Economic and Financial Impacts of Grid Interconnections

Overview

"Arguably the primary reason for developing an electricity grid interconnection between countries is to reduce the overall combined economic costs of supplying electricity services in the interconnected countries - at least relative to non-interconnected systems. That is, the overall costs of providing electricity, and possibly even the per-unit costs of providing electrical energy and power, may well rise when an interconnection is developed - especially in developing countries where the overall demand for energy services from electricity is rising fast - but the use of an interconnection allows more efficient use of resources in each of the interconnected countries, resulting in costs that are (in theory) lower than they would have been in the absence of the interconnection."

Further Information

• Publication of the UN - energy chapter 3
• Grid Portal on energypedia
  
• Financing and Funding Portal on energypedia