Russian Energy Sector Research Articles

Development of a simulator for hydraulic power plant personnel

As annals show, the first hydroelectric power plants were built in Russia in 1802 – 1806. During the Soviet period of energy development, emphasis was placed on the special role of the country’s unified national economic electrification plan — GOELRO, which was approved on December 22, 1920. The chapter of the plan dedicated to hydropower was entitled "Electrification and water energy". In today’s Russia about 1/3 of power is produced at hydroelectric power plants. Accordingly, there arise issues of advanced training of personnel of hydroelectric power plants, which can be provided by the introduction of simulators for targeted training of personnel to work, both in normal modes and in pre-emergency and emergency situations, as close as possible to real ones. Unfortunately, the developers of simulators in the Russian energy sector have so far focused on creating simulators for thermal power plants, leaving hydroelectric power plants neglected. It can therefore be assumed that this article, which examines a simulator with dynamic computer mimic diagrams of hydraulic units and electrical circuits of one of the Russian hydroelectric power plants, will arouse some interest among readers of the journal and potential customers. The article describes a prototype facility, the composition of the simulator, which includes a model of the facility and operating modes, a model of the control system, a model of the protection system, a model of locks, a model of emergency and warning alarms, describes in detail the training and methodological support of the simulator complex, including models of training scenarios, an input model, a monitoring program, protocols and instructions. The hydroelectric power plant simulator presented in the article is versatile and can be applied both as a means of training and examination of operational personnel, and as a means for conducting professional skills competitions.

Actual issues of Russian energy sector development

The article is devoted to the consideration of the most pressing issues related to the development of the modern energy sector of Russia. Among them there are the technical obsolescence of energy production facilities, a huge amount of unused energy equipment, serious disruption of the innovation cycle in the energy industry, and inefficient management. The authors pay special attention to the difficulties associated with the ever-accelerating process of digitalization of economy in general and the energy industry in particular. The article also predicts the most probable possibilities for the emergence of environmental problems initiated by the development of renewable energy. The priority tasks for the development of the energy sector are determined. The list of the mentions tasks includes domestic power equipment competitiveness increasing; ensuring full utilization of energy capacities; restoration of the innovation process; improving the quality of strategic decisions; solving the problem of negative impacts of digitalisation.

Specific features of the energy sector in Russia’s eastern regions and their influence on shaping the Eastern direction in the new geopolitical landscape

The paper presents an analysis of regional features of energy systems in the eastern regions of Russia. The analysis aims to identify their effect on the development of the territorial and production structure of the energy sector, energy consumption, the transportation infrastructure, the export of energy resources to the countries of the Asia-Pacific region, and the efficiency of energy supply to consumers in the off-grid and hard-to-reach territories. Several categories of features are distinguished for the regional energy systems in the eastern regions of Russia. These are socio-economic, infrastructural, sectoral, environmental, and climatic. All these features are interrelated and require consideration when building the energy development scenarios, in particular those with a focus on the transition to low-carbon technologies.

High-growth firms' sustainability and efficiency in the Russian energy sector during pandemic

High-growth firms (gazelles) are important drivers of economic growth, being one of the key employment creators. COVID-19 pandemic hit the global and national economy. Dozens of industries suffer from epidemic restrictions. Gazelles did not stand aside and also suffered losses. Current research reveals the difference in performance of normal and high-growth firms in Russian energetic industry based on the financial reports data. The sample of energetic firms includes 3,066 normal and 162 high-growth firms. The performance is evaluated through the system of 6 indicators. The authors test 6 hypotheses (using one-way ANOVA) of better gazelles’ ability to grow, efficiency, solvency, and employability than normal firms in 2019-2021. The pandemic hit firm’s revenue growth in 2020, but gazelles had better ability to grow in 2019-2020. However, normal firms increased revenue greater than HGFs in 2021. Gazelles have higher profitability, solvency and employment creation abilities in comparison with normal firms. Firm efficiency doesn’t significantly differ between normal firms and HGFs.

ЭНЕРГОКОМПЛЕКС РФ В УСЛОВИЯХ ИНДУСТРИИ 4.0

The article analyzes the transformations in the Russian energy sector under the influence of industry 4.0. The author analyzed foreign and domestic sources, scientific papers, industry reports to identify the main features of the reorganization of energy in the transition period and transformation to reach the level of a new industrial structure. The analysis of domestic advanced technologies and innovative commercial and non-commercial projects in the energy industry is given. The purpose of the article is to identify the main features of the advanced energy complex in the conditions of industry 4.0, to identify the innovative potential of the domestic energy complex and the leading players who at the current stage form the competitiveness and security of the future energy complex of the Russian Federation.

