Almost a fortieth full member in the Europe of Electricity. At 1er January 2024, the European Association of Electricity Transmission System Operators (Entso-e) will admit as such the Ukrainian company Ukrenergo, which until now had the rank of observer. Before the outbreak of war in February 2022, Ukraine’s network was dependent on Russia’s.
Proof that electric current can be exchanged between producers and suppliers from one country to another, thirty-nine managers from thirty-five States are already cooperating, well beyond the borders of the European Union (EU).
Interconnections, these very high voltage cross-border structures, are expected to play an increasing role. They will especially gain in importance, according to projections, as renewable energies such as wind and solar contribute to the electrification of uses. Two low-carbon energies but intermittent by nature, depending on the wind and the sun. However, it is not yet possible to store electricity in large quantities, whatever its origin – with the notable exception of large hydraulic dams.
“Export the surplus”
On the scale of a national network, when supply exceeds demand, interconnections make it possible to export the surplus. Making it “an economic, climatic and environmental optimization tool for European electricity production”, according to Olivier Houvenagel, director of economics for the manager of the French electricity transmission network, RTE. Or even one “essential technopolitical vector for the energy transition”according to Christophe Bouneau, professor of economic history at Bordeaux-Montaigne University, specialist in this type of exchange.
To market a surplus, there must be demand elsewhere. This probability exists when the production mixes differ on either side of a border. For example, in the German case (still dependent on coal and gas) and French (driven by nuclear and hydraulic power). Differences can also be observed in consumption patterns. “If only for the usual dinner time, which is not the same everywhere”continues Mr. Houvenagel.
Conversely, imports may also be of interest. Especially if renewables or nuclear power drive the price down, to avoid the start-up of a gas or coal power plant. The European electricity market in fact follows an order of economic precedence, the merit order. Wind, solar or run-of-river hydropower are the means with the lowest variable costs. They are injected as a priority. Next comes nuclear power, also low carbon. Conversely, due to the cost of fuel, coal and gas plants are both the most expensive to operate and the most harmful to the climate.
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