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Part of the book series: European Yearbook of International Economic Law ((EYIELMONO,volume 25))

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Abstract

Electricity transmission was confined to small geographical areas for decades and was widely regarded as a local source of energy. This chapter illustrates how this precept has started to change and how new technologies, political integration initiatives and renewable energies spur cross-border exchanges of electricity. The chapter takes a close look at the regional electricity markets currently emerging in Europe, Africa and Latin America and the electricity trade relationships between Canada, the US and Mexico. It also discusses the prospects of a truly global interconnection of electricity grids.

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Notes

  1. 1.

    Wälde and Gunst (2004), p. 180.

  2. 2.

    Verneyre (2004), p. 50.

  3. 3.

    Schwab (2015), p. 37.

  4. 4.

    Verneyre (2004), p. 50.

  5. 5.

    Ibid.

  6. 6.

    Agora Energiewende (2015), p. 8.

  7. 7.

    Ibid, at 6.

  8. 8.

    Most notably, each region within Europe has its annual peak load at different times of the day and year. See ibid.

  9. 9.

    Ferrero (2012), p. 778.

  10. 10.

    Hooper and Medvedev (2009), p. 25.

  11. 11.

    Cain and Lesser (2007).

  12. 12.

    Wälde and Gunst (2004), p. 180.

  13. 13.

    Agora Energiewende (2015), p. 33.

  14. 14.

    Pollitt and McKenna (2014).

  15. 15.

    Hooper and Medvedev (2009), p. 25, citing Amundsen et al. (1998).

  16. 16.

    Cohen (2003), p. 7.

  17. 17.

    Booz & Company (2013), p. 89.

  18. 18.

    Ibid, at 90.

  19. 19.

    Ibid, at 3.

  20. 20.

    International Electrotechnical Commission (2016), p. 18.

  21. 21.

    Agora Energiewende (2015), p. 28.

  22. 22.

    Booz & Company (2013), p. 13.

  23. 23.

    Agora Energiewende (2015), p. 18.

  24. 24.

    Hooper and Medvedev (2009), p. 26.

  25. 25.

    World Bank (2010), p. 31.

  26. 26.

    International Energy Agency (2020), p. 38.

  27. 27.

    Ibid.

  28. 28.

    For the general goal see European Council (Rhodes, 2 and 3 December 1988), Presidency Conclusions, p. 2 http://www.europarl.europa.eu/summits/rhodes/rh1_en.pdf.

  29. 29.

    For a detailed historical account see Lagendijk (2008).

  30. 30.

    De Montravel (2004), p. 24.

  31. 31.

    A synchronous grid comprising most of continental Europe (previously called UCTE) existed alongside a Scandinavian synchronous grid (NORDEL) comprising Finland, Norway, Sweden and some Danish territories. Moreover, the UK (UKTSOA) and Ireland (ATSOI) each operated their own synchronous grid. In Eastern Europe, the former CIS countries operated a wide area synchronous transmission grid called Integrated Power System (IPS) encompassing today’s EU Member States Lithuania, Latvia and Estonia.

  32. 32.

    De Montravel (2004), p. 24.

  33. 33.

    Ibid, at 25.

  34. 34.

    The operational tasks of UCPTE (which was renamed UCTE in 1999) were taken over by the European Network of Transmission System Operators for electricity (ENTSO-E) in 2009.

  35. 35.

    The TSOs from Lithuania, Latvia and Estonia submitted an application in September 2018 for joining the Continental Europe Synchronous Area by 2025. The request is now being considered within ENTSO-E. ENTSO-E, Annual Work Programme 2019 (January 2019) 30 https://docstore.entsoe.eu/Documents/Publications/ENTSO-E%20general%20publications/AWP_2019.pdf.

  36. 36.

    L’Abbate et al. (2014), p. 226.

  37. 37.

    International Energy Agency (2014), p. 10.

  38. 38.

    European Commission, ‘Achieving the 10% electricity interconnection target, making Europe's electricity grid fit for 2020’ (Communication), COM (2015) 82 final.