ПОЛИТИЧЕСКИЕ УСЛОВИЯ ДЕКАРБОНИЗАЦИИ В РАМКАХ ЭНЕРГЕТИЧЕСКОГО ПЕРЕХОДА: МЕЖДУНАРОДНЫЕ РИСКИ И ВОЗМОЖНОСТИ ДЛЯ РОССИИ

The climate agenda will have a significant impact on the development of the Russian economy and the dynamics of foreign policy processes in the medium term. Timeliness and compliance with global challenges will lead to an increase or decrease in economic growth rates, as well as key directions of economic development for the coming decades. The purpose of the study is to determine the prospects of the Russian energy sector, taking into account the opportunities and risks of decarbonization in the context of the global energy transition. The methodology is presented by the author's systematization of relevant empirical data, as well as an analysis of a number of problematic complexes of the world fuel and energy complex in connection with the foreign policy aspect. In the course of the study, an assessment of a number of points of view was made that characterize the development of the Russian fuel and energy complex in different ways, taking into account the need for transformation caused by the global energy transition. As a result of the study, the role of Russia in the global climate agenda is shown. The risks and opportunities of the Russian economy in the context of changes in the global energy infrastructure are revealed. The priority scenarios for the transformation and diversification of the Russian economy in connection with the decarbonization of the world energy sector during the global energy transition are substantiated. The activities necessary for the successful implementation of decarbonization at the national level and their expected consequences are considered.

ЭКОСИСТЕМА ЭЗЕРНЕТА КАК ИНСТРУМЕНТАЛЬНЫЙ БАЗИС ЭНЕРГЕТИЧЕСКОЙ ЭКОНОМИКИ БОЛЬШИХ ДАННЫХ

The future development of the Russian energy sector will be based on the energy economy of big high-frequency data. Russia has begun preparing a new national project to build a big data economy during the year. High-frequency big geodata is a new stage in the development of the digital energy economy. The digital modernization of the Russian energy industry is a key driver of the resource-innovative development of the Russian Big Data economy.

Strategies for the development of the Russian energy industry in the conditions of climate challenges and geopolitical instability

The complication of the geopolitical situation, the growth of crisis processes, including in the energy and food sectors, the return of a number of “old” problems as significant, including increased inflation, rising cost of living, trade wars, large-scale social protests, etc., to a certain extent distracted the attention of states from solving the problems of the climate agenda. Against this background, it was not possible to overcome the trend towards an increase in greenhouse gas (GHG) emissions, with a special role in this energy. As a result, the achievement of the milestones agreed in Paris in 2015 to keep the temperature of the atmospheric air on the planet within the limits of an increase of 2 °C, with the most preferable option of 1.5 °C, was jeopardized. The complexity of the current climate situation and doubts about its easing in the application of traditional approaches stimulate a rethinking of the landmarks and instruments of climate policy and the energy transition associated with it at the global, subregional and national levels, as well as in strategic business decisions. Of particular interest in this context as a kind of benchmarking are the efforts of countries and regions that seek to take a leading position in these processes. As for Russia, the current situation, including uncertainty in the energy markets and price volatility, jeopardizes the export revenues of the budget and Russian companies, and the continued relevance of the climate agenda to reduce GHG emissions in the face of sanctions pressure and lack of access to the best available decarbonization technologies complicate green energy transition. In this context, the article examines the new accents of climate policy, reveals the leading priorities of the measures being implemented in Russia to adapt to the challenges of the green energy transition, and analyzes ways to update the Russian energy development strategy. Particular attention is paid to the substantiation and presentation of the author’s concept of alternative macro-scenarios for the development of the Russian energy sector and the development of the highest priority strategies for Russian fuel and energy enterprises to maintain their competitive positions in the face of structural shifts and the implementation of a moderate energy transition option.

US-EU: shaping anti-Russian energy geopolitics

The unfolding crisis of the world order reveals that a struggle for advantages in energy domain has acquired a distinctive geopolitical dimension. The rivalry between Russia and the West has come to the forefront of world politics. Energy became a frontline in the confrontation, and the Ukrainian conflict has spotlighted the trend. The article embraces a range of key issues of energy geopolitics involving Russia, the United States and Europe (EU). The US managed to develop a huge export potential of LNG as a result of revolution in technologies of shale gas and oil production. This capacity enables the US to play a crucial role in the West’s sanctions aimed at undermining Russian energy sector and shrinking Russia’s share in world markets. The United States and the EU focus their efforts on cutting off Russia’s energy ties with Europe and increasing American LNG supplies to European countries. This tectonic shift entails far-reaching strategic implications that will have a great impact on all parties involved.

