TWh of RES generation (which would otherwise of renewable energies (7,431 Based approach. The have been curtailed) - and avoid 53 Mton of CO2 emis- GWh/year by 2030), improving approach allows for an security of supply and increa- optimal utilisation of the sions per year. sing the efficiency of both sy- interconnector in the day-ahead market timeframe optimising the entire Central stems. The project has been West European (CWE) region. Furthermore, as a fully controllable DC device, it is part of the PCI list since 2013. able to influence congestions in the European meshed AC grid. (Source: ENTSO-E) DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 15
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex ONSHORE AND OFFSHORE RES CONNECTION & HYBRID PROJECTS Connecting onshore and offshore RES directly contributes to reductions in Kriegers Flak Combined Grid Solution North Sea Wind Power Hub NSWPH Consortium, including: system-level emissions by enabling the integration of renewable energy Completed in 2020 To be completed in early 2030 into the system. 0,2 Mt CO2eq/year in avoided emissions The benefits of such connections double in the case The Kriegers Flak Com- The modular Hub-and- of hybrid projects, since offshore hybrid assets are bined Grid Solution (KF Spoke concept is key to sea cables that serve as connections to offshore RES CGS) is the first hybrid large-scale offshore wind (typically, offshore wind energy) and interconnectors project (400 MW in each energy deployment in the at the same time. direction) in the Baltic Sea. North Sea, which involves Depending on system a low environmental impact Hybrid projects allow one or more offshore wind far- conditions, KF CGS is able and low costs for society, ms to be linked to more than one onshore grid. to transport offshore wind while maintaining security power to the grids in Ger- of supply. Central to the vi- many and Denmark and/ sion is the construction of or provide transmission modular hubs in the North capacity for cross-border Sea with interconnectors to electricity trading all in one bordering North Sea coun- combined technical facility. tries and sector coupling through power-to-hydrogen conversion. Eurobar Eurobar consortium, including: WindConnector To be completed in 2023 To be completed in 2029 Eurobar aims to support The multi-purpose intercon- Europe and its TSOs in the nector (MPI) will simultaneou- secure and efficient con- sly connect up to 4 GW of Bri- nection of offshore wind tish and Dutch offshore wind farms by striving for stan- between the British and Dutch dardisation of interfaces electricity systems, providing and technology "offshore an additional 2 GW of intercon- grid ready", reducing the nection capacity between the environmental impact as countries. Therefore, the MPI well as interconnecting of- will enable spare transmission fshore wind clusters. The- capacity to be used to trade se measures can be taken electricity between the coun- step-by-step and will be tries, thereby increasing the implemented when econo- potential utilisation of offshore mically sound and techni- infrastructure and thus mitiga- cally needed. ting the environmental impact on coastal communities. (Source: S&P Global Platts) DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 16
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex INTERNAL REINFORCEMENTS Internal reinforcements cover a wide range of projects such as new lines, Tyrrhenian Link Reinforcement of the Spanish switching stations and synchronous mainland & Balearic Islands link compensators which are required First link to be completed by 2026 To be completed in 2021-26 to ensure the security and quality of electricity supply while enabling the decarbonisation 0,3-0,7 Mt CO2eq/year in avoided emissions 0,9 Mt CO2eq/year in avoided emissions of national electricity systems via the integration of renewables. The project con- The reinforcement project sists of two sub- includes a DC submarine Internal reinforcement projects often include the ad- marine bipolar link (2x200 MW capacity), ditional advantage of reusing existing corridors or in- HVDC VSC links 140 MW of batteries as frastructures. (1000 MW both) fully integrated network connecting Sardi- components, 5 synchro- nia with Sicily and nous compensators and Sicily with the Ita- a new transformer. The lian mainland. The project will allow the sub- project allows a stitution of a large part of substantial integra- the diesel & gas power ge- tion of renewable neration in the Islands by energy into the Italian power system (+600 GWh/yr expected in 2030) as well as renewable (236 GWh/year) an important enhancement of the reliability of the power system and the possibility and efficient combined of decommissioning old power plants fed by oil/coal, currently operating, thus cycle thermal power, thus avoiding a substantial amount of pollutant emissions in atmosphere. reducing CO2 emissions. SuedOstLink Almaraz-Guillena corridor To be completed in 2025 Completed in 2014 0,6 Mt CO2eq/year in avoided emissions 0,6 Mt CO2eq/year in