  39. 39.

    ENTSO-E, Ten-Year Network Development Plan (2020) https://tyndp.entsoe.eu/.

  40. 40.

    European Commission, ‘Energy Infrastructure: Priorities for 2020 and Beyond – A Blueprint for an Integrated European Energy Network’ (Communication), COM (2010) 0677 final, 5.

  41. 41.

    European Council (Barcelona, 15 and 16 March 2002), Presidency Conclusions, 15 (‘In the field of energy, the EU Council (…) urges the Council and the EU Parliament to adopt as early as possible in 2002 the pending proposals for the final stage of the market opening of electricity and gas, including (…) the target for Member states of a level of electricity interconnections equivalent to at least 10% of their installed production capacity by 2005’). See also European Commission, ‘Achieving the 10% electricity interconnection target - Making Europe's electricity grid fit for 2020’ (Communication) COM (2015) 82 final.

  42. 42.

    Article 17 of Regulation (EU) 347/2013 of the European Parliament and of the Council on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 [2013] OJ L115/39, 58.

  43. 43.

    Regulation (EU) 1316/2013 of the European Parliament and the Council establishing the Connecting Europe Facility, amending Regulation (EU) No 913/2010 and repealing Regulations (EC) No 680/2007 and (EC) No 67/2010 [2013] OJ L 348/129.

  44. 44.

    Annex I of Regulation (EU) 347/2013 of the European Parliament and of the Council on guidelines for trans-European energy infrastructure and repealing Decision No 1364/2006/EC and amending Regulations (EC) No 713/2009, (EC) No 714/2009 and (EC) No 715/2009 [2013] OJ L115/39, 62.

  45. 45.

    The case is discussed below in Sect. 5.1.2, p. 91.

  46. 46.

    Meeus et al. (2005), p. 26.

  47. 47.

    See below in Sect. 5.2.4, pp. 98 et seq. See also Meeus et al. (2005), pp. 26–27.

  48. 48.

    Cf. Article 2 (1) c of Council Directive (EEC) on the transit of electricity through transmission grids [1990] OJ L313/30, 31 (‘The Transit Directive’). As will be elaborated further below, this definition does not correspond to the general understanding of ‘transit’ in international economic law which requires the crossing of two borders or at least the crossing of one and the same border twice. See below in Chap. 12, pp. 197 et seq.

  49. 49.

    Art. 3 of the EEC Transit Directive (n 223).

  50. 50.

    Directive 96/92/EC of the European Parliament and of the Council concerning common rules for the internal market in electricity (19 December 1996) OJ 1997/L 27/20.

  51. 51.

    Directive 98/30/EC of the European Parliament and of the Council concerning common rules for the internal market in natural gas (22 June 1998) OJ 1998/L 204/1.

  52. 52.

    Directive 2003/54/EC of the European Parliament and of the Council concerning common rules for the internal market in electricity and repealing Directive 96/92/EC (26 June 2003) OJ 2003/L 176/37.

  53. 53.

    Directive 2003/55/EC of the European Parliament and of the Council concerning common rules for the internal market in natural gas and repealing Directive 98/30/EC (26 June 2003) OJ 2003/L 176/57.

  54. 54.

    Directive 2009/72/EC of the European Parliament and of the Council concerning common rules for the internal market in electricity and repealing Directive 2003/54/EC (13 July 2009) OJ 2009/L 211/55; Directive 2009/73/EC of the European Parliament and of the Council concerning common rules for the internal market in natural gas and repealing Directive 2003/55/EC (13 July 2009) OJ 2009/L 211/94. On the unbundling regime see Dralle (2018).

  55. 55.

    For an explanation of the TPA concept see above in Sect. 2.2.4, pp. 31 et seq. See also Meeus et al. (2005), p. 29.

  56. 56.

    Regulation (EU) 2019/943 of the European Parliament and of the Council of 5 June 2019 on the internal market for electricity (5 June 2019) OJ 2019/L 158/54.

