Renewable energy is slated to play a larger role in the regional and international energy mix as the cost of adoption and infrastructure reaches greater parity. However, due to the intermittent and widely dispersed nature of renewable sources like solar or wind, this can present a challenge for grid integration.
This is an area which demands sophisticated solutions to be in place, to balance energy supply and demand without placing unnecessary stress on the grid. Smart solutions such as grid automation, forecasting, load and demand planning, and energy storage are needed to safeguard the proper distribution of energy.
These solutions may be difficult to achieve on a unilateral basis, which has ignited greater international and regional integration of power networks and markets. Against this backdrop of developments, changes are also emerging in Asia’s geopolitical conditions.
With China taking an active role in establishing itself as a global leader in energy infrastructure, the US is facing a steep challenge in outlining a strong policy to ensure the global energy market remains a level playing field.
To this end, the Atlantic Council’s International Grid Integration: Efficiencies, Vulnerabilities, and Strategic Implications in Asia Report argues that a strong US response to emerging challenges in the integration of power infrastructure in Asia must include the following:
- Enhancing the technical, policy, governance and legal support This should be geared towards engaging Asian and Middle Eastern partners and regional bodies to promote fair trade, domestic reform, and the effective management of electricity systems.
- Building upon the Free and Open Indo-Pacific strategy Policies should be aimed at helping to develop higher standards for quality energy infrastructure. This could include multiple solutions that are not limited to pooling and coordinating funds among allies and multilateral institutions to compete for projects.
- Innovate, pilot, and share models for integrating high levels of distributed energy resources (DERs) This can be achieved through coordinated decentralisation. Using platforms to aggregate distributed generation, fully engage in capacity markets, and reinforce ‘islanding’ capacity of local distribution areas.
The report goes on to suggest that a robust solution to manage growing Chinese influence is becoming a matter of priority. The Chinese have made great strides in developing transmission lines with near-foreign markets to offtake surplus supply from the energy, construction and engineering sectors.
In the report, the International Energy Agency (IEA) was cited, saying that at least 7,000km of Chinese-built transmission lines are expected to come online in developing Asia between 2013 and 2022. In the meantime, smart US commercial policies will remain a decisive factor in identifying how grid integration is completed.
Learn more about the report’s other findings at: International Grid Integration: Efficiencies, Vulnerabilities, and Strategic Implications in Asia: Atlantic Council