Distributed Energy in Russia: State-of-the-Art and Prospects

Abstract

This paper dwells upon the state-of-the-art of the electric power industry in Russia and how its patterns will affect the transition and the approaches to further development of distributed energy (DE). The article lists the reasons why consumers are dissatisfied with the centralized electricity delivery system that hinders the country’s socioeconomic development. A comprehensive solution to the problem becomes imperative in light of the worsening availability and affordability of electric power infrastructures coupled with the need to improve the continuity of electricity delivery. DE can develop in two ways: creating industrial MiniGrids or local smart energy systems (LSES). Industrial MiniGrids benefit their owners locally but make the centralized electricity delivery system less efficient. Balanced utility LSES’s based on mini-CHPs of up to 25 MW in electrical capacity have system-wide benefits. Importantly, they must be connected to the distribution grids of grid operators that deliver electricity to individuals, small and medium-sized businesses. This helps even out the load schedule in Russia’s UES; however, it does not address flexibility concerns nor the lack of maneuvering capacity. LSES’s help reduce the crosssubsidizing of industrial and commercial consumers whilst facilitating the integrated implementation of demand response technology. The paper further outlines why implementing utility LSES’s as DE facilities in Russia’s UES and as actors in the retail electricity market is a viable solution. Russia’s situation favors the energy transition; yet more consistent steps are required if the process is to be controllable, manageable, and predictable.