  57. 57.

    Directive (EU) 2019/944 of the European Parliament and of the Council of 5 June 2019 on common rules for the internal market for electricity and amending Directive 2012/27/EU (5 June 2019) OJ 2019/L 158/125.

  58. 58.

    European Commission, ‘Clean Energy for All Europeans: Commission welcomes European Parliament's adoption of new electricity market design proposals’ Press Release (26 March 2019).

  59. 59.

    Meeus et al. (2005), p. 29.

  60. 60.

    Regulation (EC) 713/2009 of the European Parliament and of the Council establishing an Agency for the Cooperation of Energy Regulators (13 July 2009) OJ 2009/L 211/1.

  61. 61.

    Gottschal (2009), pp. 51 et seq. The European Commission is of a different opinion, pointing to the ‘very limited decision-making rights’ of ACER. European Commission, ‘launching the public consultation process on a new energy market design’ (Communication) COM (2015) 340 final 12.

  62. 62.

    ENTSO-E Objectives https://www.entsoe.eu/about/inside-entsoe/objectives/.

  63. 63.

    See Article 8 of Regulation (EC) 714/2009 of the European Parliament and of the Council on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) 1228/2003 (13 July 2009) OJ 2009/L 211/15, 20.

  64. 64.

    Ibid.

  65. 65.

    Commission Regulation (EU) 838/2010 on laying down guidelines relating to the inter-transmission system operator compensation mechanism and a common regulatory approach to transmission charging (23 September 2010) OJ 2010/L 250/5.

  66. 66.

    Regulation (EC) 714/2009 of the European Parliament and of the Council on conditions for access to the network for cross-border exchanges in electricity and repealing Regulation (EC) 1228/2003 (13 July 2009) OJ 2009/L 211/15, 22.

  67. 67.

    Commission Regulation (EU) 2015/1222 establishing a guideline on capacity allocation and congestion management (24 July 2015) OJ 2015/L 197/24.

  68. 68.

    On the mechanism of market coupling in general see above in Sect. 2.2.5, p. 34.

  69. 69.

    Energy Charter Secretariat (2015), p. 50.

  70. 70.

    The European Commission has defined a ‘target design model’ for electricity markets based on the principles of ‘energy only’ and ‘market coupling’. See also Keay (2013).

  71. 71.

    Treaty Establishing the Energy Community (signed on 25 October 2005) OJ 2006/L 198/18.

  72. 72.

    See also Glachant and Ruester (2014).

  73. 73.

    European Commission, ‘Clean Energy for all Europeans Package Completed: Good for Consumers, Good for Growth and Jobs, and Good for the Planet’ Press Release (22 May 2019).

  74. 74.

    ACER, ‘Market Monitoring Report 2012’ (01 December 2012) 69. https://www.acer.europa.eu/Official_documents/Acts_of_the_Agency/Publication/ACER%20Market%20Monitoring%20Report%202012.pdf.

  75. 75.

    The year 2002 marked the start of the ‘Athens Process’ named after the place where the respective Memorandum of Understanding was signed, which foresees the creation of a regional South-East European energy market with the aim of eventual integration into the EU internal electricity market. The MoU was superseded by the Energy Community Treaty signed in 2005 by the European Commission and several South-East European states. See Karova (2011), pp. 80 et seq.

  76. 76.

    Glachant and Ruester (2014), p. 222.

  77. 77.

    Fickling and Schott (2011), p. 18. On 30 November 2018, the three NAFTA parties signed the text of a revised Agreement, the Canada-United States-Mexico Agreement (CUSMA). It entered into force and replaced the NAFTA on 1 July 2020 upon ratification by all three countries. See Canada-United States-Mexico Agreement (signed on 30 November 2018, entry into force 1 July 2020) text available at https://international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cusma-aceum/text-texte/toc-tdm.aspx?lang=eng.

  78. 78.

    Pineau et al. (2004), p. 1468.

  79. 79.

