What are the economic benefits of transmission system integration?

1 Lower costs

One of the main advantages of transmission system integration is that it can reduce the overall costs of generating and delivering electricity. By connecting different power systems, you can access cheaper or surplus electricity from other regions, optimize the use of existing generation and transmission assets, and avoid or defer costly investments in new infrastructure. For example, interconnecting the European Union's power grids could save up to 40 billion euros per year by 2030, according to a study by the European Commission.

2 Higher revenues

Another benefit of transmission system integration is that it can increase the revenues of power producers and consumers. By expanding the geographic scope of the electricity market, you can access more customers and suppliers, diversify your portfolio, and exploit price differences and arbitrage opportunities. For instance, interconnecting the power grids of India and its neighboring countries could generate up to 12 billion dollars per year in net benefits, according to a study by the World Bank.

3 Greater resilience

A third benefit of transmission system integration is that it can improve the resilience of the power system to shocks and disturbances. By linking different power systems, you can enhance the stability and security of the grid, share reserves and ancillary services, and cope with fluctuations in demand and supply. For example, interconnecting the power grids of North America could help mitigate the impacts of extreme weather events, cyberattacks, or blackouts, according to a report by the North American Electric Reliability Corporation.

6 More benefits

These are some of the economic benefits of transmission system integration for power engineering, but there are also other benefits, such as social, political, and cultural ones. Transmission system integration can enhance regional cooperation, energy security, and access to electricity for millions of people. However, it also faces some challenges, such as technical, regulatory, and institutional barriers. Therefore, it requires careful planning, coordination, and implementation among all the stakeholders involved.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?