Strategic reserve

Last updated

A strategic reserve is the reserve of a commodity or items that is held back from normal use by governments, organisations, or businesses in pursuance of a particular strategy or to cope with unexpected events. [1]

Contents

A document issued by the US Department of Defense in 2005 defines a strategic reserve as follows: "An external reinforcing force which is not committed in advance to a specific Major Subordinate Command, but which can be deployed to any region for a mission decided at the time by the Major NATO Commander." [2]

There are several national and international projects aiming to preserve the existing natural wealth and diversity in case of mass extinction or a global catastrophe. The Svalbard Global Seed Vault facility, opened in 2008, focuses on collecting duplicate samples of plant seeds from all around the world and currently contains close to 1 million different agricultural seed samples. The final storage capacity is said to be 4.5 million seed samples. [3] [4] Another such institution, Frozen Ark, concentrates on DNA preservation of endangered animal species for generations. [3] [5]

Types of strategic reserve

A strategic reserve can be:

Examples of commodity reserves:

Certain countries create their own unusual strategic reserves of food or commodities they value the most, such as cotton, butter, pork, raisins or even maple syrup. [3]

Energy strategic reserves

"Strategic reserve is a volume-based capacity mechanism in which a centrally established capacity is kept outside of the electricity market and is only used if the market participants do not offer enough generation to meet short-term demand." [6]

Strategic reserve can be also applied as an economic instrument in order to stabilize investments in a specific industry and provide sufficient investment incentive [7] as described in the following example. This time the strategic reserve is defined as a set of power plants or interruptible demand contracts, all controlled by the TSO (transmission system operator), that can be used during temporary lack electricity. The strategic reserve does not necessarily mean a change of available generation capacity, the TSO only takes the control over certain power plants or even averts some power stations from being decommissioned. The activation of such a strategic reserve due to shortage of generation volume at prices above the variable costs of the generation units can lead to a rise of the average electricity price and therefore spark more investments into the generation capacity sector, the main market purpose of the strategic reserve here consists of securing a corresponding investment incentive. [7] One of the main European TSO's is a Belgian company Elia, that operates in Belgium and Germany. [8] [9]

See also

Related Research Articles

An electricity market is a system that enables the exchange of electrical energy, through an electrical grid. Historically, electricity has been primarily sold by companies that operate electric generators, and purchased by consumers or electricity retailers.

<span class="mw-page-title-main">Svalbard Global Seed Vault</span> Globally accessible seed bank on Spitsbergen, Svalbard, Norway

The Svalbard Global Seed Vault is a secure backup facility for the world's crop diversity on the Norwegian island of Spitsbergen in the remote Arctic Svalbard archipelago. The Seed Vault provides long-term storage for duplicates of seeds from around the world, conserved in gene banks. This provides security of the world's food supply against the loss of seeds in genebanks due to mismanagement, accident, equipment failures, funding cuts, war, sabotage, disease, and natural disasters. The Seed Vault is managed under terms spelled out in a tripartite agreement among the Norwegian government, the Crop Trust, and the Nordic Genetic Resource Center (NordGen).

<span class="mw-page-title-main">Energy policy of the United States</span>

The energy policy of the United States is determined by federal, state, and local entities. It addresses issues of energy production, distribution, consumption, and modes of use, such as building codes, mileage standards, and commuting policies. Energy policy may be addressed via legislation, regulation, court decisions, public participation, and other techniques.

<span class="mw-page-title-main">Energy security</span> National security considerations of energy availability

Energy security is the association between national security and the availability of natural resources for energy consumption. Access to cheaper energy has become essential to the functioning of modern economies. However, the uneven distribution of energy supplies among countries has led to significant vulnerabilities. International energy relations have contributed to the globalization of the world leading to energy security and energy vulnerability at the same time.

<span class="mw-page-title-main">Energy in Brazil</span>

Brazil is the 7th largest energy consumer in the world and the largest in South America. At the same time, it is an important oil and gas producer in the region and the world's second largest ethanol fuel producer. The government agencies responsible for energy policy are the Ministry of Mines and Energy (MME), the National Council for Energy Policy (CNPE), the National Agency of Petroleum, Natural Gas and Biofuels (ANP) and the National Agency of Electricity (ANEEL). State-owned companies Petrobras and Eletrobras are the major players in Brazil's energy sector, as well as Latin America's.

