DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid

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DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
DECARBONISING
THE ENERGY SYSTEM
The role of Transmission System Operators
DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
DECARBONISING
THE ENERGY SYSTEM
The role of Transmission System Operators

Front page image from 50Hertz/Jan Pauls
DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
Executive summary

                                                                                                                Reaching this ambitious goal requires all parts                         The central role that TSOs will play in this
                                                                                                                of society to actively work together. A systemic,                       increasingly complex, interconnected and va-
                                                                                                                integrated approach to decarbonisation, whe-                            riable energy system means that their contri-
                                                                                                                re demand and supply are matched at the least                           bution is crucial for achieving Europe’s climate
                                                                                                                cost, needs to be adopted. The production and                           goals.
                                                                                                                use of energy across all sectors of the EU eco-
                                                                                                                nomy account for more than 80% of the EU’s                              This is why a group of leading European TSOs
                                                                                                                GHG emissions1, with similar levels in strongly                         including Terna (IT), RTE (FR), Elia Group (BE and
                                                                                                                interconnected neighbouring countries.                                  DEU), TenneT (NL & DEU), Amprion (DEU), Red
                                                                                                                                                                                        Eléctrica (ES), Swissgrid (CH) and APG (AUT)
                                                                                                                Direct electrification coupled with                                     have worked together to clarify and assess the
                                                                                                                                                                                        contribution of TSOs to the decarbonisation of
                                                                                                                energy efficiency and the growing                                       the energy system.
                                                                                                                share of renewable generation are
                                                                                                                the primary tools for decarboni-                                        TSOs will provide the EU and Member States
                                                                                                                sing the energy sector.                                                 with their unique and neutral expertise in order
                                                                                                                                                                                        to promote the establishment of a secure and
                                                                                                                Electricity will play a key role in the decarbonisation                 efficient interconnected power system that will
                                                                                                                of the economy thanks to the higher efficiency of                       support socioeconomic prosperity.
                                                                                                                electrical end uses and the integration of mature re-
                                                                                                                newable generation sources into the system (such                        They have welcomed Europe’s work and efforts
                                                                                                                as wind, solar, hydro and biomass). This has been                       towards decarbonisation and have embedded
                                                                                                                confirmed by all long-term energy scenarios2, whi-                      sustainability in their approach to the develop-
                                                                                                                ch predict that there will be a widespread adoption                     ment and operation of their electricity networks.
                                                                                                                of electrical assets (such as electric vehicles and                     TSO contributions to reducing GHG emissions
                                                                                                                heat pumps) and electrification of industrial proces-                   fall under two categories.
                                                                                                                ses. All future energy scenarios also confirm that
                                                                                                                the electricity network will become the backbone of                     Firstly, TSOs are contributing to
                                                                                                                a greener energy system. Replacing fossil fuels with                    the decarbonisation of Europe by
                                                                                                                electricity produced by low carbon energy sources
                                                                                                                                                                                        reducing and limiting the carbon
                                                                                                                is already the fastest and most mature solution for
                                                                                                                decarbonising most sectors of the European eco-                         footprint of their own activities and
                                                                                                                nomy, including the light transport, residential and                    value chains respectively.
                                                                                                                service sectors. Electricity is expected to cover
                                                                                                                more than 50% of end use consumption in 2050,                           In line with international GHG emission stan-

          EXECUTIVE SUMMARY                                                                                     as outlined in EU long-term energy scenarios2 (in
                                                                                                                comparison with 23% today3).
                                                                                                                                                                                        dards, TSOs monitor their direct and indirect
                                                                                                                                                                                        GHG emissions and implement measures to
                                                                                                                                                                                        reduce them. They do this through reducing
                                                                                                                However, in order for carbon neutrality to be rea-                      SF6 leaks, replacing SF6 gas with less harmful
                                                                                                                ched in some “hard-to-abate” sectors (in which te-                      alternatives when technologically feasible; they
                                                                                                                chnical and economic constraints prevent the use                        efficiently develop their infrastructure to limit
European electricity transmission system operators (TSOs) contribute to the objective of mitigating global      of electricity), direct electrification will need to be                 grid losses and partially offset the expected in-
warming, which is outlined in the 2015 Paris Agreement. This was signed by the European Union (EU)              complemented with the production and/or import of                       crease which occurs in proportion to electricity
and its neighbouring countries, including Switzerland. TSOs are fully committed to enabling a secure and        green molecules, such as hydrogen and green fuels.                      flows on the network; and they undertake ener-
efficient transition towards a greener Europe - one in which renewable energy sources (RES) are widely          These molecules will be mostly produced via Power-                      gy efficiency measures in their switching sta-
available and in which energy is used as efficiently as possible.                                               to-X technologies, thus bolstering the importance of                    tions and buildings, implement green procure-
                                                                                                                integrating low carbon electrical sources - especially                  ment procedures and adopt circular economy
The EU and Switzerland are set to become climate-neutral by 2050, delivering on their commitment to             renewable generation sources - into the system.                         approaches.
achieving an inclusive, fair and green transition. This objective is at the heart of the European Green Deal,
which includes the goal of cutting greenhouse gas emissions by at least 55% (when compared with
1990 levels) by 2030. The related “Fit for 55” package comprises a set of legislative adaptations covering      1. Emissions of the energy sector compared to total EU28 emissions in 2019 (Source: Eurostat – Data Explorer – June 2021).
wide-ranging policy areas, including renewables, energy efficiency, energy taxation and greenhouse gas          2. Based on EU long term energy scenarios and in particular the scenario 1,5 Tech of the EU long term strategy (Source: JRC Technical Re-
(GHG) emission schemes, among others.                                                                               ports - Towards net-zero emissions in the EU energy system by 2050).
                                                                                                                3. Based on 2019 Eurostat energy balance (version 2021).

                                                                                                                                                                   DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators               1
DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
Executive summary

    Secondly, TSOs are playing a le-                       nage an increasingly complex and digitalised
                                                           energy system on the path towards carbon
    ading role in enabling the ener-
                                                           neutrality; this system is one in which the sha-
    gy transition by taking on the                         re of intermittent RES is growing and consu-
    major challenge of integrating                         mers are gradually being empowered to take
    renewable generation and flexi-                        on active roles. TSOs are, therefore, currently
                                                           playing the role of energy transition enablers,
    bility resources into the energy                       since they are facilitating the decarbonisation
    system and supporting the di-                          of the European electricity system and, con-
    rect and indirect electrification                      sequently, the decarbonisation of society as
                                                           a whole, using complex and innovative tools
    of different sectors of the eco-                       to do so.
    nomy.
                                                           The main tools used by TSOs in their role
    The core of TSO activities and responsibilities        as enablers include the expansion and de-
    is to ensure the secure and high-quality de-           velopment of the power transmission grids;
    livery of electricity across national and inter-       the integration of flexible assets and servi-
    connected transmission grids which are the             ces into the system (to facilitate demand
    backbone of the European electricity system            side response, storage and sector coupling),
    they operate. TSOs are responsible for main-           encouraging associated developments in
    taining the electrical frequency at 50Hz every         market design and regulatory frameworks;
    second across the European interconnected              and participation in debate and analytical
    synchronous system. They apply their inde-             assessment related to the future design of
    pendent expertise to develop reliable and ef-          electricity markets, capacity mechanisms
    ficient interconnected grids and related grid          and congestion markets, so playing a pi-
    access mechanisms under the supervision of             votal role in assessing challenges and pro-
    regulatory agencies. However, the role TSOs            posing solutions for an efficient integra-
    play has been widening. They have to ma-               tion of renewables into markets and grids.