    Fickling and Schott (2011), p. 18. According to the Department of Natural Resources of Canada, 93% of Canada’s total energy exports were destined for the US in 2014, amounting to almost $140 billion. Natural Resources Canada (2015), p. 5.

  80. 80.

    U.S. Energy Information Administration (2013).

  81. 81.

    International Energy Agency (2020), p. 38.

  82. 82.

    U.S. Energy Information Administration (2015).

  83. 83.

    International Energy Agency (2014), p. 39.

  84. 84.

    Ibid.

  85. 85.

    U.S. Department of Energy (2015), p. 6-3.

  86. 86.

    U.S. Energy Information Administration (2015).

  87. 87.

    Western Electricity Coordinating Council, ‘2016 State of Interconnection’ https://www.wecc.biz/Reliability/2016%20SOTI%20Final.pdf.

  88. 88.

    Natural Resources Canada (2015), p. 5.

  89. 89.

    Ibid.

  90. 90.

    Fickling and Schott (2011), p. 18; see also WTO Secretariat (2010), p. 52.

  91. 91.

    U.S. Energy Information Administration (2015).

  92. 92.

    US exports are overall less significant to Canadian provincial electricity supply with the exception of British Columbia, which gets almost 10% of its electricity supply from US states. Fickling and Schott (2011), p. 18.

  93. 93.

    U.S. Energy Information Administration (2015).

  94. 94.

    Ibid.

  95. 95.

    Cabrera-Colorado (2018), p. 86, citing U.S. Department of Energy (2015), p. 6-6.

  96. 96.

    These include a mostly underground 330-mile HVDC line linking renewable generation sites in Quebec with the New York City Metropolitan Area (Champlain Hudson Power Express) which is scheduled for commissioning in 2025 and the 500 kV so-called ‘Great Northern Transmission Line’ from Manitoba to Minnesota which was energized during the final months of 2019 and has since delivered hydropower from Manitoba in Canada to consumption centres in Minnesota. Several applications recently filed for Presidential permits in the field of cross-border electricity transmission with Canada suggest a growing demand for Canadian hydropower in the U.S, partly to meet the climate-related targets of some states. U.S. Department of Energy (2015), p. 6-7.

  97. 97.

    U.S. Energy Information Administration (2013).

  98. 98.

    Ibid.

  99. 99.

    Ibid.

  100. 100.

    Mark Del Franco, ‘Meet the Wind Project that Knows no Borders’ North American Wind Power (Southbury, CT, February 2016) https://nawindpower.com.

  101. 101.

    Fickling and Schott (2011), p. 18; U.S. Department of Energy (2015), p. 6-9.

  102. 102.

    U.S. Department of Energy (2015), p. 6-6.

  103. 103.

    Additional information can be found on the website of the Western Electricity Coordinating Council (WECC) at https://www.wecc.org.

  104. 104.

    Hufbauer and Schott (2005), p. 399.

  105. 105.

    Alberta and Ontario are both operated by separate ISOs. The transmission system of Manitoba is administered by the Midcontinent Independent System Operator, along with the transmission systems of several states in the US Midwest.

  106. 106.

    Mexico became a Member of the GATT in 1986. Canada and the US were both original Members of the GATT 1947.

  107. 107.

    For details see Nakagawa (2016), p. 191.

  108. 108.

    Annex 905.2 (2) of the Canada-United States Free Trade Agreement (2 January 1988) 27 I.L.M. 281 (1989). (‘The United States of America shall cause the Bonneville Power Administration to modify its Intertie Access Policy so as to afford British Columbia Hydro treatment no less favourable than the most favourable treatment afforded to utilities located outside the Pacific Northwest’).

  109. 109.

    WTO Secretariat (2010), p. 180.

  110. 110.

    Article 605 of the North American Free Trade Agreement (17 December 1992) 32 I.L.M. 289 (1993).

  111. 111.

    Reportedly, this happened at a rather advanced stage of CUSMA negotiations upon request by the Mexican Government which assumed office in December 2018. See Weekes et al. (2019).