Стратегические тренды энергетического развития северных территорий России

The dynamic development of the energy market is the source of Russia’s energy diversification processes. The study presents key areas in the development of the Russian energy sector, taking into account new trends and challenges. The Arctic zone of the Russian Federation is potentially becoming a growth driver for the energy market and opens up “new windows” for the country’s economic develop-ment. It is determined that the structure of consumption, use of resources, generation and transmission of electricity is changing. Long-term trends in the energy transition demonstrate a change in the energy balance in favor of clean energy sources: wind, solar, nuclear, geothermal, hydropower, hydrogen, and bioenergy. The development of hydrogen energy, including in the northern territories of Russia, creates a reliable basis for integration into the global hydrogen infrastructure. The change in the energy balance in favor of renewable energy sources (RES) is presented. According to the International Energy Agency (IEA), RES will account for up to 95% of new energy capacity additions by 2026. The global climate agenda — the rejection of fossil fuels — creates new challenges for the Russian economy and the development of its Arctic investment projects. It has been established that the current situation in the context of global technological breakthroughs and climate change is shaping the transition from vertical integration to distributed generation and decentralization. The purpose of the study is to analyze current trends in the development of the energy market, based on the results of which it is necessary to adjust the approaches of the Russian energy sector to future development, making maximum use of the opportunities of the northern territories of Russia.

Modern Trends in Global Energy and Assessment of the Ever-Increasing Role of Digitalization

The global changes which are affecting countries at the moment act as a ‘censor’ of modern energy relations and energy market development strategies in general. The development of the energy market is no longer considered in terms of its efficiency but more in terms of its survivability under the influence of external environmental factors and its ability to maintain an acceptable level of energy safety. In order to fully balance a country’s internal interests and increase its competitiveness in the global energy market, the importance of the problem of choosing a development strategy—following the path of energy independence or cooperative development—is becoming evident. The purpose of this paper is to identify an effective energy strategy for a country under the influence of contemporary challenges. The object of the study is the Russian energy market and the energy companies as its key players. In this context, it examines the situations where Russia and other energy market players are unequally affected by external environmental factors. Particular emphasis is placed on the possibility of overcoming the negative impact of environmental factors during the implementation of measures aimed at ensuring energy safety, achieving a better environmental situation in the country by reducing CO2 emissions, and strengthening the country’s position in the global energy market by changing its own energy development strategy. The dependence of the financial outcome of the energy complex companies of the Russian Federation on the factors of the external and internal environment was determined as the main direction of the study. The financial outcome of the Russian energy complex companies in this article serves as a landmark indicator of energy market development. The working hypothesis of the research is the authors’ claim that it is necessary for modern energy companies in Russia, as important participants in the energy market of the country, to transform their strategy in the direction of deepening cooperation under the influence of external and internal environmental factors. The methodological and theoretical framework of this study consists of classical and modern economic science, covering the analysis of energy market dynamics and structure, as well as the theories aimed at selecting the most effective strategies under the influence of external and internal environmental factors. The study is based on the works of domestic and foreign scientists devoted to the issues of competitiveness, strategic planning, and sustainable development in the context of total digitalization. Within the framework of the conducted research, we used methods of system and factor analysis; statistical research methods, in particular the analysis of dynamic changes, as well as correlation and regression analysis; and methods of comparison, analogy, and generalization. An important source of data on the financial result of companies in the Russian energy sector was the materials of the Federal State Statistics Service of the Russian Federation. As a result of this paper, a notable influence of external and internal environmental factors is determined. Among the most significant factors, digitalization is identified as a development trend. It also represents a driver of improvement in Russia’s energy market, both in terms of improving its competitiveness and environmental safety and in terms of strengthening the country’s leadership position in the global energy market. In addition to the findings, this article provides a theoretical contribution and recommendations for the development of theoretical ideas concerning the choice of an effective strategy for the development of Russia’s energy market. Future research directions are also considered, and the implications of the presented analysis for further research are discussed.