2   DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators
DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
Executive summary

Digitalisation and investments in research and                Given this crucial role, an assessment of the
development are additional key approaches                     performance of a TSO with regards to su-
used to ensure effective RES integration and                  stainability and decarbonisation should not
the electrification of consumption. These to-                 stop at annual evaluations of its carbon fo-
ols either directly contribute to GHG emission                otprint. Instead, the impact that a TSO has
reduction or indirectly contribute to enhan-                  on the decarbonisation of the system as a
cing system reliability, ensuring a high level                whole, which will ultimately also contribu-
of security, the proper functioning of markets                te to the reduction of its carbon footprint,
and delivering value to end users as the sy-                  should be considered. The expansion and
stem adapts to higher levels of renewables.                   development of TSO activities are therefore
For example, interconnections can be used                     to be recognised as active contributions to
to carry RES surplus from one country to                      furthering the electrification and decarboni-
another which still relies on fossil fuels gene-              sation of society.
ration, thus directly contributing to a reduction
in the overall emission factor of its generation              As a concrete example, whilst the develop-
mix. More broadly, the interconnection of                     ment of a new line connecting a TSO’s on-
electricity systems means that local varia-                   shore grid to a wind farm will lead to an in-
tions in electricity generation are averaged                  crease in its individual carbon footprint, there
out, which is particularly useful for integrating             will be a net decrease in carbon emissions
increasing shares of renewable sources into                   across the system due to the integration of
national electricity mixes. Interconnections                  carbon-free electricity over the lifetime of the
also indirectly contribute to enhancing sy-                   farm.
stem reliability on a broader geographical
scale, mutualising flexibility resources too.                 To bolster their activities, TSOs
                                                              need to be recognised as
It seems clear, then, that the crucial role
TSOs are playing in the energy transition can                 enablers of the energy transi-
only be fully appreciated when their contribu-                tion at European level.
tion to the system as a whole is considered.
Indeed, whilst the magnitude of an individual                 TSO activities, which lead to system-level
TSO’s direct and indirect emissions currently                 emission reduction, need to be explicitly
reaches 1 million tCO2eq per year on avera-                   mentioned in GHG emission inventories un-
ge, the decarbonisation impact that all Eu-                   der common assessment and monitoring
ropean TSOs could have on the energy sy-                      frameworks, in addition to GHG emission
stem as a whole could reach up to 3 billion                   sources already associated with their carbon
tCO2eq. per year4.                                            footprint.

4. E
    U28 GHG emissions in 2019 for the energy sector according to Eurostat (3,3 billion tons of CO2eq emissions of the
   energy sector vs approximately 3,8 billion tons of CO2eq emissions across all sectors).

                                  DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators            3
DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
Table of contents

    01
    Introduction   5
                       02
                       The role played by
                       electricity in the
                                                                                                           03
                                                                                                           How TSOs
                                                                                                           contribute to GHG
                       decarbonisation                                                                     emission reduction                9
                       of the energy system   7

                                                                                                           Introduction                        9

                                                                                                           Reducing the carbon
                                                                                                           footprint of TSO activities       11

                                                                                                           Contributing to system-level
                                                                                                           GHG emission reduction       14

                                                                                                           Revealing the full
                                                                                                           decarbonisation potential
                                                                                                           of TSOs                           21

                                                  Annex

                                                  Glossary
                                                                                                                    22

                                                                                                                    22
                                                                                                                              04
                                                  Introduction to the European cost-benefit analysis                23

                                                  Direct electrification: focus on France                           23

                                                                                            DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   4
DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
The role played by electricity in the                How TSOs contribute to
                                                                                                        Introduction              decarbonisation of the energy system                  GHG emission reduction                 Annex

                                                                                                        In seeking to meet the objectives of the agree-                     This paper, which was written by 8
                                                                                                        ment, in 2019 the EU completed an update of                         European TSOs5, explains and assesses
                                                                                                        its energy policy framework by publishing its                       the key role TSOs are playing in the ener-
                                                                                                        Clean Energy for all Europeans package. This                        gy transition and Europe’s transformation
                                                                                                        package sets binding targets for Member Sta-                        into a carbon-neutral society. It addresses
                                                                                                        tes to be reached by 2030 in relation to decar-                     the role of electricity carriers, the ways
                                                                                                        bonisation, the future RES share, energy effi-                      in which TSOs are contributing to the de-
                                                                                                        ciency and interconnection capacity. Member                         carbonisation of society and the need for
                                                                                                        States have submitted National Energy and Cli-                      adopting a system-wide approach when
                                                                                                        mate Plans (NECPs) to the European Commis-                          assessing the impact of their activities.
                                                                                                        sion, outlining the measures they plan to imple-                    Clarifying the role of TSOs in this way is
                                                                                                        ment in order to meet the 2030 climate targets.                     crucial for maximising their sustainability
                                                                                                                                                                            strategies and minimising the costs of de-
                                                                                                        At the end of 2019, the EU published the Green                      carbonisation for European society.
                                                                                                        Deal, which outlined its goal of making Europe
                                                                                                        the first carbon-neutral continent by 2050 and
                                                                                                        its growth strategy for transforming Europe into
                                                                                                        a modern, resource-efficient and competitive
                                                                                                        economy. At the end of 2020, the EU decided
                                                                                                        to revise the 2030 European GHG emission re-
                                                                                                        duction target, increasing it from 40% to 55%
                                                                                                        (compared with 1990 levels).

                                                                                                        Undergoing the energy transition, reaching car-
                                                                                                        bon neutrality and establishing an affordable,
                                                                                                        secure, and cost-effective energy system requi-
                                                                                                        res the adoption of a System of Systems view
                                                                                                        of all sectors of the economy and strong policy
                                                                                                        coordination between the EU and its Member
                                                                                                        States. Investments across each sector should
                                                                                                        be focused on a pragmatic, integrated and in-

                      INTRODUCTION                                                                      clusive approach, with the aim of minimising
                                                                                                        decarbonisation costs in the social interest.

                                                                                                        While all societal actors are working towards
                                                                                                        decarbonisation by reducing their carbon fo-
                                                                                                        otprint, some players are actually enabling Eu-
                                                                                                        rope’s transition to a greener and more sustai-
The persistent increase in greenhouse gas emissions, their harmful effects on ecosystems and            nable economy. In the energy sector, electricity
the growing attention paid to climate and environmental issues highlight that the energy model          transmission system operators (TSOs) play this
that fuelled the growth of the global economy during the last century is no longer sustainable. A       role: they are enabling the electrification of
worldwide commitment is required to progressively reduce natural resource consumption, increase         consumption and facilitating the integration of
energy efficiency and decarbonise all energy sectors. Acting now is essential.                          RES into the system while ensuring the efficient
                                                                                                        operation of their grids and guaranteeing the
The EU has been at the forefront of international efforts to fight climate change since 1990. As part   quality and security of electricity supply.
of this work, it played a leading role in the realisation of the 2015 Paris Agreement, which was the
first universal, legally binding global climate change agreement. 190 governments agreed on the
long-term goal of keeping the global average temperature increase to well below 2°C (preferably to
1.5˚C) in comparison with pre-industrial levels.

                                                                                                        5. E
                                                                                                            lia Group acts as a holding company which owns both Elia (the Belgian TSO) and 50 Hertz (one of the 4 TSOs in Germany; TenneT
                                                                                                           represents both the TSO of the Netherlands and one of the 4 TSOs in Germany.

