The electricity sector around the world is undergoing significant changes, increasingly driven by the decarbonisation agenda. For most countries, however, security of supply remains the number one priority, alongside the need to keep electricity affordable. Interconnectors are uniquely well placed to meet these challenges of sustainability, security and affordability.
Interconnectors are transmission assets that enable the flow of electricity across high voltage cables between different countries or regions. The economic rationale for interconnectors is driven by fundamental differences in the generation mixes between connecting regions leading to systematic electricity price spreads. Interconnectors also help deliver more efficient short-term balancing caused by short-term volatility of wholesale electricity prices, which will become more challenging as less predictable sources of generation, such as wind, come online.
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