Power grids: Cross-border lines connect countries

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The transmission of electricity across national borders is gaining in importance worldwide.

(Photo: imago images/UJ Alexander)

Power markets around the world are growing together as power lines connect countries. A market analysis by Germany Trade and Invest (GTAI), the federal government’s foreign trade promotion agency, shows that the number of relevant projects is growing around the world. The investigation is available to the Handelsblatt.

The GTAI experts have examined various interconnection projects in 14 countries, including projects in Ethiopia, Egypt, Chile and India. Interconnectors are cross-border high-voltage lines.

The projects are in different stages of the process and should be seen against the background of the global energy transition: A largely decarbonized power supply system, which is essentially based on the use of renewable energies, requires complex power grid structures. This is because the generation of electricity using wind and sun is volatile, phases with excess electricity are opposed to phases with low generation. The networks have to be adapted to these conditions.

Ideally, both sides benefit when national borders are crossed: the networking of different regions acts like insurance against a power shortage. This increases the probability that the wind will still blow or the sun will shine somewhere in the regions connected by means of an interconnector. At the same time, excess electricity can be distributed and used more widely.

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In this way, the projects advance decarbonization. Not infrequently, they create the connection to clean power generation projects in neighboring countries or even on other continents. Heiko Stumpf, who works for GTAI in Sydney, refers to an ambitious project: “The city-state of Singapore, which wants to bridge 5000 kilometers to Australia in order to generate solar power in the outback, is going particularly far.”

Ideally, both sides benefit

The idea of ​​making clean electricity from North Africa usable for Europe is on a comparable scale: electricity is to flow through the Mediterranean Sea from Egypt to Greece through the planned Euro-Africa interconnector. The interconnector is scheduled to be completed as early as 2023. In addition to the existing connection between Spain and Morocco, this would be the second power line between the two continents in operation.

The connection to Greece is just the beginning for Egypt. In October 2021, Egypt and Saudi Arabia signed construction contracts for a cross-border electricity connection. The first plans were made ten years ago. According to GTAI, the line that has now been contractually agreed should reach its final stage of expansion in 2025. The costs are estimated at 1.6 billion euros.

Greece, in turn, is also involved in the “EuroAsia Interconnector” project. The 1200 km long undersea power cable will connect the power grids of Israel, Cyprus and Greece. The project is funded with EU funds.

Canada and the USA are also increasing the exchange of electricity. The two countries are already connected via 37 transmission lines. However, interest in further connections is high. For example, the Canadian province of Quebec has a high proportion of hydroelectric power.

US electricity suppliers along the east coast therefore purchase electricity from the neighboring country to the north in order to achieve their minimum shares of electricity from renewable sources. Additional lines should contribute to making even greater use of this potential.

Some of the projects around the world are not only relevant to energy and climate policy, but also geopolitical. In March 2022, shortly after the start of the Russian war of aggression in Ukraine, Ukraine and Moldova were connected to the European power grid in the form of an emergency synchronization.

This has made the two countries less dependent on the Russian power supply system. In the future, the Ukrainian and Moldovan grids should be able to fully participate in the European electricity market – and also be able to export their electricity surpluses to neighboring European countries.

The global trend towards greater networking of the electricity markets offers German companies in particular great economic opportunities. Traditionally, companies such as Siemens Energy, but also medium-sized suppliers, have a strong position in power transmission systems.

More: Cold withdrawal of Russian gas – Germany is threatened with an emergency winter

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