                                                                                                                                                        DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators          5
DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
The role played by electricity in the                 How TSOs contribute to
                                                                                                       Introduction                     decarbonisation of the energy system                   GHG emission reduction                   Annex

                                     THE EU GREEN DEAL                                                                                                  EU CONSUMPTION TRENDS
The European Green Deal is the EU’s growth strategy to transform the EU economy into a                      Figure 2 ANNUAL VARIATION RATIO VS 1990
sustainable economic model. Published in December 2019, the overarching objective of the                     3
strategy is for the EU to become the first climate-neutral continent by 2050, resulting in a cle-
aner environment, more affordable energy, smarter transport, new jobs and an overall better
                                                                                                            2.5
quality of life for European citizens. The plan involves the introduction of a coherent legislative
framework to guide the continent’s transition towards a carbon-neutral economy.
                                                                                                             2
Figure 1 EUROPEAN GREEN DEAL ROADMAP

                                                                                                            1.5
                                               European
                                                Green
                                                                                                             1
                                                 Deal

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 December 2019                                                                                                           GDP                           Population                  GHG emissions                        Energy consumption

 • Launch of the EU Green Deal                                                                              Thanks to the adoption of climate policies such as the Clean Energy for all Europeans packa-
                                                                                                            ge, over the last three decades Europe has been able to both reduce its total end use con-
                                                                                     January 2020           sumption and replace harmful fossil fuels (such as coal and oil) with renewables. The combi-
                                                                   «Just transition mechanisms»,            nation of energy efficiency mechanisms and subsidies for the integration of renewables into
                                                             for most vulnerable sectors and regions        the system has led to a significant reduction in the EU’s carbon intensity and to an obser-
 March 2020                                                                                                 vable decoupling between energy consumption and macroeconomic trends.

   roposal for a «Climate law» to reach
 •P                                                                                                         Over the last 15 years, the share of RES in the final energy consumption has increased
  carbon neutrality by 2050
                                                                                                            from 9% to 19%, while the share of RES in the electricity generation mix has increased
 •P
   roposal for Circular Economy action plan                                             May 2020           from 14% to 34%6. However, the use of renewable energy varies in different sectors. While
                                                                                    Launch of the           the commercial, residential and industrial sectors today use a significant amount of thermal
                                                                         EU Biodiversity strategy           renewables, biofuels and electricity (which is partially decarbonised), the transport sector is
 July 2020                                                                                                  still dominated by fossil fuels7.

 Adoption of the EU strategies for energy                                                                   Figure 3 ENERGY CONSUMPTION MIX IN MAIN SECTORS OF THE ECONOMY IN 2019
 system integration and hydrogen
                                                                                                                             0%
 Taxonomy for sustainable activities comes                                        September 2020
                                                                                                            Commercial                  29%      15%          48%         7%    147
 into force
                                                                            Proposal to raise the
                                                              2030 GHG reduction target to 55%
 December 2020
                                                                                                             Residential       2%               36%                       19%              24%                  18%      284
 Proposal to review the TEN-E regulation
                                                                                                                             0%
                                                                         July 2021                            Transport        1%                                          92%                                                 2% 5%   331
                                                                    Publication of the
                                                                  «Fit for 55» package
                                                                                                                  Industry         5%          32%                  20%                 34%               9%      259

The EU’s next objective is the delivery of the “Fit for 55” legislative package in the summer of                               0               50            100           150             200            250            300           350
2021. This aims to fundamentally overhaul the EU’s climate policy architecture and put the EU                                                                             Energy consumption (Mtep)
on track to deliver on its 2030 climate target to reduce GHG emissions by 55% (compared with                  Solid (fossil)                  Natural gas            Other (fossil)              Electricity            RES            Total
1990 levels). The package comprises a wide set of new or recast directives touching on several              (Source: Eurostat)
topics such as renewables, energy efficiency, energy taxation, carbon emission trading schemes,             6. Based on Eurostat RES Share methodology (Directive 2009/28/EC).
gas market and infrastructure (including hydrogen production and use), etc.                                 7. Based on 2019 Eurostat energy balance (version 2021).

                                                                                                                                                              DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators       6
DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
The role played by electricity in the                 How TSOs contribute to
                                                                                                                             Introduction                decarbonisation of the energy system                   GHG emission reduction             Annex

                                                                                                                             Figure 4 EVOLUTION OF FINAL ENERGY CONSUMPTION AND KEY INDICATORS

                                                                                                                                                       2019                                                                  2050
                                                                                                                                                     (Eurostat)                                                 (Elaboration on EU LTS Tech 1.5)

                                                                                                                             67%                                                                                                                      51%

                                                                                                                                                        1.057                                                                 672                     27%
                                                                                                                                                        MTEP                                                                 MTEP
                                                                                                                             23%

                                                                                                                                                                                                                                                      19%

                                                                                                                             10%                                                                                                                 3%

                                                                                                                                   Electricity                  Green hydrogen                          Other RES/decarbonised                  Other fossil

                                                                                                                                                  ~2800 TWh                      Electricity End Use Demand               ~4000 TWh

                                                                                                                                                       34%                                                                    85%
                                                                                                                                                                                             RES share
                                                                                                                                                                                            in electricity
                                                                                                                                                    960 TWh                                                                3400 TWh

                                                                                                                                                                                   GHG emissions reduction
                                                                                                                                                       24%                                                                  Net-zero
                                                                                                                                                                                         (vs 1990)

                     THE ROLE PLAYED                                                                                         (Sources: Eurostat and elaboration on the EU Long-Term Strategy Tech 1.5 9 ).

                      BY ELECTRICITY                                                                                         A first common element included in all future                             electricity grid will function as the backbone of
                                                                                                                             energy scenarios is that energy efficiency will                           the decarbonisation of other energy sectors.
                                                                                                                             be the primary instrument for reaching carbon                             Electricity is a major building block of a clima-
                                                                                                                             neutrality. By introducing the “energy efficiency                         te-neutral energy system because of the higher
                   IN THE DECARBONISATION OF THE ENERGY SYSTEM                                                               first” principle, the European Commission invi-                           efficiency of electrical end uses and the maturi-
                                                                                                                             ted Member States to include energy efficiency                            ty of renewable electricity technologies.
                                                                                                                             in all of their planning, policy and investment
Reaching the ambitious climate objectives laid out in the European Green Deal requires the active                            decisions. As a consequence and as confirmed                              To exploit the full decarbonisation potential of
participation of actors from across all sectors of society. The energy sector should lead the way,                           by the EU’s long-term strategy, the aim is for                            electricity, the share it occupies in the energy
since it accounts for approximately 82% of total European GHG emissions8.                                                    Europe’s final energy consumption to decrease                             sector must be increased. This process, typi-
                                                                                                                             by (a minimum of) 35% by 2050 in comparison                               cally referred to as the direct electrification of
In line with the provisions of the Green Deal, carbon neutrality should be reached through the re-                           with 2019 levels.                                                         energy consumption, also contributes to redu-
alisation of cost-optimal coupling between supply and demand whilst minimising decarbonisation                                                                                                         cing primary energy needs. According to the
costs for society.                                                                                                           A second common element of all future ener-                               EU’s long-term strategy, electrification of con-
                                                                                                                             gy scenarios is that electricity will become the                          sumption is expected to increase from 23% in
                                                                                                                             dominant energy carrier and that the European                             2019 to more than 50% by 2050. This, coupled

8. Emissions of the energy sector compared to total EU28 emissions in 2019 (Source: Eurostat – Data Explorer – June 2021).   9. JRC Technical Reports – Towards net-zero emissions in the EU energy system by 2050.