Digitalization of the energy sector: genesis, content, components, evaluation methodology

Currently, in the context of the transition to the development of new sources of renewable energy, the issues of digitalization of the energy sector are becoming increasingly relevant. Digitalization captures all areas of activity and involves the integration and transformation of the energy system, which makes it possible to obtain socio-economic effects. Five groups of indicators have been identified (human capital, reliability and quality of power supply, availability of electricity, environmental sustainability, and political and infrastructural readiness of the country for digitalization), which provide an objective assessment of the digitalization indices of the energy sector of a particular country. Approbation of the procedures and the results obtained was carried out by the method of factor analysis using limited and contributing functions. As a result of the assessment, the leading countries were identified in terms of the digitalization of the energy sector, which have an impact on countries with a low level of digitalization and on the development of mechanisms and tools for the digitalization of the sector. As part of this study, the prerequisites and main components of the readiness of countries for the digitalization of the energy sector are highlighted. The applied analytics made it possible to identify potential points of growth in the digitalization of countries with its low level, to develop appropriate measures. Seven stages of the processes of digitalization of the Russian energy sector are identified, indicating the resulting effects and directions for its possible development.

Decarbonization Options in the Russian Energy Sector: a Comparative Study on Their Economic Efficiency

The study is focused on the comparison of how costly different decarbonization options in Russia are, in terms of their total expenses per a unit of CO2 avoided. We have constructed two marginal abatement cost curves reflecting different decarbonization policies in the Russian energy sector – basic and intensive scenarios. Doing that, we tried to adequately represent economic, regulation and climatic features of Russia (for instance, relatively low capital cost for most of the technologies, typical wind and solar conditions, regulation policy on natural gas cost, etc.). We found that non-carbon transport and energy savings in the demand side seem to be the most affordable decarbonization options in our country while solar heat, nuclear cogeneration and hydrogen as a carrier are uncompetitive in both scenarios observed.

Инвестиционная привлекательность энергетического сектора России для иностранных инвесторов: оценка и рекомендации

The article analyses the investment attractiveness of the Russian energy sector for foreign investors. Analysis is based on such indicators as the volume of energy resources’ production and export as well as their dynamics, foreign direct investment in the country's energy industry, portfolio investment in the "green" energy industry. The author draws up a conclusion that despite the exports decrease in the main types of energy resources (oil, gas, coal, energy) over the past few years (2020–2021), Russia continues to play a leading role in the global fuel and energy complex, the volume of foreign direct investment in industry is steadily growing, the “green” energy industry is actively developing. The author also dwells on the difficulties that foreign investors have to face when investing in the Russian energy sector. The present study results in identifying the main directions for improving investment attractiveness of the Russian energy sector for potential foreign investors.

Effects of local intelligent energy systems integration

The energy sector of Russia is transforming, followed by total electrification and gasification, which has radically changed the fuel landscape and allowed enterprises in various sectors of the economy to create their energy sources based on gas turbine and gas piston cogeneration plants. There are more and more balanced local intelligent energy systems for various purposes, more often operating autonomously, since the process of their integration with the unified energy system of Russia is impossible without power and energy output, which is contrary to the interests of generating companies, territorial grid organizations and the system operator. Overcoming the administrative and technological barriers and obstacles created by significant players in the electric power industry reduces the technical and economic efficiency of local intelligent energy systems that can bring considerable beneficial systemic effects.THE PURPOSE Substantiation of the obtained system effects from integrating local intelligent energy systems.METHODS. A systematic approach to identify the effects of the integration of local intelligent energy systems with the unified energy system of Russia.RESULTS. Local intelligent energy systems are considered objects of distributed electric power industry that perform certain system functions, which is accompanied by a change in the properties of reliability, efficiency and environmental friendliness of the production and transmission of heat and electricity, which leads to various effects. The presence and size of the effects are determined by the type and type of the local intelligent energy system. It is shown that the integration of communal local intelligent energy systems, created for the energy supply of the population and equivalent consumers, has a certain advantage.CONCLUSION. The integration of communal local intelligent energy systems makes it possible to increase the availability and uninterrupted power supply, reduce the negative impact of off-market surcharges and cross-subsidization, improve the uniformity of load schedules for generating and grid equipment, which increases the efficiency of the unified energy system of Russia.

