[Premium] EU Gas Distributors Offer Flexibility: Report
The EU institutions have been working on smart grids for the electricity sector since 2009, but only in 2015 did it acknowledge the potential for the gas grids also to provide flexibility services.
As new forms of gas make their way to prove their commercial value, the European associations for Distribution System Operators (EDSO) and the gas industry are demanding more value be placed on their flexibility services and other positive side effects of alternative gas production, such as biomethane. EDSO, Eurogas and other associations launched February 27 in Brussels a report: Flexibility for the energy transition: a toolbox for electricity and gas DSOs.
New sources of energy will increase the role of the 2.000 European DSOs, as they connect directly to the distribution grid, instead of connecting to the transmission system: 90% of renewable energy producers are connected to the DSO, including alternative gas producers. It will require higher responsibility and autonomy for DSOs, as they will have to manage local production alongside local demand.
Flexibility in the gas network can be achieved through different technologies and practices. Biomethane, synthetic gas, and hydrogen are being tested and deployed in Europe. Power-to-gas (or p2g) can transform surplus power supply into synthesised gas using electrolysis, that can then be injected into the natural gas network or stored. As the gas network is already well developed, there is a low need for new network infrastructure. According to the report, if just the wind power capacity installed in 2016 was transformed into hydrogen, it would represent 5% of the volumes of the gas transported in the European gas grid for the same year.
"We're having the same discussions on power-to-gas as we had on solar and wind 10 years ago," said Eurogas head Beate Raabe, except it will be cheaper to develop p2gas.
To develop the potential for such technologies, these associations wants regulation that encourages R&D to bring costs down, as well as incentives that reward the positive side-effects of flexible gas networks: storage services for surplus power, but also avoiding interrupting installed capacities (curtailment), load sharing between the power and gas systems, capacity services, and efficient use of waste, among others.
European Commission representative Florian Ermacora agreed on the growing potential of new gas technologies and practices but an in-depth revision of EU regulation on the matter will have to wait until the next European Commission term, which is not set to start until the end of next year.