                                                                                                                                                                                  DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   7
DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators - Swissgrid
The role played by electricity in the            How TSOs contribute to
                                                                                                                Introduction          decarbonisation of the energy system              GHG emission reduction             Annex

with the increase in renewables in the energy           rall efficiency of different types of light transport   also play an important part in the decarboni-                  This process, also referred to as the indirect
mix (they are predicted to make up more than            or heating systems, which are all supplied by           sation of the whole energy system. Despite the                 electrification of consumption, can support the
85% of the generation mix by 2050, based on             electricity generated from renewables (see info         efficiency of electrical technologies and their di-            decarbonisation of sectors like heavy industry
Eurostat's RES share calculation), will allow           box below).                                             rect coupling with renewable generation sour-                  (where molecules are also used as feedstock,
over half of the energy consumption in 2050 to                                                                  ces, direct electrification is in fact not sufficient          for example in the refinement and production
be completely decarbonised.                             These examples show that from an energy use             for reaching carbon neutrality. This is because                of ammonia), heavy duty transport, maritime
                                                        perspective, direct electrification of consump-         there are “hard-to-abate” sectors, for which                   transport and aviation, which all require high
Electricity is an extremely valuable form of            tion is the most effective way to decarbonise           direct electrification is not technically or eco-              energy density fuels.
energy that can be converted into useful power          the energy system and should always be cho-             nomically possible. In addition to electrification
(e.g. mechanical traction) with a very high le-         sen as the first option when it is technically and      and the use of biofuels, such sectors can be                   Besides energy efficiency measures, the de-
vel of efficiency. By contrast, thermal energy          economically feasible.                                  decarbonised through Power-to-X (P2X) pro-                     carbonisation of the energy system will require
reaches thermodynamic limits quite quickly,                                                                     cesses, where electricity is used to produce ei-               the direct and indirect use of the electricity car-
meaning it holds lower levels of efficiency. This       A third common element included in future               ther heat or synthetic gases (such as hydrogen)                rier, making transmission system operators key
can be easily observed by comparing the ove-            energy scenarios is that green molecules will           and liquid fuels.                                              actors in the energy transition.

      EXAMPLES OF THE INTRINSIC ENERGY EFFICIENCY OF ELECTRICAL
       ALTERNATIVES IN THE LIGHT MOBILITY AND HEATING SECTORS

   The use of an electric vehicle makes it possible to travel 3 times the distance travelled with a hydrogen    Figure 6 COMPARISON OF EFFICIENCY: HEAT PUMP VS H2 BOILER
   fuel cell vehicle and up to 4 times the distance travelled by a vehicle supplied by methane (obtained from             VS SYNTHETIC METHANE BOILER
   the methanation of hydrogen), starting from the same kWh of electricity produced by RES. The conversion
   of electricity into hydrogen (and eventually methane) and its subsequent use in fuel cells (or combustion
   engines) inevitably result in a reduction in overall efficiency.

   Figure 5 C
             OMPARISON OF EFFICIENCY: ELECTRIC VEHICLES VS H2 FUEL CELL
            VS SYNTHETIC METHANE (ICE)

                                                                                                                The same comparison can be applied to the residential heating sector. With the same primary energy input,
                                                                                                                the use of a conventional boiler supplied by hydrogen or synthetic methane results in a much lower energy
                                                                                                                output when compared with the energy generated by an electric heat pump. In particular, when assuming
                                                                                                                an energy input of 1 kWh of electricity produced by RES and using standard values for the Coefficient of
                                                                                                                Performance (COP) of the heat pump (e.g. COP = 3) and for the efficiency of the boiler (e.g. 90%), the use
                                                                                                                of a heat pump produces about six times the energy of a synthetic gas boiler (hydrogen or methane).

                                                                                                                                                          DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   8
The role played by electricity in the            How TSOs contribute to
                                                                                                       Introduction        decarbonisation of the energy system              GHG emission reduction              Annex

HOW TSOs CONTRIBUTE TO                                                                                 In this evolving context, the role played by                 -Q
                                                                                                                                                                      uality of supply: TSOs need to ensure con-

GHG EMISSION REDUCTION                                                                                 electricity carriers is growing in importance.
                                                                                                       At the same time, TSOs will continue to be
                                                                                                                                                                     tinuity of service and high-quality standards
                                                                                                                                                                     (in terms of voltage levels, harmonics, etc.).
                                                                                                       responsible for the efficient development and                - Resilience: the electricity system must be
                                                                                                       operation of their electricity transmission grids              able to react to extreme and rare events and
                                                                                                       in accordance with the following key pillars:                  promptly return to normal operating conditions.

                                                                                                       -S
                                                                                                         ecurity of supply: electricity systems need               - Sustainability: TSOs need to operate and
INTRODUCTION                                                                                            to manage disturbances with minimum servi-                     develop the electricity system while minimi-
                                                                                                                                                                       sing the impact of their activities (direct and
                                                                                                        ce disruption, i.e. without violating the opera-
As a result of European climate policies, the power sector is undergoing a major change as it shifts                                                                   value chains) on the environment (including
                                                                                                        ting limits of the system. This includes provi-                GHG emissions but also biodiversity, consu-
from a unidirectional system with a few big power plants and passive consumers to a fragmented
and bidirectional system comprising both large-scale and small-scale intermittent renewable ge-         ding information on adequacy requirements                      mption of raw materials or resources, waste
neration facilities and thousands or even millions of small, flexible electrical consumption assets.    to ensure that generation, storage and tran-                   management, etc.), looking at the interactions
                                                                                                        smission assets always match demand.                           between the grid and the ecosystem.

                                                                                                                                                DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   9
The role played by electricity in the   How TSOs contribute to
                                                                                                           Introduction   decarbonisation of the energy system     GHG emission reduction   Annex

     Sustainability lies at the heart of all TSO activities: it provides a framework for the fulfil-
     ment of their roles whilst minimising the economic and environmental costs for society.
     As part of their commitment to sustainability and their work towards carbon neutrality,
     TSOs play a major role in the reduction of the energy sector’s GHG emissions. TSOs
     are supporting society’s transition to a low-carbon future by:

     1.       	acting to reduce, avoid or limit GHG emissions linked the
                carbon footprint of their own activities (scopes 1, 2 and 3 of
                the GHG emission protocol);

     2.           nabling the decarbonisation of the wider economy by
                 e
                 facilitating the replacement of fossil fuels with RES and the
                 electrification of consumption.
     Whilst both types of actions are necessary to reach carbon neutrality by 2050, the decarbo-
     nisation potential held in actions included in the second point is much more far-reaching than
     the first. Indeed, whilst the magnitude of a single TSO’s direct and indirect GHG emissions
     currently reaches 1 million tCO2eq per year on average, the decarbonisation impact that all
     European TSOs could have on the energy system as a whole could reach up to 3 billion
     tCO2eq. per year10.
     10. Aligned with the overall GHG emissions of the EU28 energy sector in 2019 according to Eurostat.

10   DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators
The role played by electricity in the            How TSOs contribute to
                                                                                                                Introduction             decarbonisation of the energy system              GHG emission reduction              Annex

REDUCING THE CARBON FOOTPRINT OF TSO ACTIVITIES

TSOs contribute to decarbonisation by reducing or limiting the carbon footprint of their own activities and
encouraging other actors across the value chain to limit theirs. This involves tracking and classifying their   In-house SF6 monitoring application
own GHG emissions in line with the GHG emission protocol. The latter establishes a comprehensive global
standardised framework for measuring and managing GHG emissions produced as a result of private and
public sector operations and actions. This framework divides emissions into 3 categories, as outlined below.
                                                                                                                Monitoring SF6 consumption is the first way to estimate leaks and implement ef-               Completed in    2021
                                                                                                                fective reduction strategies. To this end, Terna has devised an in-house applica-
                                                                                                                tion that allows the monitoring of equipment that contains SF6 gases throughout
                This comprises direct emissions that occur from sources that are owned or control-              its lifecycle (installation, maintenance and dismantling). This will allow Terna to
 Scope          led by the company. For a TSO, this includes emissions produced as a result of the              identify and prioritise measures to replace or minimise the use of SF6.