<span class="mw-page-title-main">Energy in Uganda</span>

Burning of renewable resources provides approximately 90 percent of the energy in Uganda, though the government is attempting to become energy self-sufficient. While much of the hydroelectric potential of the country is untapped, the government decision to expedite the creation of domestic petroleum capacity coupled with the discovery of large petroleum reserves holds the promise of a significant change in Uganda's status as an energy-importing country.

Energy in Kazakhstan describes energy and electricity production, consumption and import in Kazakhstan and the politics of Kazakhstan related to energy.

Availability Based Tariff (ABT) is a frequency based pricing mechanism applicable in India for unscheduled electric power transactions. The ABT falls under electricity market mechanisms to charge and regulate power to achieve short term and long term network stability as well as incentives and dis-incentives to grid participants against deviations in committed supplies as the case may be.

<span class="mw-page-title-main">Electricity sector in Ghana</span>

Ghana generates electric power from hydropower, fossil-fuel, and renewable energy sources such as wind and solar energy. Electricity generation is one of the key factors in order to achieve the development of the Ghanaian national economy, with aggressive and rapid industrialization; Ghana's national electric energy consumption was 265 kilowatt hours per each one in 2009.

<span class="mw-page-title-main">Electricity sector in China</span>

China is the world's largest electricity producer, having overtaken the United States in 2011 after rapid growth since the early 1990s. In 2021, China produced 8.5 petawatt-hour (PWh) of electricity, approximately 30% of the world's electricity production.

<span class="mw-page-title-main">Energy in Saudi Arabia</span>

EnergyinSaudi Arabia involves petroleum and natural gas production, consumption, and exports, and electricity production. Saudi Arabia is the world's leading oil producer and exporter. Saudi Arabia's economy is petroleum-based; oil accounts for 90% of the country's exports and nearly 75% of government revenue. The oil industry produces about 45% of Saudi Arabia's gross domestic product, against 40% from the private sector. Saudi Arabia has per capita GDP of $20,700. The economy is still very dependent on oil despite diversification, in particular in the petrochemical sector.

<span class="mw-page-title-main">Energy policy of Malaysia</span>

The energy policy of Malaysia is determined by the Malaysian Government, which address issues of energy production, distribution, and consumption. The Department of Electricity and Gas Supply acts as the regulator while other players in the energy sector include energy supply and service companies, research and development institutions and consumers. Government-linked companies Petronas and Tenaga Nasional Berhad are major players in Malaysia's energy sector.

Two-thirds of energy in Azerbaijan comes from fossil gas and almost a third from oil. Azerbaijan is a major producer of oil and gas, much of which is exported. Most electricity is generated by gas-fired power plants. Energy in the country is produced using all types of sources, including fuel, renewable energy, water energy, electrical and heat energy.

<span class="mw-page-title-main">Quebec Maple Syrup Producers</span> Canadian agricultural cartel

Quebec Maple Syrup Producers is a federated organization that regulates the production and marketing of maple syrup from Quebec. It was known as the Federation of Quebec Maple Syrup Producers until 2018. As of 2011, the FPAQ produced 94% of Canadian maple syrup and 77% of the world's supply.

Energy in Algeria encompasses the production, consumption, and import of energy. As of 2009, the primary energy use in Algeria was 462 TWh, with a per capita consumption of 13 TWh. Algeria is a significant producer and exporter of oil and gas and has been a member of the Organization of the Petroleum Exporting Countries (OPEC) since 1969. It also participates in the OPEC+ agreement, collaborating with non-OPEC oil-producing nations. Historically, the country has relied heavily on fossil fuels, which are heavily subsidized and constitute the majority of its energy consumption. In response to global energy trends, Algeria updated its Renewable Energy and Energy Efficiency Development Plan in 2015, aiming for significant advancements by 2030. This plan promotes the deployment of large-scale renewable technologies, such as solar photovoltaic systems and onshore wind installations, supported by various incentive measures.

