Strategic natural gas storage coordination among EU member states in response to disruption in the trans Austria gas pipeline: A stochastic approach to solidarity

Marzia Sesini, Sara Giarola and Adam D. Hawkes

Energy, 2021, vol. 235, issue C

Abstract: The 2019 EU energy security agenda has led to the concept of solidarity: a coordinated response of Member States to “high-impact, low-probability” events jeopardizing the EU energy supply. At the core of this paper is a modeling analysis of storage as a non-market-based solidarity measure (the so-called strategic storage) considering whether it could be economically desirable to secure gas supply in case of disruption to the EU network. A two-stage stochastic cost minimization gas transport model was developed to study the short-term resilience of the network to supply shocks, such as a natural gas pipeline rupture, and the cost effective system response, in terms of transmission of gas flows, capacity use, and storage utilization in an interconnected gas system, taken the EU as a reference. Relative to a base scenario with no strategic storage, results show that gas import loss up to 80% on multiple different pipelines could lead to a +76% in total costs when no coordinated strategic storage is in place, compared with a −30% in total cost and a −60% in liquefied natural gas cost, when in use, emphasizing the cost-effectiveness achieved with strategic storage in securing energy to the system in emergency.

Keywords: Natural gas; 2-Stage stochastic optimization; Strategic gas storage; Gas infrastructure; EU solidarity (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (9)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:235:y:2021:i:c:s0360544221016741

DOI: 10.1016/j.energy.2021.121426

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