        1       consumption of fossil fuels in activities related to construction, grid development
                and maintenance (i.e. transport and machinery repair), SF6 leaks in facilities, etc.
                                                                                                                RTE GIS plan
                This includes GHG emissions that are produced as a result of the generation of pur-
 Scope          chased electricity/heat that are consumed by the company. These are defined as

        2
                the forms of energy that are purchased or otherwise brought into the organisational
                boundary of the company. For a TSO, scope 2 emissions are mainly related to los-                RTE has reinforced its leakage treatment policy to reduce emissions from                 To be completed in   2035
                ses during the exploitation of the grid, with minor emissions also occurring due to             existing facilities with systematic leak detection, immediate treatment
                                                                                                                using increasingly effective sealing techniques, preventive renovation of
                the electricity consumption of buildings and TSO activities.
                                                                                                                the airtightness, treatment of circuit breakers (replacing the whole leaking
                                                                                                                pole) and maintenance professionalisation. RTE is reducing its installed
                This corresponds to indirect emissions produced as a result of upstream and down-
 Scope          stream activities. Scope 3 emissions are an indirect consequence of the activities of
                                                                                                                SF6 mass by building new substations using AIS technology as a priority.

        3
                the company and are caused by sources not owned or controlled by the company.
                For example, for a TSO, indirect emissions are caused by the construction of parts
                of its infrastructure, products or services by other companies. Indirect emissions              Innovative sealing technique for GIS compartment repairs
                from downstream activities occur as a result of waste treatment.
                                                                                                                REE has developed a new methodology to repair SF6 leaks in GIS compart-                        Completed in   2019
TSOs have identified and implemented a wide range of instruments to reduce or mitigate their                    ments, based on flexible sealing systems and clamps tailored to and installed
scope 1, 2 and 3 emissions. This includes, but is not limited to adopting sobriety and efficiency               on each leakage point. This process does not require the dismantling of GIS
measures in their activities and managing the impacts of their value chains and those related to                compartments or final tests and can be applied to compartments built by
existing and future interactions between the grid and connected ecosystems. An overview of the                  different GIS suppliers (traditional methodologies require these and must be
main instruments is provided in the diagrams below, alongside related flagship projects.                        carried out with the supplier's cooperation). The procedure therefore allows le-
                                                                                                                aks to be repaired much more quickly; in turn, this leads to the quantity of SF6
                                                                                                                emitted between the detection of the leak and its repair to be greatly reduced.
     For more information, click on this icon to learn more about each project.

SF6 IN CIRCUIT BREAKERS (SCOPE 1)
                                                                                                                Pilot installation of SF6-free GIS at Station Westerlee
                 SF6 is an inert gas which has a high die-
                 lectric strength and thermal stability and
                 is widely used in circuit breakers. Due
                                                                                                                In line with TenneT’s climate strategy, its goal of becoming climate-neutral by          To be completed in   2023
                                                                                                                2025 and in order to develop sustainable technical solutions, TenneT resolved
                 to its high global warming potential, SF6                                                      a bottleneck in an existing high-voltage substation with an SF6-free GIS installa-                 GWP of used
                 leaks are the main source of a TSO’s di-                                                       tion of 50 kV. The project was a pilot intended to test SF6-free alternatives; the                technology
The role played by electricity in the           How TSOs contribute to
                                                                                                                        Introduction           decarbonisation of the energy system             GHG emission reduction                 Annex

DIRECT EMISSIONS PRODUCED AS A RESULT OF TSO ACTIVITIES (SCOPE 1 & 2)                                                   ELECTRICITY GRID LOSSES (SCOPE 2)

                 As is the case for many businesses, the day-to-day activities of TSOs result in                                       Grid losses are currently the biggest source of TSO emissions. They are an ine-
                 GHG emissions. This mainly includes direct emissions from fossil fuels used                                           vitable consequence of electricity flowing through transmission lines and grid
                 for transport and heating (Scope 1) and indirect emissions, produced as a                                             assets, but their impact on GHG emissions is entirely dependent on the electri-
                 result of buildings consuming electricity (Scope 2).                                                                  city generation mix. For TSOs that purchase the electricity corresponding to
                                                                                                                                       their grid losses, the associated carbon footprint can be reduced through gre-
                 Decarbonisation strategies involve energy sobriety and efficiency measu-
                                                                                                                                       en procurement approaches. For all other TSOs, the main way to reduce the
                 res, direct electrification of consumption and the use of renewable and low
                                                                                                                                       GHG emissions produced by grid losses in the long term is by enabling the in-
                 emission energy sources.
                                                                                                                                       tegration of low-carbon energy sources into the system, while limiting grid loss
                                                                                                                                       increases through efficient grid development and energy efficiency measures.

  Terna E-mob programme                                                                                                                                         EMISSIONS OF GRID LOSSES

                                                                                                                                         In absolute terms (without considering the application of green procurement processes),
  Ongoing                                                                                                                                GHG emissions associated with grid losses are proportional to the overall amount of grid
                                                                                                                                         losses measured by the TSO and to the specific emission factor of the local energy mix.
  616 t CO2/year in reduced emissions                                                                                                    Assuming that European climate policy is progressively implemented over the next few ye-
                                                                                                                                         ars, emissions associated with grid losses will change in line with two contrasting trends.
  Decarbonising TSO activities includes reducing the emissions of
  company cars and vans. This is why Terna is currently running a                                                                        Figure 7 EVOLUTION OF EMISSIONS ASSOCIATED WITH GRID LOSSES
  pilot project aimed at replacing an increasing number of fossil fuel
  cars with electric vehicles over the next two years.

  Remote outdoor lighting in substations

  Completed in   2020
  236 t CO2eq/year in reduced emissions

  Since 2020, the installation and improvement of remote lighting
                                                                                                                                                 2019             Electrification &       Evolution of the         Target year
  control systems has enabled the outdoor lighting of 426 REE sub-                                                                                               grid developments        generation mix           (e.g. 2030)
  stations to be switched off during the night. Thanks to these new
  systems, lighting is switched on only when it is needed, thus redu-
  cing electricity consumption and associated emissions.                                                                                 On the one hand, electrification and grid developments will increase the GHG emis-
                                                                                                                                         sions caused by grid losses, since the amount of electricity flowing into the whole
                                                                                                                                         system and the number of assets required to operate it in a secure way will increase.
                                                                                                                                         On the other hand, the integration of RES and low-carbon generation sources into
  UPS with Fuel Cell technology                                                                                                          the electricity generation mix will: i) reduce emissions by lowering its emission factor;
                                                                                                                                         and ii) lower overall emissions caused by the system due to the electrification of end
                                                                                                                                         demand (not accounted for in grid losses).
  To be completed in   2025
  >160 t CO2eq/year in reduced emissions

  Uninterruptible Power Supply (UPS) secures the availability of critical
  infrastructure in the event of power failure. To ensure functionality, the
  aggregates must be operated several times a year. The aim of one cur-
  rent project is to replace diesel-powered UPS with fuel cell technology
  that obtains its energy from regenerative low-carbon hydrogen. The
  feasibility of the project will be investigated through the running of a
  pilot, which will end in 2025.                                               Source: Thomas Eder / Shutterstock.com