Statistical Analysis of the Patterns of Global Investment Development in China

The purpose of the study is to assess the possible impact of patterns and trends in the development of foreign investment activity of China on the prospects of Russian-Chinese economic cooperation in this area, including in terms of support for the Russian energy sector. The relevance of the study is due to the growing influence of the People’s Republic of China in solving global economic and political issues, as well as the importance of its role as a strategic partner of the Russian Federation, which makes it necessary to assess future prospects.The research methods are methods of analyzing time series, including identifying trends, as well as assessing the structure and structural shifts to obtain an overall picture of the structural transformations of foreign direct investment of China in regional and sectoral sections.The results of the study. Chinese foreign direct investment in the last two decades has been characterized by an intensive growth in volumes, resistant to global economic crises; analysis of their geographical structure demonstrates the constancy of such a feature as maximizing the opportunities of global offshore zones and countries granting privileges to foreign investors; the sectoral structure of Chinese foreign direct investment has certain patterns of change that are consistent with the goals and objectives of economic development of China set by five-year plans, which makes it possible to predict and find solutions in the field of Russian-Chinese cooperation; a trend has been identified to increase the attention of Chinese investors to the issue of capital formation in the Russian economy. In addition, an assessment of the analytical capabilities provided to users by the official statistics of China in terms of information about investment processes is given.Conclusion. Statistical analysis of the indicators of foreign investment activity of China over a long period of time allows us to evaluate and characterize its strategic behavior as one of the world’s largest investors, focused primarily on solving the problems of developing its own economy and its global expansion in the long term. The significance of such studies will now increase, given the importance of the development of foreign economic relations with China for the Russian Federation based on the increased potential of interaction between the two countries in recent years.

ИМПОРТОЗАМЕЩЕНИЕ В ЭНЕРГЕТИЧЕСКОЙ ОТРАСЛИ РОССИЙСКОЙ ФЕДЕРАЦИИ: СОВРЕМЕННОЕ СОСТОЯНИЕ, ПРОБЛЕМЫ И ПЕРСПЕКТИВЫ

This article is devoted to the analysis of the current stage of the import substitution program implementation in the energy sector of Russia. The foreign states’ sanctions have revealed the dependence of the domestic fuel and energy complex on the equipment and technologies imports and engaging of the foreign specialists. Despite the achieved success, Russian fuel and energy complex faces a number of tasks that have to be solved in cooperation with federal authorities, suppliers of substituted goods and technologies, consumers, producers in order to maximize the efficiency of taken measures.

CHINA'S COMPETITIVENESS AS AN INVESTOR FOR RUSSIA IN GENERAL AND FOR THE ENERGY SECTOR IN PARTICULAR

The article the assessment of the China competitiveness is carried out taking into account geopolitical and economic factors. In terms of geopolitics, attention is paid to such initiatives as “Pivot to the East”, “One Belt One Road” and the initiative of countering the spread of COVID-19. In the context of economic indicators, an integral assessment of China's competitiveness as an investor is conducted on the basis of such indicators as the level of GDP, the global competitiveness index, the indicator of investment activity of China in the world and in Russia, as well as the indicator of investment activity in the energy sector of Russia, the number of Chinese investment energy projects and their current number. Based on the results of the analysis, it is concluded that, China has an exceptional competitive advantage from the point of view of geopolitics and macroeconomics. However, within the energy sector, China has been losing ground due to a decrease in investment activity.

Investment Sino-Russian energy cooperation within the framework of the "dual circulation" strategy: State and prospects

The article discusses the state and prospects of investment cooperation between China and Russia in the energy sector within the framework of the “dual circulation” strategy adopted by China in 2020. The analysis of time series showing the share of Russia in China`s foreign investments in the energy sector in comparison with the countries of Central and South Asia, the Middle East and South America, the ratio of Russian and Chinese investments in the energy sector of the Russian Federation, the forms of investment cooperation and volumes of Chinese investments by main investment forms of participation, and the share of Russian energy resources in total imports energy resources in China are carrried out. The investment needs of the Russian energy sector until 2035 in order to determine the prospects for further cooperation are also decribed in the article.

Oil Prices Hedging as a Tool of International Energy Policy

Among the main threats to the Russian energy sector is the high volatility of the oil markets, which leads to significant fluctuations in the volume of revenues received by Russian oil and gas companies and the country’s budget due to the export of hydrocarbon resources. It necessitates the search for mechanisms aimed at minimizing this risk. Such mechanisms should be of a political and economic nature. Russia can achieve a significant reduction in risks for the budgetary system through the introduction of a system of hedging oil prices. This system has found wide application in the practice of several oil and gas companies and is used at the national level in Mexico. The Mexican experience shows that the hedging system allows the country’s economy to overcome periods of falling oil prices on global markets without significant losses. Calculations show that for Russia, the economic effect of hedging could reach 4.36 trillion roubles over the period 2015–2020. The hedging system can also provide Russia with some advantages in the field of energy diplomacy.