avoided emissions The SuedOstLink is a 2GW The infrastructure links the 525kV HVDC transmission central and southern areas line. It is a joint project of the Spanish peninsu- between TenneT and la by 327 km of electricity 50 Hertz. lines. It facilitates the eva- cuation of new renewable The SuedOstLink has been generation, continues the categorised by the Euro- interconnection with Por- pean Union as a project of tugal and represents a si- common interest (PCI), indi- gnificant improvement in cating it is a key project for the guarantee and quality achieving EU decarbonisa- of the electricity supply in tion goals. the regions of Extremadura The project is a crucial link to enable RES produced in the North of Germany to and Andalusia. be transported to heavy industry located in the South of Germany. DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 17
The role played by electricity in the How TSOs contribute to Introduction decarbonisation of the energy system GHG emission reduction Annex System operation and market design The growing share of fluctuating RES in the electricity mix increases the flexibility and security of the system’s supply needs in daily, weekly, seasonal and annual terms while simultaneously reducing system inertia, which has traditionally been provided by dispatchable generation power plants. Besides grid developments, managing the grid in a secure way requires the consistent integration of flexibility resources and changes to market mechanisms and regulations. Market parties require clear long-term market signals to invest in cleaner generation power plants and flexible assets. Fostering cooperation between TSOs and the operators of the distribution grid will also be crucial, since most decentralised renewables and flexibility resources will be hosted by the latter. TSOs will support and accelerate this transition both in their own countries and across them, by facilitating the development of more integrated energy markets. ACCELERATING THE INTEGRATION OF STORAGE AND DSR TSOs actively support the integration of flexible resources into the system and as- Equigy Consumer centricity sociated changes to markets and regula- tions. Electrical storage systems and de- Ongoing Ongoing mand side response (DSR) are necessary for coping with the short-term flexibility requirements of the electrical system and (in particular) structural RES overgeneration during the central hours of the day Equigy plays a key role in the ac- The purpose of the Internet of Ener- and the steeper evening residual load ramp. celeration of the energy transition gy ecosystem is to allow players to and the integration of the ener- explore, test and co-build new energy gy system. With the European services through a consumer-centric crowd balancing platform, Equigy approach. These services will allow creates a trusted data exchange consumers to be active and central to enable aggregators to partici- players on the energy markets of the pate with smaller flexibility devi- future and benefit from the technolo- ces, such as home batteries and gical investments they have made in electric vehicles, in electricity ba- solar panels, heat pumps, boilers or lancing markets, turning consumers into prosumers. Owned by leading Europe- (car) batteries. an transmission system operators, Equigy aims to set cross-industry standards throughout Europe, to support a future-proof, reliable and cost-effective power system that is independent of fossil fuel-based flexibility sources. ENHANCED GRID OPERATION DRIVEN BY DIGITALISATION The digital transformation enabled by the Internet of Things (IoT) is deeply Life Cycle Analysis of DLR service at RTE Dynamic Line Rating (DLR) improving TSO grid operation practices. Data-driven algorithms are progressi- vely being integrated into automated To be completed in 2021 To be completed in 2023 control systems to maximise the availability of grid 290-1500 t CO2eq/year in avoided emissions 1,000-2,000 t CO2eq/year in avoided emissions assets (e.g. in Dynamic Linear Rating solutions) and minimise RES curtailment (e.g. by optimally managing The objective of the study is to By expanding the transmission capa- highly congested areas characterised by a presence quantify the environmental im- city, DLR promotes the integration of of different renewables and storage resources). pacts of the DLR service on two renewable generation. There is a sy- existing overhead lines. The resul- nergy between DLR and wind energy; ts show GHG gains linked to sub- however DLR is also beneficial for any stitution of thermal power station other stochastic renewable energy pro- generation by RES generation for duction. In real-time operations, DLR system adequacy. For the 2 lines, can be used to avoid redispatches whi- annual GHG emissions avoidance ch will reduce costs and energy losses is estimated to be between 290 t but also any further investment in tran- CO2e and 1500 t CO2eq. smission network reinforcements. DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators 18
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