                                                                                                                                                                    DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   12
The role played by electricity in the              How TSOs contribute to
                                                                                                                                       Introduction    decarbonisation of the energy system                GHG emission reduction            Annex

VALUE CHAIN – GRID DEVELOPMENT (SCOPE 3)

         Minimising the environmental footprint of     The Greener Choice                             Greener choice consortium, including:            Sustainable criteria in tenders
         TSOs also involves changes being made
         along the electricity grid value chain. In-
         deed, aside from the GHG emissions re-        Completed in   2020                                                                             To be completed in   2023-2026 (4 projects)
         sulting from grid losses, most GHG emis-
         sions associated with transmission lines
         and grid assets are generated during their
         manufacturing and on-site construction
         phases. The main reduction tools for such     The Greener Choice open letter was produ-                                                       As part of TenneT’s recent tender, launched with
                                                       ced as a result of a collaboration between 7                                                    regard to four Dutch and German offshore platfor-
         emissions involve the introduction of gre-
                                                       TSOs aiming to leverage their central position                                                  ms (Hollandse Kust Noord, West Alpha, West Beta
         en procurement approaches, according          in the energy transition and deliver a common                                                   and BorWin6), TenneT included criteria encouraging
         to which suppliers are chosen based on        message to their suppliers. In the open letter,                                                 suppliers to take steps to reduce their impact on the
         their carbon footprint, commitment to         all suppliers - established and new - were encouraged to move towards the adoption of           environment and climate by using instruments like
         eco-design principles and use of circular     increasingly sustainable activities; TSOs made clear they will take actions in this vein into   ‘raw material passports’, internal CO2 prices, envi-
         economy approaches.                           consideration when selecting partners with whom to work and awarding contracts.                 ronmental cost indicators, CO2 performance ladders and nature inclusive designs.

VALUE CHAIN – CORPORATE ACTIVITIES (SCOPE 3)

         Reducing value chain emissions also           Low emission commuting                                                                          Spare parts via 3D print
         covers corporate activities, particu-
         larly in the areas of mobility and the        Completed in   2018                                                                             To start in   2021
         distribution of purchased goods. Key
         tools falling under the former category       >500 t CO2eq/year in reduced emissions                                                          GWP of used technology = 0
         include choosing low-carbon travelling
         options, promoting the use of public          For staff travelling to its headquarters, Swissgrid                                             To increase the lifetime of equipment and reduce
         transportation and, where possible,           has introduced sustainable commuting practices by                                               GHG emissions associated with the purchasing of
                                                       granting them with easy access to public transport                                              new pieces of equipment, repairing such equipment
         implementing smart working approa-
                                                       and providing them with underground parking facili-                                             (instead of replacing it) is a sound solution. Howe-
         ches. Key reduction tools falling under       ties. The latter includes space for bicycles, charging                                          ver, this is only possible if spare parts are available at
         the latter include the introduction of        stations for electric bikes and additional facilities such                                      short notice. For this reason, APG intends to explo-
         green procurement, circular economy           as checkrooms, showers, rest rooms and a drying                                                 re the possibility of using of 3D printing. It will start
         approaches and employee awareness             room for wet clothes. Swissgrid has also launched a                                             by identifying and testing appropriate use cases in
         campaigns.                                    special app that allows employees to carpool.                                                   cooperation with a 3D printing service provider.

MAINTENANCE (SCOPE 1, 2 & 3)

         Maintenance projects contribute to the        Drones for monitoring vegetation                                                                Detecting anomalies via sound patterns
         reduction of a TSO’s carbon footprint
         by extending the life of network assets,      To be completed in   2021                                                                       Completed in   2020
         thus reducing GHG emissions along their
         whole value chain. Over the last few ye-      300 t CO2eq/year in reduced emissions
         ars, maintenance practices have been
         boosted through digitalisation, as a shi-     A study was conducted in 2021 to assess the impact                                              Unusual sounds are very often an indicator of the im-
         ft towards predictive maintenance has         of using drones coupled with helicopters for monitoring                                         minent failure of grid assets and their components.
                                                       vegetation under overhead lines (compared to using                                              APG uses acoustic sensors to identify and locate the
         been taking place; this involves remotely
                                                       helicopters alone). The results show that employing                                             sources of such unusual noises. To date, APG has
         monitoring the condition of machines          drones that use digital data analysis allows for a 33%                                          implemented four “sound scanners” and has already
         and analysing the data obtained. The          reduction in greenhouse gas emissions (approximately                                            prevented potential damage caused by loosened bol-
         use of digital tools shall be carried out     300 t CO2e), due to a reduction in the use of kerosene.                                         ted connections and failed components. Preventive
         efficiently and they shall be implemented     This gain is mainly due to a sober, efficient and low-car-                                      repair and maintenance increases the life cycle of ap-
         through low-carbon practices.                 bon use of digital technology.                                                                  pliances and prevents serious damage from occurring.

                                                                                                                                                                            DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   13
The role played by electricity in the           How TSOs contribute to
                                                                                                         Introduction         decarbonisation of the energy system             GHG emission reduction               Annex

CONTRIBUTING TO SYSTEM-LEVEL GHG EMISSION REDUCTION

Given the central role that TSOs play in the power sector and their potential to reduce GHG emis-        To tackle this increase in complexity and main-               which is able to industrialise the production of
sions at the level of the energy system, their actions are enabling the energy transition and allowing   tain a reliable and affordable energy supply, new             innovative technologies and meet the demand
Europe to fulfil its Green Deal ambitions. Ensuring security and continuity of supply while enabling     investments and innovative tools are needed.                  for them, and by new approaches for societal
the energy transition are, therefore, the key activities of every TSO.                                   These will need to encompass the complete                     acceptance of new infrastructures and a more
                                                                                                         value chain of TSOs, stretching across each                   flexible use of electricity.
These activities are growing in importance since the landscape of the energy sector is changing at       area of their core business (grid development,
an extraordinary pace. The introduction of an increasing amount of RES into the system and more          asset management, market design and system                    All these tools are necessary for ensuring an
decentralised electricity production is creating many new challenges for TSOs. In the medium-term,       operations) and address both the technologies                 effective transition to a carbon-free European
the distribution of generation across the electricity grid will completely change as injected energy     themselves, but also underlying factors, such                 economy, since they either directly contribu-
will come both from small-scale decentralised solar, wind and biomass generation sources and             as company structures and processes.                          te to RES integration and the electrification of
from large-scale green generation facilities such as offshore and onshore wind farms and solar                                                                         consumption or support their realisation.
plants. As a consequence, the transmission infrastructure and the operation of the system and            Digital technologies will be key for enabling TSOs
markets need to be adapted in order to match this more variable, flexible and smarter system.            to handle the increasingly complex system and                 The following diagrams provide an overview of
Moreover, backbone corridors must be reinforced to transport green energy over long distances.           become more efficient, whilst operating as part               the main tools and flagship projects carried out
                                                                                                         of an interconnected European energy system.                  in these areas.
The increasing fragmentation of the sector, characterised by decentralised energy sources and
the increasing number of market players due to electrification, is making the system increasingly        TSO investments will have to be accompanied                   	For more information, click on this icon to
complex. On the one hand, the system will shift from being organised around a small number of            by a coherent European industrial strategy,                     learn more about each project.
power plants and inelastic demand to one which encompasses a portfolio of small, decentralised
generation sources and flexibility means (such as electric vehicles, batteries and heating systems).
On the other hand, the high presence of variable renewable generation sources will result in daily                                     REDUCED VS AVOIDED EMISSIONS
cycles of oversupply and under-supply of energy compared to load needs. This will make the alre-
ady complex management of evening residual load ramps even harder.                                         Figure 8 EMISSION REDUCTION AND AVOIDANCE

The efficient management of decentralised means will become crucial for guaranteeing the ade-
quacy and flexibility of the network; TSOs will need to be more flexible to keep the system in ba-                                                                      Emission reduction
lance.                                                                                                                                                                  The implemented measure reduces emissions, as
                                                                                                                                                                        can be seen when compared with a condition un-
                                                                                                                                                                        der which the measure has not been implemented.

