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Solidarity measures: Assessment of strategic gas storage on EU regional risk groups natural gas supply resilience

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  • Sesini, Marzia
  • Giarola, Sara
  • Hawkes, Adam D.

Abstract

This paper focuses on strategic storage as a solidarity measure in response to short-term “high-impact, low-probability” (HILP) disruptions in the European Union (EU) gas supply from major suppliers (i.e., Ukraine, Russia, Norway, and North Africa), assuming its implementation in selected Member States. A two-stage stochastic cost minimization gas transport model is used to evaluate the impact of HILP events on the level of demand curtailment, survival time, and the natural gas supply mix of EU regional risk group. Results show that geographic proximity alone, without solidarity measures, is inadequate in providing system resilience. In contrast, solidarity measures lead to a longer survival time for regional risk groups (14 days) and to a reduction in system (15%) and LNG (70%) costs relative to a base scenario with no strategic storage. The analysis stresses the value of the coordinated use of strategic storage in balancing the natural gas network during emergencies, and provides further evidence supporting the EU legislative path towards an Energy Union.

Suggested Citation

  • Sesini, Marzia & Giarola, Sara & Hawkes, Adam D., 2022. "Solidarity measures: Assessment of strategic gas storage on EU regional risk groups natural gas supply resilience," Applied Energy, Elsevier, vol. 308(C).
    • Handle: RePEc:eee:appene:v:308:y:2022:i:c:s0306261921016020
    DOI: 10.1016/j.apenergy.2021.118356
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