  112. 112.

    Government of Canada, ‘Canada-United States-Mexico Agreement: Energy Provisions Summary’ https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/cusma-aceum/energy-energie.aspx?lang=eng.

  113. 113.

    Government of Canada, Letter from the U.S./Letter from Canada on Energy (30 November 2018) https://www.international.gc.ca/trade-commerce/assets/pdfs/agreements-accords/cusma-aceum/letter-energy.pdf.

  114. 114.

    Ibid, Article 3. This could specifically enhance coordination between the two countries in the electricity sector. See to this respect Kirkland & Ellis, Blogpost: USMCA Energy & Environmental Takeaways https://www.kirkland.com/publications/blog-post/2020/09/usmca-energy-and-environmental-takeaways.

  115. 115.

    Government of Canada (n 288), Article 4 of the US-Canada Side Letter.

  116. 116.

    Ibid, Article 5.

  117. 117.

    Hufbauer and Schott (2005), p. 418. See also Cabrera-Colorado (2018), p. 89.

  118. 118.

    See Art. 602.3 para 1 c of NAFTA (n 285); see also Rios-Herran and Poretti (2012), p. 359.

  119. 119.

    Annex 602.3 5 (c) of NAFTA (n 285); see also Cabrera-Colorado (2018), p. 93.

  120. 120.

    Annex 602.3 5 (c) of NAFTA (n 285) (‘Where an IPP located in Mexico and an electric utility of another Party consider that cross-border trade in electricity may be in their interests, each relevant Party shall permit these entities and CFE to negotiate terms and conditions of power purchase and power sale contracts. The modalities of implementing such supply contracts are left to the end users, suppliers and CFE and may take the form of individual contracts between CFE and each of the other entities. Each relevant Party shall determine whether such contracts are subject to regulatory approval.’)

  121. 121.

    Rios-Herran and Poretti (2012), p. 336.

  122. 122.

    Ley de la Industria Electrica (11 August 2014). https://www.cenace.gob.mx/Paginas/Publicas/MercadoOperacion/Leyes.aspx.

  123. 123.

    Nakagawa (2016), pp. 191 et seq.

  124. 124.

    Ibid, at 191.

  125. 125.

    See Article 4 of the Ley de la Industria Electrica (n 297).

  126. 126.

    US Department of Energy (2015), p. 6-7.

  127. 127.

    Cabrera-Colorado (2018), p. 94.

  128. 128.

    Ibid, at 97.

  129. 129.

    Hufbauer and Schott (2005), p. 396.

  130. 130.

    Rios-Herran and Poretti (2012), p. 336.

  131. 131.

    The manufacturing sector in Mexico, for example, pays 75% more than their counterparts in the United States. See Lajous (2014), p. 22.

  132. 132.

    Hufbauer and Schott (2005), p. 426.

  133. 133.

    Ibid.

  134. 134.

    Cabrera-Colorado (2018), p. 87.

  135. 135.

    Fickling and Schott (2011), p. 19.

  136. 136.

    In its first Nationally Determined Contribution (NDC) to the Paris Agreement Objectives, Mexico has pledged to reduce its greenhouse gas emissions by 25% in 2030 compared to business as usual. Canada pledged an economy-wide reduction of greenhouse gas emissions of 30% below 2005 levels until 2030. The current status of NDC’s can be consulted at the UNFCCC NDC Registry https://www4.unfccc.int/sites/ndcstaging/Pages/Home.aspx.

  137. 137.

    These are Angola, Botswana, the Democratic Republic of the Congo, Lesotho, Malawi, Mozambique, Namibia, Zambia, South Africa, Swaziland, Tanzania and Zimbabwe.

  138. 138.

    Renewable Energy Policy Network for the twenty-first Century (REN 21) SADC Renewable Energy and Energy Efficiency Status Report 2015 (REN 21 Secretariat 2015), p. 26.

  139. 139.

    Ibid.

