Transnational transmission of renewable energies: a study on international legal mechanisms to further cross-border interconnections of power transmission facilities

© 2013 Dr. Rafael M. Plaza RevecoClean energy and energy supply have become a concern worldwide, for energy itself is deemed a strategic trading commodity. This inquiry explores whether the consideration of cross-border interconnection of transmission grids at a large-scale along with unrestrained legally-secured power transit might play a significant role in solving such a concern whilst contributing to achieve sustainable development. Despite potential benefits of such a configuration, power grid interconnection is far from being the standard at international level. Although legal doctrines and rules have been developed for protecting international energy-related investments, power-trading and power transit remains inadequately regulated and subjected to political whims and calculations. By using a thematic approach to three selected case-studies, the research delves into the Brazilian scheme to set up an energy mix based mostly on renewable sources and its relationship with transmission grid expansion processes. Despite failing to create a single power market, the European Union is worth analysing as the most advanced regulatory model for transnational power transit. Lastly, a non-integrated developing area: South America is considered as a suitable regional context in which testing the research’s argument. This research explores, therefore, from a legal perspective, the paradoxical phenomenon of power grid isolation and looks for an explanation about why it still prevails internationally. Specifically, it addresses the question of what international legal mechanisms could be employed to remove barriers – whether internal or external - hindering cross-border grid interconnections, thus facilitating power-trade and transit as well as to take advantage of opportunities for energy efficiency capable to secure ‘green’ energy supply, reduce atmospheric emissions and, ultimately, targeting sustainable development, at least, in regional contexts. The thesis advances the proposition that cross-border power grid interconnection coupled with an international legal framework realigned to harmonise energy mixes may solve the concerns on clean energy and energy security by contributing to the integration of renewable energy technologies at a large-scale and promoting unrestrained power flow and trade across-borders. As a practical outcome the thesis develops legal recommendations and models of an international declaration and a transnational agreement on grid interconnection and power transit in which the findings of the inquiry are embodied in the form of a set of international legal propositions