In a commentary published on 16 August 2023, four analysts from the International Energy Agency (IEA) stressed the importance of building energy systems that work beyond local and national borders, in Europe and around the world, particularly against a backdrop of rapid growth in renewable energies.
According to IEA analysts, the integration of electricity networks on a regional scale means that a wider range of generation capacity can be used to meet demand and maintain a stable frequency, “decreas[ing] dependence on specific generators and allow[ing] for reserves to be shared”.
In addition, they indicate that access to a wider range of power generation resources can reduce total operating costs. The Agency for the Cooperation of Energy Regulators (ACER) estimates that in Europe, cross-border electricity exchanges generated social benefits of €34 billion in 2021 compared with isolated national markets.
For this integration of cross-border electricity networks to be a success, IEA analysts believe that it is not only technical and institutional requirements that are necessary, such as the creation of harmonised grid codes or the establishment of a regional operator. Political will and leadership are “equally essential”.
In general, memoranda of understanding and joint declarations are drawn up between governments to launch individual projects, such as the Bay of Biscay transmission link between Spain and France.
Although Europe’s electricity grids are already interconnected, the analysts point out that the MoUs demonstrate that these specific projects had political support and were priorities for deepening cross-border links.
They go on to stress the importance of “maintaining a long-term political consensus” and “an open dialogue” with multiple stakeholders, such as regulators and utilities, to ensure the successful completion and smooth operation of projects.
To view the IEA’s commentary: https://aeur.eu/f/8cc (Original version in French by Pauline Denys)