A new paper from UK energy think tank Ember says that linking the European and North American electricity grids via a transatlantic power cable could help facilitate the transition to renewable electricity.
The paper examines how transatlantic interconnection could help both North America and Europe to achieve a more secure and efficient transition to renewable electricity, and notes that peak power demand on each side of the Atlantic spikes at different times.
The paper by Ember explores the weather complementarity between the two grids and concludes there is substantial value in interconnection, which can help provide security and efficiency between the energy systems of these two continents.
This connection would allow for the exchange of deep energy flows and enhanced price signals, promoting more efficient market operations across both regions. While this infrastructure might stimulate additional renewable energy investment along its route, this is not a prerequisite but rather a secondary benefit, according to the paper.
It claimed that the primary value lies in integrating the energy markets, optimizing grid resilience, and allowing electricity prices to reflect real-time supply and demand conditions in both regions, smoothing out volatility and improving market efficiency.
Ember describes its paper as "an initial high-level exploration" that "lays the groundwork for a more detailed analysis to follow." It concludes that as "the world builds a future based on clean energy, both North American and European governments should seriously consider this option" and that a transatlantic power cable "would be especially appealing if governments are looking toward a future electric economy, where the electric grid becomes central to the overall energy system - a scenario that is becoming increasingly likely."