ABSTRACT
Cross-border energy cooperation and trade involves two or more states, and is significant in developing a set of framework conditions in support of energy security. The climate benefits of cross-border energy trade are due to the flexibility of large-sized energy systems that can integrate higher shares of modern renewable energy sources such as wind, solar, and biomass. This is because, with larger energy supply systems, there is greater resilience in reducing the vulnerabilities underlying changes in electricity demand. Multiple models of integrated energy systems that have demonstrated positive economic, environmental, and social impacts and experiences in renewable energy system integration exist across the world. Cross-border energy trade and renewable energy integration start with the development of grid interconnections. Once a policy decision has been made to maximize renewable power in cross-border trade, it is the governing institutions that will determine how effective it will be in achieving the benefits in time.