  140. 140.

    Spalding-Fecher et al. (2017), pp. 403 et seq.

  141. 141.

    Ibid. See also Economic Consulting Associates, ‘Regional Power Sector Integration: Lessons From Global Case Studies and a Literature Review’ (ESMAP Briefing Note 004/10, June 2010) 2 http://www.esmap.org/sites/esmap.org/files/BN004-10_REISP-CD_The%20Potential%20of%20Regional%20Power%20Sector%20Integration-Literature%20Review.pdf.

  142. 142.

    Economic Consulting Associates (2010), p. 20.

  143. 143.

    REN 21 (n 313), p. 22.

  144. 144.

    Economic Consulting Associates (2010), p. 21.

  145. 145.

    Ibid, at 20.

  146. 146.

    Ibid, at 8.

  147. 147.

    Ibid, at 1.

  148. 148.

    Ibid.

  149. 149.

    Economic Consulting Associates (2010), p. 22.

  150. 150.

    REN 21 (n 313) 26.

  151. 151.

    Economic Consulting Associates (2010), p. 27.

  152. 152.

    Ibid.

  153. 153.

    Ibid.

  154. 154.

    REN 21 (n 312), p. 25.

  155. 155.

    Ibid.

  156. 156.

    Protocol on Energy in the Southern African Development Community (SADC) Region (signed 24 August 1996) available at https://www.sadc.int/documents-publications/show/Protocol_on_Energy1996.pdf.

  157. 157.

    REN 21 (n 312), p. 26.

  158. 158.

    Bowen et al. (1999), pp. 83 et seq. The SAPP excludes the SADC Members of Madagascar, Mauritius and the Seychelles.

  159. 159.

    Economic Consulting Associates (2010), p. 2.

  160. 160.

    Ibid, at 23.

  161. 161.

    Art. 2 SAPP Inter-Utility Memorandum of Understanding (7 December 1994) available at https://www.sadc.int/files/3013/5333/7979/MOU-_Southern_African_Power_Pool_Inter-Utility1994.pdf.

  162. 162.

    Spalding-Fecher et al. (2017), p. 403.

  163. 163.

    Art. 1 SAPP Inter-Utility Memorandum of Understanding (n 336).

  164. 164.

    Economic Consulting Associates (2010), p. 38.

  165. 165.

    REN 21 (n 312) 54.

  166. 166.

    Economic Consulting Associates (2010), p. 1.

  167. 167.

    Ibid.

  168. 168.

    Ibid, at 24.

  169. 169.

    Ibid.

  170. 170.

    Ibid, at 28.

  171. 171.

    Ibid.

  172. 172.

    Ibid.

  173. 173.

    Ibid, at 29.

  174. 174.

    Cf. Ibid.

  175. 175.

    Ibid, at 40.

  176. 176.

    Castalia Strategic Advisors, ‘International Experience with Cross-border Power Trading: Report to the Regional Electricity Regulators’ Association (RERA) and the World Bank (2009), p. 10.

  177. 177.

    Eberhard and Shkarathan (2012), p. 17.

  178. 178.

    REN 21 (n 312), p. 10.

  179. 179.

    ECOWAS, ‘ECOWAS takes steps towards common Monetary Union’ (3 April 2019) https://www.ecowas.int/ecowas-takes-steps-towards-common-monetary-union/.

  180. 180.

    Castalia Strategic Advisors (2009), p. 50.

  181. 181.

    According to numbers for 2019 by the World Bank and International Energy Agency. See World Bank, Sustainable Energy for All (SE4ALL) database from the SE4ALL Global Tracking Framework led jointly by the World Bank, International Energy Agency, and the Energy Sector Management Assistance Program, available at https://data.worldbank.org/indicator/EG.ELC.ACCS.ZS. In countries like Ghana and Nigeria, on the other hand, the access rate is much higher with 84% and 55%, respectively.

  182. 182.

    Pineau (2008), p. 212.

  183. 183.

    Castalia Strategic Advisors (2009), p. 48.