                                                                                                                                                                        This is the approach used to assess, for exam-
                                                                                                                                                                        ple, the achievement of Science-Based targets.
                                                                                                                 Historical            Target year
                                                                                                                   year               (with measure
                                                                                                                                      implemented)

                                                                                                                                                                                              Emission avoidance
                                                                                                                                                                                              The implemented measure
                                                                                                                                                                                              reduces emissions, as can
                                                                                                                                                                                              be seen when compared
                                                                                                                                                                                              with a forecast condition un-
                                                                                                                                                                                              der which the measure has
                                                                                                                                                                                              not yet been implemented.

                                                                                                                                                                                              This is the approach used
                                                                                                                                                                                              in national and European
                                                                                                                 Historical            Target year                 Target year                development plans to as-
                                                                                                                   year                  (without                 (with measure               sess the benefits of a grid
                                                                                                                                        measure)                  implemented)                development.

                                                                                                                                                   DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   14
The role played by electricity in the           How TSOs contribute to
                                                                                                                            Introduction        decarbonisation of the energy system             GHG emission reduction               Annex

                          Grid development
The development of the electricity transmission grid is one of the main ways to transform the energy system into a carbon-neutral one. Over the last few years, national network development plans developed by TSOs have
become increasingly driven by sustainability. Additional factors such as market efficiency, ensuring the security of the electricity system, ensuring quality of service and establishing an increasingly resilient system (which
is capable of dealing with critical events) are other important drivers. Grid development can have a direct impact on the reduction of system-level GHG emissions when it involves connecting RES to the grid or reducing
RES curtailment. It can also support decarbonisation indirectly by improving the secure operation of the grid when high amounts of RES are present in the system. Creating an integrated European network is one of the
key objectives of the Clean Energy for all Europeans Package and is fundamental for achieving long-term decarbonisation and security of supply targets.

  CROSS-BORDER INTERCONNECTIONS

                  Interconnectors, which are used to
                  increase the transmission capacity         Spain-France submarine interconnection                                                 ALEGrO
                  between two countries, aim to sup-
                  port RES integration, improve security     To be completed in   2026-27                                                           Completed in   2020
                  of supply and boost market efficien-
                                                             1,2 M CO2eq/year in avoided emissions
                  cy in the social interest. They directly
  contribute to reducing RES curtailment (by enabling
                                                             2x1,000 MW underwater and                                                              The ALEGrO high-vol-
  renewable energy surpluses generated in one coun-
                                                             underground HVDC link (±400                                                            tage line is an intercon-
  try to be transported to another). They also indirectly    kV) through the Biscay Gulf,                                                           nector linking Belgium
  enable the secure management of an electrical sy-          between Gatika (Spain) and                                                             to Germany with a tran-
  stem which contains a high volume of RES. Based            Cubnezais (France), almost                                                             smission capacity of
  on the power system needs analysis carried out by          400 km long. It will strengthen                                                        1,000 MW. It is the first
  ENTSO-E as part of its Ten Year Network Development        the interconnection betwe-                                                             HVDC        interconnector
  Plan (TYNPD) in 2020, the 93 GW of cross-border ca-        en Spain and France by al-                                                             that is implemented via
  pacity needed by 2040 will enable the integration of       lowing a greater integration                                                           the novel Evolved Flow
  110 TWh of RES generation (which would otherwise           of renewable energies (7,431                                                           Based approach. The
  have been curtailed) - and avoid 53 Mton of CO2 emis-      GWh/year by 2030), improving                                                           approach allows for an
                                                             security of supply and increa-                                                         optimal utilisation of the
  sions per year.
                                                             sing the efficiency of both sy-                                                        interconnector in the day-ahead market timeframe optimising the entire Central
                                                             stems. The project has been                                                            West European (CWE) region. Furthermore, as a fully controllable DC device, it is
                                                             part of the PCI list since 2013.                                                       able to influence congestions in the European meshed AC grid.
                                                                                                (Source: ENTSO-E)

                                                                                                                                                                     DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   15
The role played by electricity in the               How TSOs contribute to
                                                                                                                     Introduction   decarbonisation of the energy system                 GHG emission reduction            Annex

ONSHORE AND OFFSHORE RES CONNECTION & HYBRID PROJECTS

                   Connecting onshore and offshore RES
                   directly contributes to reductions in   Kriegers Flak Combined Grid Solution                                         North Sea Wind Power Hub                                     NSWPH Consortium, including:
                   system-level emissions by enabling
                   the integration of renewable energy     Completed in   2020                                                          To be completed in   early 2030
into the system.                                           0,2 Mt CO2eq/year in avoided emissions
The benefits of such connections double in the case        The Kriegers Flak Com-                                                       The modular Hub-and-
of hybrid projects, since offshore hybrid assets are       bined Grid Solution (KF                                                      Spoke concept is key to
sea cables that serve as connections to offshore RES       CGS) is the first hybrid                                                     large-scale offshore wind
(typically, offshore wind energy) and interconnectors      project (400 MW in each                                                      energy deployment in the
at the same time.                                          direction) in the Baltic Sea.                                                North Sea, which involves
                                                           Depending on system                                                          a low environmental impact
Hybrid projects allow one or more offshore wind far-       conditions, KF CGS is able                                                   and low costs for society,
ms to be linked to more than one onshore grid.             to transport offshore wind                                                   while maintaining security
                                                           power to the grids in Ger-                                                   of supply. Central to the vi-
                                                           many and Denmark and/                                                        sion is the construction of
                                                           or provide transmission                                                      modular hubs in the North
                                                           capacity for cross-border                                                    Sea with interconnectors to
                                                           electricity trading all in one                                               bordering North Sea coun-
                                                           combined technical facility.                                                 tries and sector coupling through power-to-hydrogen conversion.

                                                           Eurobar                                Eurobar consortium, including:        WindConnector

                                                           To be completed in   2023                                                    To be completed in   2029

                                                           Eurobar aims to support                                                      The multi-purpose intercon-
                                                           Europe and its TSOs in the                                                   nector (MPI) will simultaneou-
                                                           secure and efficient con-                                                    sly connect up to 4 GW of Bri-
                                                           nection of offshore wind                                                     tish and Dutch offshore wind
                                                           farms by striving for stan-                                                  between the British and Dutch
                                                           dardisation of interfaces                                                    electricity systems, providing
                                                           and technology "offshore                                                     an additional 2 GW of intercon-
                                                           grid ready", reducing the                                                    nection capacity between the
                                                           environmental impact as                                                      countries. Therefore, the MPI
                                                           well as interconnecting of-                                                  will enable spare transmission
                                                           fshore wind clusters. The-                                                   capacity to be used to trade
                                                           se measures can be taken                                                     electricity between the coun-
                                                           step-by-step and will be                                                     tries, thereby increasing the
                                                           implemented when econo-                                                      potential utilisation of offshore
                                                           mically sound and techni-                                                    infrastructure and thus mitiga-
                                                           cally needed.                                                                ting the environmental impact
                                                                                                                                        on coastal communities.              (Source: S&P Global Platts)