Energy in Iraq plays a crucial role in both the national economy and the global energy markets due to the country's vast oil reserves and significant status within the Organization of the Petroleum Exporting Countries (OPEC).

<span class="mw-page-title-main">Wind power in Kenya</span>

Despite its high potential for wind energy generation, wind power in Kenya currently contributes only about 16 percent of the country's total electrical power. However, its share in energy production is increasing. Kenya Vision 2030 aims to generate 2,036 MW of wind power by 2030. To accomplish this goal, Kenya is developing numerous wind power generation centers and continues to rely on the nation's three major wind farms: the Lake Turkana Wind Power Station, the Kipeto Wind Power Station, and the Ngong Hills Wind Farm. While these wind power stations are beneficial to help offset fossil fuel usage and increase overall energy supply reliability in Kenya, project developments have also negatively impacted some indigenous communities and the parts of the environment surrounding the wind farms.

<span class="mw-page-title-main">Renewable energy in Kenya</span>

Most of Kenya's electricity is generated by renewable energy sources. Access to reliable, affordable, and sustainable energy is one of the 17 main goals of the United Nations’ Sustainable Development Goals. Development of the energy sector is also critical to help Kenya achieve the goals in Kenya Vision 2030 to become a newly industrializing, middle-income country. With an installed power capacity of 2,819 MW, Kenya currently generates 826 MW hydroelectric power, 828 geothermal power, 749 MW thermal power, 331 MW wind power, and the rest from solar and biomass sources. Kenya is the largest geothermal energy producer in Africa and also has the largest wind farm on the continent. In March 2011, Kenya opened Africa's first carbon exchange to promote investments in renewable energy projects. Kenya has also been selected as a pilot country under the Scaling-Up Renewable Energy Programmes in Low Income Countries Programme to increase deployment of renewable energy solutions in low-income countries. Despite significant strides in renewable energy development, about a quarter of the Kenyan population still lacks access to electricity, necessitating policy changes to diversify the energy generation mix and promote public-private partnerships for financing renewable energy projects.

The petroleum industry in India dates back to 1889 when the first oil deposits in the country were discovered near the town of Digboi in the state of Assam. The natural gas industry in India began in the 1960s with the discovery of gas fields in Assam and Maharashtra. As on 31 March 2018, India had estimated crude oil reserves of 594.49 million metric tonnes (Mt) and natural gas reserves of 1339.57 billion cubic metres of natural gas (BCM).

The Great Canadian Maple Syrup Heist was the theft over several months in 2011 and 2012 of nearly 3,000 tonnes of maple syrup, valued at C$18.7 million from a storage facility in Quebec. The facility was operated by the Federation of Quebec Maple Syrup Producers which represents 77 percent of the global maple syrup supply.

References

  1. ↑ "What does strategic reserve mean?". www.definitions.net. Retrieved 2020-04-24.
  2. ↑ "strategic reserve." Dictionary of Military and Associated Terms. 2005. US Department of Defense 24 Apr. 2020 https://www.thefreedictionary.com/strategic+reserve
  3. 1 2 3 "15 Strategic Reserves of Unusual Products". www.mentalfloss.com. 2016-10-15. Retrieved 2020-04-24.
  4. ↑ "Svalbard Global Seed Vault", Wikipedia, 2020-04-17, retrieved 2020-04-24
  5. ↑ "Frozen Ark", Wikipedia, 2020-02-09, retrieved 2020-04-24
  6. ↑ "Capacity mechanisms for electricity" (PDF). www.europarl.europa.eu.
  7. 1 2 Bhagwat, Pradyumna C.; Richstein, Jörn C.; Chappin, Emile J. L.; de Vries, Laurens J. (2016-04-01). "The effectiveness of a strategic reserve in the presence of a high portfolio share of renewable energy sources". Utilities Policy. 39: 13–28. Bibcode:2016UtPol..39...13B. doi: 10.1016/j.jup.2016.01.006 . ISSN   0957-1787.
  8. ↑ "About Elia". www.elia.be. Retrieved 2020-04-24.
  9. ↑ "Elia System Operator", Wikipedia, 2020-01-01, retrieved 2020-04-24
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.