Electricity interconnection between markets allows the efficient dispatch of resources and reserves across wider geographical areas and takes advantage of differences in instantaneous demand, renewables output, and plant availability.
In Europe, for example, trading across interconnectors is very efficient at the day-ahead stage due to market coupling via a common algorithm. European electricity markets are currently working to extend this market coupling to cover intra-day, reserve, and balancing markets. On top of the above cross border markets interconnections enhance renewable penetration into the grid.
The harmonisation of the regulatory frameworks of the national power markets will lead to the creation of an efficient regional power market, which will greatly improve the operation of the electricity systems and serve the overriding purpose of the construction of the GCC Grid, which is to eventually interlink the national power grids of all six GCC countries
A study to examine the course to date of the GCC Grid progress, identifying bottlenecks and suggesting realistic solutions, coupled with an analysis of current power markets’ status and the proposal of a market harmonization plan which will lead to a common power market in the next decade.
Energy trade in the MENA region: Looking beyond the Pan-Arab electricity market (Journal of World Energy Law & Business)