The energy sector constitutes a major economic activity for most countries in SE Europe with a significant contribution to infrastructure investment and market activity. Even more important is the geopolitical role often associated with energy issues as they normally involve bilateral or even trilateral cooperation
The energy sector constitutes a major economic activity for most countries in SE Europe with a significant contribution to infrastructure investment and market activity. Even more important is the geopolitical role often associated with energy issues as they normally involve bilateral or even trilateral cooperation. A number of major cross-border energy projects are currently under development in the region, including gas and electricity interconnections, but also some very large projects on renewable energy (e.g. wind farms, photovoltaic plants, geothermal plants, biomass units, etc.) and large-scale energy efficiency interventions, especially in the building sector.
As renewable electricity production is growing, it is becoming increasingly clear that the SE European region is in need of more and better electricity interconnections, something that is especially visible in island regions, such as Greece and Cyprus. Advancing international electricity interconnections especially between Italy and Western Balkans and between mainland Greece and the Israel-Cyprus-Crete axis is becoming a priority in view of the fast-advancing electricity market integration in the region.
IENE’s latest Monthly Analysis, which is available here, focuses on the latest developments concerning the ongoing and planned electricity interconnections in the wider SE European region, highlighting their importance, in parallel with the increasing RES penetration, for achieving the goal of an integrated regional market.
As electricity interconnections increase in SE Europe, it is estimated that RES penetration and hence energy storage needs will rise. Combining interconnections with other technological innovations, such as creating an electricity highway and linking them to energy storage projects, such as pumped hydro and batteries and further investment in RES in the region, would allow for optimal trade in energy across the European system, given the time differences between countries.
Completing the integration of electricity networks in SE Europe will require both sufficient long-term electricity storage projects and adequate cross-border and internal electricity interconnections. Of great significance are the developments regarding the electricity interconnections of the islands with the mainland grid, such as in Greece, and improved cross-border interconnections that will enable the national electricity transmission system to cover the requirements of the new targets for RES penetration and the incorporation of energy storage systems by 2030.
