Cross-border power trade can support goals such as improved grid resilience, increased energy access, reaching renewable energy targets, and increas-ing economic development. This fact sheet explains how cross-border trade can be a potential technical solution to support resilience.
Depending on the form, cross-border power trade can involve diferent degrees of coordination between system opera-tors and utilities. A fully integrated whole-sale market, for example, might cover a number of interconnected countries served by a single system operator.
A regulatory framework is necessary to ensure all types of cross-border electricity trade between two or more countries are clearly defned, framed, and protected. Europe has experienced an increase in cross-border electricity transmission capacity and fows over the past few decades, partly due to the European internal energy market.
When developing cross-border power trade agreements, particularly with high levels of renewables, fexibility measures can be included to improve overall reliability and resilience of the system.
Box 2 presents a collaborative approach to supporting cross-border power trade in South Asia. The power systems of countries can be interconnected in diferent ways, primarily synchronously or asynchronously (with the link use of power electronics).
The results of scenario 3 show that adding cross-border interconnection capacity allows additional penetration of variable RES into the system and the total RES production reaches about 91.6% of the total. Further, the annual CEEP is reduced by 47% compared to scenario 2.
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