Gas Must Use its Flexibility to Balance Renewables

The 2012 Gas Week in the European Parliament included a series of presentations by several organisations and companies and was concluded with a parliamentarian hearing. Central subject was the way how natural gas can contribute in the transition to the general use of renewable energy sources. Some speakers even touched the role of gas in the post-transition time.

During the hearing, Michaël Köhler, energy commissioner Günther Oettinger's head of cabinet, represented the European Commission. However the gas week showed a lot of characteristics of a lobbying-event, he expressed his satisfaction that several main players in the sector started a discussion instead of a competition. "In the transition towards a low carbon energy society energy efficiency, carbon capture and storage, renewable and even nuclear energy can be present. But in every possible scenario, gas is playing an important role. It is clear that this role is based on its flexibility that allows gas to be used as an intermittent energy source."

Köhler also looked in the future. "Even after the low carbon society is realised, gas still can be an actor, if the gas companies can provide a performing  carbon capture and storage system. Other ways, it can only be used as a backup energy source. This is a big worry for me. Therefore, I'm very interested to see the results of the CCS-factory that shortly will start working in Norway."

Liquid market

The European Commission wants an integrated European gas market to be realised within three years. "Only this way we can achieve more liquidity on the market. To reach this target, it is necessary  to dispose over more storage capacity, for gas and for electricity."

Reinhold Buttgereit, secretary general of the European Photovoltaic Industry Association (EPIA), underlined the possibilities of combining gas and solar energy. Main base for this synergy is the almost unpredictable and irregular energy production by solar systems. Renewables have to become more flexible. Gas can use its natural flexibility. We have to develop systems with gas drive generators to produce electricity and to balance the irregular electricity production from pv-systems."  Representing a much younger branch, he addressed a distinct message to the gas sector representatives: "The gas sector has to act. We don't need stranded investments."

Gerald Linke, E.On Ruhrgas' vice-president (competence centre gas technology and energy system)  brought to the attention that in Germany 40 million houses are being heated by gas. "3 Million of them are using condensation boilers and most of them combine the use of gas with solar panels. Furthermore, it is possible to mix biomethane with natural gas in the baseload."

Not only gas

Tom Brookes, managing director at the European Climate Foundations energy strategy centre, showed more reserves. "We have to avoid to get involved in a totally gas-scenario. The consumption of gas doesn't produce as much CO2 as coal, but it does produce it.  However, in the short run, we will need more gas. And contrary to coal, it can bring balance in the energy systems."

Rune Bjørnson, vice-president natural gas at Statoil, stated that gas doesn't really benefit from its relatively clean image in Europe. "China already made the choice to use gas to balance its energy systems. But the European Union has chosen for a correction system based on CO2-emissions that makes gas relatively expensive. That way, coal becomes more competitive again. In Germany, the use of coal as an energy source has risen to 20% the past two years. Gas looses market shares. In the UK, the situation is comparable. But coal and renewable aren't an efficient mix. The EU is paying a very high price for a very small benefit. Most part of the CO2-emission reduction was due to the economical crisis in 2009. Since then, I didn't see any decrease of CO2-emissions in the EU."

Disturbed balance

In the view of Bjørnson, emission trading systems (ETS) are disturbing the balance between gas and coal. But also Brookes is not convinced that actual ETS and its emission allocations are working efficiently. Buttgereit is irritated by the intransparency of the system: "We pay a lot of taxes, but don't see clearly who's getting the benefits."

Köhler admits there are problems, but: "ETS play their roles. However, the general conviction is that we should review the actual systems this year." And, answering a suggestion from Brookes: "Is it really necessary to make some sources much more expensive to make gas more competitive?" Bjørnson sees no problems in "financial instruments," as long as they are supported by a real market.

More import can decrease prices

Then the debate shifted to the possible import of Caspian and American (shale) gas that could cause a decrease in gas process in Europe. "Now the European prices are reaching almost the double of the American levels." Bjørnson is hopeful. "The question is not if we will get Caspian gas in Europe, but how we will get it in Europe."

Politics

Moderator and Austrian EP-member Paul Rübig made clear that the energy debate is not only a technical, ecological and economical issue. "There are also politics. The ambition for example, of Saudi Arabia, to build its own nuclear plant, is purely politically motivated."

By Koen Mortelmans