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Oleg Budargin: "We need to start working on the creation of "road maps" to integrate global energy systems"

21 January 2014

To move towards energy integration it is not necessary to await a favourable economic situation. Global energy companies can begin creating their own «road maps» parallel working with the investment community. In turn, the corresponding «road maps» in the part of the energy will be an additional incentive for states while taking their integration solutions.

This opinion was expressed by General Director of JSC Russian Grids Oleg Budargin, speaking at the World Energy Leader Dialogue (WELD), organized by the World Energy Council (WEC), which was held January 21 in Abu Dhabi at the site of the «World Future Energy Summit». The event was attended by representatives of 97 States — Members of the WEC.

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

«In today’s ever-changing economic environment, you need to look for new tools to improve the stability of the power system,» stressed O. Budargin.

According to the head of Russian Grids, countries — participants of integration projects in the electricity industry receive a number of advantages associated, in particular, with the improvement of reliability of power systems in emergency situations by gaining access to capacities of partners. When speaking about integration in the electricity industry, Mr. Budargin emphasized that relevant projects — this is not only the emergency reserve, but above all, a tool to improve energy efficiency and, as a consequence — a factor of environmental safety.

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

Responding to questions from panelists Mr. Budargin separately raised the issue of the development of smart grid, noting that «Smart Grid» is a technology that is impractical to implement either on a separate voltage class or in a particular region. The full effect of the project can be received if implemented throughout the continent.

No less promising are the projects aimed at optimizing the use of generating capacity and primary energy by reducing power reserves, considers Mr. Budargin. In addition, a major advantage of integration is the ability to implement joint innovation developments.

Many panelists were in agreement with the opinion of the head of Russian Grids, noting a number of factors speak in favour of the integration: economies have become more open, single markets and trade rules have been formed. In turn, the UAE 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 power consumption. According to participants, the energy integration gives more options both to energy generators and consumers, contributing to stability on the one hand, on the other — giving more flexibility.

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

In the end of his speech Mr. Budargin noted that «global integration of the grid complex will help optimize the cost and time for projects implementation, the creation of an intellectual electricity system of high quality, intelligent generation and grid architecture, based on the technical developments of energy systems in each country, thereby enhancing environmental safety, reliability, efficiency, availability of grids.»

During the meetings at the site of the Summit Oleg Budargin also discussed with the World Energy Council plans to create a new Eurasian WEC Committee, which will unite created national committees of such WEC member-countries, as Russia, Kazakhstan, the Ukraine and Iran, with the planned to be established national committees of Belarus, Moldova, Armenia, Georgia, Azerbaijan, Uzbekistan, Tajikistan, Kyrgyzstan, Turkmenistan, Afghanistan and Mongolia.

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

For reference
The World Energy Council (WEC) is the largest energy international NGO, established in 1923 on the initiative of business and energy circles of Great Britain and a number of industrialized countries in Europe and North America. In 1924 in London the first founding conference was held with the participation of representatives of many countries, including Russia, which became an official member and co-founder of the WEC. At present, the WEC includes 97 states. The 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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