  184. 184.

    Ibid.

  185. 185.

    Castalia Strategic Advisors (2009), p. 49.

  186. 186.

    Reportedly, they were able to raise around 10 billion USD.

  187. 187.

    Revised Treaty of the Economic Community of West African States (ECOWAS), signed 24 July 1993, entered into force 23 August 1995.

  188. 188.

    Ibid, Article 28.

  189. 189.

    Ibid, Article 28 (2) (d).

  190. 190.

    Cf Article 2 of the ECOWAS Energy Protocol, signed 31 January 2003 (entered into force after ninth ratification in accordance with Article 39 of the Protocol).

  191. 191.

    Energy Charter Treaty (17 December 1994) 2080 U.N.T.S. 95. On the ECT see also below in Chap. 6, pp. 123 et seq.

  192. 192.

    Preamble of the ECOWAS Energy Protocol (n 191).

  193. 193.

    Castalia Strategic Advisors (2009), p. 52.

  194. 194.

    Cf. Article 2 of the ECOWAS Energy Protocol (n 191).

  195. 195.

    Cf. the Articles of Agreement of the West African Power Pool Organization and Functions, available at https://erera.arrec.org/en/articles-of-agreement-of-the-west-african-power-pool-organization-and-functions/. The idea to establish a power pool in West Africa dates back to 1992 when it was first suggested within the ECOWAS bureaucracy. By 1999 the heads of the ECOWAS Member States had agreed to formally establish a power pool. The signing of the WAPP Articles of Agreement in July 2006 then marked the official inauguration of the project.

  196. 196.

    Gnansounou et al. (2007), p. 4143.

  197. 197.

    Ibid.

  198. 198.

    Castalia Strategic Advisors (2009), p. 48.

  199. 199.

    Supplementary Act A/SA.2/01/08 creating ERERA, available at https://erera.arrec.org/wp-content/uploads/2018/07/Resolution-No-011-ERERA-17_Rules-of-PracticeProcedures_ERERA.pdf.

  200. 200.

    Ikeonu (2017), p. 8.

  201. 201.

    Adhekpukoli (2018), pp. 1 et seq.

  202. 202.

    Along with Cape Verde, Cote D’Ivoire is the only WAPP member country with an electricity sector where private ownership prevails. See Adebayo and Adeniji (2018), p. 22.

  203. 203.

    This concerns, among others, an unbundling of the accounts for the different segments of the market, access requirements for the transmission infrastructure and harmonization of contracts. Ikeonu (2017), pp. 10 et seq.

  204. 204.

    Press Release, ‘Launching of ECOWAS Electricity Market’ (13 July 2018) http://www.ecowapp.org/en/events/press-release-%E2%80%93-launching-ecowas-electricity-market.

  205. 205.

    Ikeonu (2017), p. 10.

  206. 206.

    Pineau (2008), p. 221.

  207. 207.

    Castalia Strategic Advisors (2009), p. 49.

  208. 208.

    Ibid, at 23.

  209. 209.

    Prada and Bowman (2004), pp. 1 et seq.; Martin (2010), p. 5.

  210. 210.

    Martin (2010), p. 2.

  211. 211.

    Ibid.

  212. 212.

    Ibid, at 5.

  213. 213.

    Prada and Bowman (2004), p. 3.

  214. 214.

    Martin (2010), p. 3.

  215. 215.

    Ibid.

  216. 216.

    The IADB reportedly issued a US$170 million loan to finance part of the total estimated cost of US$385 Million. See Castalia Strategic Advisors (2009), p. 40.

  217. 217.

    Inter-American Development Bank, ‘Energy Integration in Central America: Full Steam Ahead’ (25 June 2013) https://www.iadb.org/en/news/webstories/2013-06-25/energy-integration-in-central-america,10494.html.

  218. 218.

    Ochoa et al. (2013), p. 268. The line is planned for commissioning in 2024.

  219. 219.

