Masdar: Integrated power grids to boost renewable energy use

The integration of energy systems of different regions into a common grid will allow countries to significantly expand the use of renewable energy sources, Abdulla Zayed, Masdar's Director of Business and Project Development, said at the 31st Baku Energy Forum, Report informs.

"There needs to be political consensus among all countries seeking to connect their energy systems. I believe that, as Deputy Energy Minister Orkhan Zeynalov also noted, such an agreement currently exists. We are seeing significant activity in talks conducted by governments and states on interconnections, their importance, as well as ensuring energy security and related issues.

"This is one of the key factors needed to launch a top-down process to ensure the involvement of all stakeholders - from regulators and developers to financial institutions ready to support such initiatives," Zayed said.

According to the Masdar representative, the second fundamentally important element is the commercial structure.

"It is necessary to form a sustainable regulatory framework that is attractive to the banking sector and ensures the operation of this unified grid. After all, interconnectivity covers electricity generation, direct infrastructure, substations, transformer equipment and all related elements.

"The formation of a financially sustainable structure will ensure an increase in the volume of transactions and projects implemented in all participating countries. This will enable developers and investors to attract financing, which will further accelerate both the expansion of generation capacity and the construction of necessary grid infrastructure, including power transmission lines and other facilities," Zayed added.

He noted that the third element is the technical component, especially issues related to electricity transmission, which he described as the most critical aspect.

"Many countries seek to develop renewable energy on a large scale, but they are unable to do so because of the current condition of their energy grids and the variability of renewable energy generation, which they cannot yet manage effectively. The integration of regions into a common energy grid will allow countries to make more active use of renewable energy sources, which have already proven themselves as an economically viable source of electricity. As a result, this will lead to greater affordability of energy in different regions and optimization of the overall grid infrastructure.

"However, to implement this intention, the third most important component is proper planning of cross-border electricity transmission among all participants in the interconnected grid. At the initial stage, countries must develop a clear plan and carry out forecast assessments: exactly what volumes of demand and supply will be formed by each country along different energy corridors," Zayed stressed.