China Is Building A Supergrid – And So Should We

In 2021, a severe snowstorm hit Texas. When it did, the state’s isolated grid, lacking the benefits of a supergrid to access surplus power from neighboring regions, left 4.5 million homes and businesses without electricity.

To understand why, one has to know that the U.S. electrical grid comprises three major interconnections: the Eastern Interconnection, the Western Interconnection, and the independent Texas Interconnection. Local grids within these zones are connected, but links between the three major zones are minimal. Reducing efficient use of energy and leaving grids vulnerable to outages.

However, the growing number of extreme weather events is just one of many reasons highlighting the need for a Supergrid.

A Supergrid Connecting Continents
Using novel grid technologies for long-distance bulk power transmission, a Supergrid can connect the most optimal large-scale renewable energy sources to major demand centres and enable more efficient energy trading. Overcoming the limitations of existing infrastructure and potentially linking continents, the idea is based on two key facts.

First, the ongoing shift to decentralized, renewable energy sources has moved production away from demand centers to regions where geography and weather allow efficient generation. Second, renewables often work symbiotically. Periods of high wind generation, for instance, tend to be less productive for photovoltaics, and vice versa. The assumption is that affordable renewable power will always be available somewhere, making electricity transport the key challenge.

China Rapidly Builds The World’s Largest Supergrid
Driven by its goal of carbon neutrality by 2060, China is moving fast to build the world’s largest Supergrid. Using ultra-high voltage power lines operating at 1.1 million volts, this technology transmits electricity generated from renewable sources, such as wind farms in central Mongolia or hydropower in the southwest, to densely populated areas. Interesting sidenote: these UHV lines are predominantly leveraging new Direct Current technology `Made in Europe’. In 2024, over 30 UHV projects have been added, connecting entire regions like Wuhan and Nanchang.

But China’s vision doesn’t stop at its borders, as it plans to extend the grid to other Northeast Asian countries including Japan, Korea or Russia. Prioritizing the massive economic, ecological and geostrategic upsides, China has downplayed issues like environmental impact, land acquisition, and struggles with integrating renewables.

What About A Supergrid In The U.S. And Europe?
Such challenges would hinder the development of a Supergrid in Europe and the US – two regions that are currently relying on a network of individual and partially connected grids.

This has been sufficient to provide widespread electricity supply. So far. But a key weakness lies in the interconnections. They lack the scale, capacity, and range needed for unrestricted bulk power transfers. In the era of intermittent renewables, this doesn’t only put our energy security risk. It also exposes us to enormous price volatility.

One of many examples occurred on 12 September 2024, at 7 p.m. CET. Norway’s day-ahead electricity price was €5/MWh, while in Germany it was €300/MWh. This example further illustrates the need for a Supergrid, which would help mitigate such price disparities by making different resources in the grid available.

Luckily, despite the environmental challenges, both regions offer a compelling case for this solution. This is due to their integrated single market with free movement of goods, services, capital, and labour, as well as their strong regulatory cohesion and ambitious net-zero targets. Moreover, Europe has put in place a strong political framework for cross-national energy collaboration.

Concrete Supergrid Initiatives Are Underway, But…
Initiatives are underway on both sides of the Atlantic, but compared to China, they are infants.

Launched in November 2017, the North American Supergrid initiative aims to build a grid, largely underground, using high-voltage direct current (HVDC) across the U.S., Canada, and Mexico. Studies like The North American Supergrid the Harvard China Project suggest the grid could reduce power sector emissions by up to 80% while boosting energy market efficiency and resilience. However, the project has been facing challenges, including permitting, high costs, and opposition from local communities.

More recently, the U.S. Department of Energy called for additional interregional and cross-interconnection capacity to make US grids fit for the 21st century.

And in Europe, grid operators are obliged to achieve 70% cross-zonal capacity by 2025, with varying success. One lighthouse project is NordLink, which connects Norway to northern Germany. Other projects to build HVDC power lines are still in planning or early construction phases, such as SuedLink.

The Costs Of A Supergrid Will Be Massive, The Benefits Even Greater
One of the biggest barriers to building a Supergrid will be cost. A new Rystad Energy research predicts that limiting global warming to 1.8°C above pre-industrial levels will require approximately US$3.1 trillion of grid infrastructure investments globally by 2030.

One potential solution is innovative technologies, such as a superconducting cable systems. Able to transmit ten times more power, it requires significantly less space and raw materials than traditional copper or aluminium cables.

Although the issue of funding for grid development will persist, the benefits will far outweigh the cost. For example, greater electricity market integration and cross-border trade over the past decade have already brought EU-wide advantages, estimated at around €34 billion annually.

Same in the U.S. where the DOE estimates that accelerated transmission expansion would lead to cost savings of $270–490 billion through 2050. For every investment dollar spent in enhanced transmission, approximately $1.60 – $1.80 would be saved.

The Lame Duck Of the Energy Transition?
Grids are often seen as the “lame duck” of the energy transition. Wrongfully!

With sound environmental considerations, an overhaul of our grid infrastructure is imperative for decarbonizing and strengthening our industrial base. It will preserve our economic prosperity and counter the ongoing socioeconomic divide in many of our Western societies.

It is high time for a shift in policy and perception, putting energy demand, supply, transmission, and the development of a supergrid at eye level.

Source: forbes.com