For registered participants: CS OTE Portal Sandbox CZ

Introduction

The electricity and gas industries are the most important energy systems, and providing the balance between supply and demand is in the interest of the whole society. The market operator (OTE, a.s.) is obliged1 to process and submit - to the Ministry of Industry and Trade of the Czech Republic, the Energy Regulatory Office, the transmission system operator and the distribution system operator - a report on anticipated future electricity and gas consumption and the ways of securing the balance between the supply of, and demand for, electricity and gas. The outputs concerning the solutions, in the form of reports, presentations at meetings of professional groups and other informational material, provide support to the decision-making sphere of the Czech Republic for political decisions about the future concept of the energy industry. This report is a brief summary for the public; detailed results of the study were submitted to statutory bodies.

The study analysed data available since September 2019 and was issued in December 2019.

Verification of potential development paths of the energy industry in relation to other sectors, transport besides others, is crucial for today. Energy industry faces challenges related first of all to reduction in greenhouse gas emissions and the effort for carbon neutrality. Decarbonisation is not a chimera any more and not only the EU but also the Czech Republic have to decide how to achieve it. Although the biggest hopes of today are put, at least in the European Commission, to renewable sources, safeguarding reliable energy system will need other available technologies, such as natural gas or nuclear energy.

The subject of this year The Long-term Balance is therefore a comparison between two methods of achieving a significant level of decarbonization. The first one, case study called Low-Carbon – New Technologies, uses a large-scale penetration of new technologies to reach decarbonisation. While the other one, Low-Carbon – Conservative, relies on proven technologies.

The analysed case studies are set in Central Europe (the scope is much wider in context of natural gas) and illustrate the consequences for the Czech energy sector in its specific development in close interconnection to solutions for the electricity, gas and heating industries. The case studies use sector coupling mainly of electricity and heating industry, but also of electricity and gas industry. The merit of the study is not only the determination if the power or gas system will be operable under certain circumstances. The main benefits are the definition of demand for electricity, heat and natural gas, clarification if there will be enough primary sources to cover the demand, the implications for greenhouse gas emissions and specification of the resulting economic impacts. Detailed analyses of electrical grids and gas systems are also included. The analyses are based on detailed and interlinked systems modelling the operation of electricity sources and electricity and gas networks.

Within the energy sector, the political, economic and ideological words collide as well as the interests of public sphere, state administration and private entities and views of those who favour the old and the new form of the industry. Accountably formulated analyses of this sector have to respect three elementary aspects: continuous consistency, maximum transparency and most of all unconditional impartiality. The Long-term Balance has always greatly honoured these principles and remains bound by them also in this year issue of the document.

 

1 See § 20a, paragraph 4, letter f), Act no. 458/2000 Coll., on Business Conditions and Public Administration in the Energy Sectors and on Amendment to Other Acts, as amended; further see The State Energy Policy, target 6.2e.