                                                                                                                                                         DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   16
The role played by electricity in the           How TSOs contribute to
                                                                                                                                 Introduction   decarbonisation of the energy system             GHG emission reduction               Annex

 INTERNAL REINFORCEMENTS

                Internal reinforcements cover a wide
                range of projects such as new lines,      Tyrrhenian Link                                                                           Reinforcement of the Spanish
                switching stations and synchronous                                                                                                  mainland & Balearic Islands link
                compensators which are required           First link to be completed by   2026                                                      To be completed in   2021-26
                to ensure the security and quality of
electricity supply while enabling the decarbonisation     0,3-0,7 Mt CO2eq/year in avoided emissions                                                0,9 Mt CO2eq/year in avoided emissions
of national electricity systems via the integration of
renewables.                                               The project con-                                                                          The reinforcement project
                                                          sists of two sub-                                                                         includes a DC submarine
Internal reinforcement projects often include the ad-     marine       bipolar                                                                      link (2x200 MW capacity),
ditional advantage of reusing existing corridors or in-   HVDC VSC links                                                                            140 MW of batteries as
frastructures.                                            (1000 MW both)                                                                            fully integrated network
                                                          connecting Sardi-                                                                         components, 5 synchro-
                                                          nia with Sicily and                                                                       nous compensators and
                                                          Sicily with the Ita-                                                                      a new transformer. The
                                                          lian mainland. The                                                                        project will allow the sub-
                                                          project allows a                                                                          stitution of a large part of
                                                          substantial integra-                                                                      the diesel & gas power ge-
                                                          tion of renewable                                                                         neration in the Islands by
                                                          energy into the Italian power system (+600 GWh/yr expected in 2030) as well as            renewable (236 GWh/year)
                                                          an important enhancement of the reliability of the power system and the possibility       and efficient combined
                                                          of decommissioning old power plants fed by oil/coal, currently operating, thus            cycle thermal power, thus
                                                          avoiding a substantial amount of pollutant emissions in atmosphere.                       reducing CO2 emissions.

                                                          SuedOstLink                                                                               Almaraz-Guillena corridor

                                                          To be completed in   2025                                                                 Completed in   2014
                                                          0,6 Mt CO2eq/year in avoided emissions                                                    0,6 Mt CO2eq/year in avoided emissions

                                                          The SuedOstLink is a 2GW                                                                  The infrastructure links the
                                                          525kV HVDC transmission                                                                   central and southern areas
                                                          line. It is a joint project                                                               of the Spanish peninsu-
                                                          between      TenneT    and                                                                la by 327 km of electricity
                                                          50 Hertz.                                                                                 lines. It facilitates the eva-
                                                                                                                                                    cuation of new renewable
                                                          The SuedOstLink has been
                                                                                                                                                    generation, continues the
                                                          categorised by the Euro-
                                                                                                                                                    interconnection with Por-
                                                          pean Union as a project of
                                                                                                                                                    tugal and represents a si-
                                                          common interest (PCI), indi-
                                                                                                                                                    gnificant improvement in
                                                          cating it is a key project for
                                                                                                                                                    the guarantee and quality
                                                          achieving EU decarbonisa-
                                                                                                                                                    of the electricity supply in
                                                          tion goals.
                                                                                                                                                    the regions of Extremadura
                                                          The project is a crucial link to enable RES produced in the North of Germany to           and Andalusia.
                                                          be transported to heavy industry located in the South of Germany.

                                                                                                                                                                     DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   17
The role played by electricity in the           How TSOs contribute to
                                                                                                                                     Introduction          decarbonisation of the energy system             GHG emission reduction               Annex

                             System operation and market design
The growing share of fluctuating RES in the electricity mix increases the flexibility and security of the system’s supply needs in daily, weekly, seasonal and annual terms while simultaneously reducing system inertia, which has traditionally
been provided by dispatchable generation power plants. Besides grid developments, managing the grid in a secure way requires the consistent integration of flexibility resources and changes to market mechanisms and regulations.

Market parties require clear long-term market signals to invest in cleaner generation power plants and flexible assets. Fostering cooperation between TSOs and the operators of the distribution grid will also be crucial,
since most decentralised renewables and flexibility resources will be hosted by the latter. TSOs will support and accelerate this transition both in their own countries and across them, by facilitating the development of
more integrated energy markets.

  ACCELERATING THE INTEGRATION OF STORAGE AND DSR

               TSOs actively support the integration of
               flexible resources into the system and as-       Equigy                                                                                         Consumer centricity
               sociated changes to markets and regula-
               tions. Electrical storage systems and de-        Ongoing                                                                                        Ongoing
   mand side response (DSR) are necessary for coping
   with the short-term flexibility requirements of the
   electrical system and (in particular) structural RES
   overgeneration during the central hours of the day           Equigy plays a key role in the ac-                                                             The purpose of the Internet of Ener-
   and the steeper evening residual load ramp.                  celeration of the energy transition                                                            gy ecosystem is to allow players to
                                                                and the integration of the ener-                                                               explore, test and co-build new energy
                                                                gy system. With the European                                                                   services through a consumer-centric
                                                                crowd balancing platform, Equigy                                                               approach. These services will allow
                                                                creates a trusted data exchange                                                                consumers to be active and central
                                                                to enable aggregators to partici-                                                              players on the energy markets of the
                                                                pate with smaller flexibility devi-                                                            future and benefit from the technolo-
                                                                ces, such as home batteries and                                                                gical investments they have made in
                                                                electric vehicles, in electricity ba-                                                          solar panels, heat pumps, boilers or
                                                                lancing markets, turning consumers into prosumers. Owned by leading Europe-                    (car) batteries.
                                                                an transmission system operators, Equigy aims to set cross-industry standards
                                                                throughout Europe, to support a future-proof, reliable and cost-effective power
                                                                system that is independent of fossil fuel-based flexibility sources.

  ENHANCED GRID OPERATION DRIVEN BY DIGITALISATION

                  The digital transformation enabled by
                  the Internet of Things (IoT) is deeply        Life Cycle Analysis of DLR service at RTE                                                      Dynamic Line Rating (DLR)
                  improving TSO grid operation practices.
                  Data-driven algorithms are progressi-
                  vely being integrated into automated
                                                                To be completed in   2021                                                                      To be completed in   2023
   control systems to maximise the availability of grid         290-1500 t CO2eq/year in avoided emissions                                                     1,000-2,000 t CO2eq/year in avoided emissions
   assets (e.g. in Dynamic Linear Rating solutions) and
   minimise RES curtailment (e.g. by optimally managing         The objective of the study is to                                                               By expanding the transmission capa-
   highly congested areas characterised by a presence           quantify the environmental im-                                                                 city, DLR promotes the integration of
   of different renewables and storage resources).              pacts of the DLR service on two                                                                renewable generation. There is a sy-
                                                                existing overhead lines. The resul-                                                            nergy between DLR and wind energy;
                                                                ts show GHG gains linked to sub-                                                               however DLR is also beneficial for any
                                                                stitution of thermal power station                                                             other stochastic renewable energy pro-
                                                                generation by RES generation for                                                               duction. In real-time operations, DLR
                                                                system adequacy. For the 2 lines,                                                              can be used to avoid redispatches whi-
                                                                annual GHG emissions avoidance                                                                 ch will reduce costs and energy losses
                                                                is estimated to be between 290 t                                                               but also any further investment in tran-
                                                                CO2e and 1500 t CO2eq.                                                                         smission network reinforcements.

                                                                                                                                                                                DECARBONISING THE ENERGY SYSTEM - The role of Transmission System Operators   18
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