Economic analysis of energy interconnection between Europe and China with 100% renewable energy generation

Abstract

The economic benefits of interconnecting the power grids of Europe (EU) and China (CN) were assessed considering 100% reliance on renewable energy (RE). Four different scenarios, energy storage without interconnection, installing additional renewable energy sources without interconnection, energy storage with interconnection, and installing additional RE sources with interconnection, were considered for the economic benefit analysis. A comparative study of these four scenarios was conducted to identify the best option for achieving hourly power balance. Further, sensitivity analysis was carried out to demonstrate the robustness of the results. Electricity interconnection between CN and EU decreases the annual additional costs by more than 30% when compared to the absence of interconnection, which demonstrates the necessity and benefits of CN-EU electricity interconnection. Keywords: Global Energy Interconnection, Ultra High Voltage Direct Current (UHVDC), High Voltage Direct Current (HVDC), Energy storage, Economic analysis, Energy reserve, Grid construction