    For a detailed description of the development of the SIEPAC project see Del Barrio et al. (2017).

  220. 220.

    Prada and Bowman (2004), p. 2.

  221. 221.

    Tratado Marco y Protocolo del Mercado Eléctrico de América Central (signed 30 December 1996), henceforth referred to as ‘Framework Treaty’, text available at https://www.enteoperador.org/archivos/document/Tratado-Marco-EOR-2019.pdf. The Framework Treaty became legally binding after sufficient ratifications in January 1998.

  222. 222.

    Article 2 of the Framework Treaty (n 221).

  223. 223.

    Prada and Bowman (2004), p. 4.

  224. 224.

    Ibid.

  225. 225.

    Martin (2010), p. 4.

  226. 226.

    Castalia Strategic Advisors (2009), p. 36.

  227. 227.

    Ibid.

  228. 228.

    Sempértegui (2017), p. 437.

  229. 229.

    Martin (2010), p. 5.

  230. 230.

    Del Barrio et al. (2017), p. 126.

  231. 231.

    As Sempértegui (2017), p. 433, notes, this is mainly due to concerns over sovereignty.

  232. 232.

    Ikeonu (2017), p. 8.

  233. 233.

    This is the explicit vision pursued by the Global Energy Interconnection Development and Cooperation Organization (GEIDCO), as outlined in the book of the former chairman of State Grid Corporation of China, Liu Zhenya. Liu (2015).

  234. 234.

    Das Neves (2014), pp. 177 et seq.; Asian Development Bank, Power Interconnection Project to Strengthen Power Trade Between Afghanistan, Turkmenistan, Pakistan (ADB Press Release 28 February 2018) https://www.adb.org/news/power-interconnection-project-strengthen-power-trade-between-afghanistan-turkmenistan-pakistan.

  235. 235.

    Apart from most island states, one prominent example is the Republic of Korea. See Energy Charter Secretariat (2015), p. 77.

  236. 236.

    Cf. Chatzivasileiadis et al. (2013), p. 373 who remark that ‘Comparing the electricity network with networks of similar magnitude, such as the transportation or the telecommunications network, one realizes that several of them have already managed to span the globe. It seems that the only network of similar size which does not form interconnections over the world is the electric power grid.’

  237. 237.

    As Chatzivasileiadis et al. (2013), p. 379 have demonstrated for the US, importing renewable electricity from Europe via a submarine cable could be more economical under certain circumstances than continuing to operate domestic fossil-fuel power plants; See also Selivanova (2015), p. 1.

  238. 238.

    Selivanova (2015), citing Wissenschaftlicher Beirat der Bundesregierung Globale Umweltveränderungen (German Advisory Council on Global Change), World in Transition. Towards Sustainable Energy Systems (2004) 189. On the concept of a global grid, see also Rudenko and Yershevich (1991); Hammons et al. (1994).

  239. 239.

    Liu (2015), p. 13.

  240. 240.

    Chatzivasileiadis et al. (2013), p. 379.

  241. 241.

    Abbott (2014), p. 1.

  242. 242.

    On the DESERTEC project see Liliestam and Ellenbeck (2011); Backhaus et al. (2015).

  243. 243.

    Liu (2015), p. 105.

  244. 244.

    Jinping (2015).

  245. 245.

    Liu (2015), p. 83 f. As Liu points out, ‘Currently, the allocation of capacity of the world’s electric power is limited and can hardly satisfy the future development of clean energy. Compared with fossil energy, the current level of global electricity trade is minimal, representing approximately 80 million tons of standard coal or less than 2% of fossil energy trade.’ Liu (2015), p. 60.

  246. 246.

    Ibid.

  247. 247.

    On the challenges, see also Chatzivasileiadis et al. (2013), p. 77.

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Frey, C. (2022). The Advent of International Electricity Trade. In: World Trade Law and the Emergence of International Electricity Markets. European Yearbook of International Economic Law(), vol 25. Springer, Cham. https://doi.org/10.1007/978-3-031-04756-5_3

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