A fully interconnected European energy transmission system, known as the Supergrid, could potentially reduce electricity costs by up to 48 percent. Recent years have seen a significant rise in electricity prices across Europe, including Germany. However, a study conducted by the University College Dublin (UCD) suggests that a pan-European energy transmission model could significantly reduce energy costs. The research team, led by Andrew Keane, a professor at the UCD School of Electrical and Electronic Engineering and director of the UCD Energy Institutes, found that a fully interconnected European energy transmission system could reduce electricity costs by almost a third (32 percent). In the best-case scenario, electricity costs could be reduced by almost half (48 percent).
According to Keane, the current transmission system is not suitable for Europe’s energy future. The inadequacies of the current system have been known for years but have been tolerated. The need to keep the lights on and the requirements of the energy transition make it clear that a more advanced concept for transmission is necessary. The scientists believe that the cost reduction of 32 percent could primarily be achieved through the expansion of European electricity flows. If electricity could be traded more efficiently within Europe, renewable energy sources would no longer need to be built in close proximity to consumers. Instead, optimal locations with better conditions could be chosen, leading to an increase in electricity generation and a decrease in electricity prices.
The best-case scenario, with a cost reduction of 48 percent, assumes that electricity flows between countries can occur without any restrictions. Both scenarios require a significant increase in transmission capacity. However, the necessary investments would be insignificant compared to the potential cost savings. The study also shows that without higher infrastructure investments in Europe, there could be load shedding, generation restrictions, and higher emissions in some regions, leading to further investments in network storage facilities.
