The latest report, "Supporting the Renewable Electricity Transition through Trade: Unlocking Re-Globalization Opportunities via Interconnection," highlights the untapped potential of cross-border electricity trade in advancing renewable energy goals. Currently, less than 3% of globally generated electricity is traded across borders, with a value of approximately US$ 132 billion in 2023, as per UN Comtrade statistics.
WMO Secretary General Celeste Saulo and WTO Director-General Ngozi Okonjo-Iweala emphasize in the report's foreword that "cross-border trade in renewable electricity can help even out spatial and temporal mismatches in energy supply and demand." They assert its crucial role in enhancing national power grid efficiency while maintaining supply security.
The report likens cross-border electricity interconnector cables to global networks such as shipping lanes and internet cables, which facilitate economic movement. However, developing new interconnection projects involves lengthy planning and approval processes that can span 10 to 15 years. The report suggests improving access to finance, addressing supply chain delays for critical components, and increasing transparency in project approvals to unlock trade opportunities.
By examining regional differences in solar, wind, and water resources, the report advocates for leveraging countries' comparative advantages to lower transition costs to low-carbon energy. This approach could also enhance participation by developing economies in global trade.
The WTO is positioned to address inefficiencies hindering interconnector projects through agreements and cooperative approaches aimed at attracting investment for renewable energy infrastructure. The expansion of overland and undersea cable networks could provide new trade avenues for least-developed countries already exporting renewable electricity.
A comparison is drawn with the extensive network of submarine telecommunications cables supporting the internet today, illustrating the potential scale of a global electricity grid infrastructure.
The full report is available online along with an infographic summary.