Assessment of the Territorial Energy Security in the Context of Energy Systems Integration

Abstract

Our paper tackles the timely and highly-debated issue of assessment of the level of energy security for Russia’s territorial entities. Our analysis is carried out from the perspective of economic and management threats to reliable power supply for consumers caused by the process of integration of energy systems and the expansion of market regulation mechanisms. In particular, we focus on the creation and integration of energy systems using a case study of the remote territorial entity represented by Russia’s Far Eastern region that present a topic of special interest with respect to the subject and the scope of this research. We define and build the methods that might be used for determining the economically justified level of energy security under the market economy conditions based on ensuring a balance of interests between territorial government bodies and territorial generating companies in the process of forming a strategy for the development of a territorial energy system. Our results clearly demonstrate that current electricity tariffs and prices for the end consumers at the remote territorial entities, such as the Russian Far Eastern region, pose a threat to energy security since they are underestimated due to social and political concerns and often lead to unprofitable power generation. We argue that political consideration aside, energy systems creation and integration should be made viable and sustainable not only in Russia, but also in other countries. Our outcomes show that a more reasonable energy tariff policy might be appropriate when relevant stakeholders and policy-makers attempt to create conditions for the advanced development of remote industrial areas.

Pathways for sustainable development of urban heat supply systems

“…The Russian Federal Law "On Heat Supply" introduces the right to choose from five methods of regulating the cost of heat energy [5,17,18]: According to the method of economically justified costs, the required gross revenue of the heat supply company is calculated as the sum of production, repair, administrative and depreciation costs, as well as standard profit.…”

“…In a planned economy, heat supply to Russian cities was carried out through centralized systems based on district heating. Thus, it was possible to achieve energy savings and reduce the cost of heat energy and the tariff for consumers [2,3,5].…”

“…During the transition to a market economy and the liberalization of the country's energy sector, the production, transmission and distribution of energy turned out to be in different ownership, a lot of intermediaries appeared between generating facilities and end users. Today, the outcomes of these deep institutional changes significantly affect the final cost of heat for consumers, ensuring the reliability of heat supply and creates a threat for sustainable development of the industry [4,5].…”

Framework for Measuring Urban Energy Security : Citizen Perspective

“…However, traditionally energy security has been measured mostly at country or regional level (Almeida Prado et al, 2016;Fang, Shi, & Yu, 2018;Greene, 2010;Hu & Ge, 2014;Jääskeläinen, ISSN 2337-7062 © 2019 This is an open access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-sa/4.0/). -lihat halaman depan © 2019 *Email: yudha.prambudia@widyatama.ac.id.ac.id Diterima 11 Juni 2019, disetujui 27 Juli 2019 Höysniemi, Syri, & Tynkkynen, 2018;Kanchana & Unesaki, 2015;Kharlamova, Stavytskyy, & Chernyak, 2018;Kumar, 2016;Lisin, Strielkowski, Chernova, & Fomina, 2018;Löschel, Moslener, & Rübbelke, 2010;Martchamadol & Kumar, 2012;Narula & Reddy, 2016;Radovanović, Filipović, & Pavlović, 2017;Von Hippel, Suzuki, Williams, Savage, & Hayes, 2011;Watson & Scott, 2009;Yao & Chang, 2014). This is mainly due to the fact that decisions and policies related to energy supply, such as energy resources and production, are governed mostly at national level and it is some how related to political power (Yergin, 2006).…”

Leadership aspects of regional development, energy security, and energy consumption

“…Some remote regions (e.g. areas in Argentina, or Russian Far East) cannot rely on the energy supply from the central pipeline or electricity grid but have to secure their own energy instead (Lisin et al 2018). Here is where the renewable energy sources (RES) start playing a key role.…”