Harnessing the Power of Distance.

The Case for Long-distance Electricity Interconnectors.

Last Friday, I had the pleasure of sitting down with some amazing people for a semi-farewell lunch in Barangaroo . Conversation flowed freely and numerous topics were discussed, some at great depth and detail. One that stuck in my mind and has stayed there—despite the jetlag— is the exciting news that Sun Cable project has risen from the ashes.

Having been privy to an early discussion around the project, I couldn’t let go of the hope of seeing the project become a reality. In the relentless pursuit of a cleaner, more sustainable energy future, the concept of long-distance electricity interconnectors is gaining traction and attention worldwide.

The SunCable proposal, described by the business as “the world's largest solar infrastructure network,” includes the construction of a 20-gigatonne solar farm and between 36 and 42 gigatonnes of battery storage capacity at the Newcastle Waters cattle ranch, roughly 750 kilometres south of Darwin. Once complete, it will bring electricity to Indonesia, as well as powering Darwin and connecting to Singapore via a 4,200-kilometre underwater cable.

And it’s not just in “the land down under” that we see visionary leadership enable these types of projects. The northern hemisphere’s ambitious GBP 20 billion Xlinks project , which aims to transport green electricity all the way from Morocco to Devon in the U.K., is not far short of its southern hemisphere cousin. The Xlinks project represents a significant stride in reimagining how we generate, distribute, and consume energy on a global scale. Why do long-distance electricity interconnectors like Xlinks make sense?

Are they economically viable and what is their potential impact on global renewable energy distribution?

The Xlinks Project: A Pioneering Endeavour

The Xlinks project is poised to set a precedent in the realm of renewable energy transmission. By laying down 3,800 kilometres of undersea electric cables, it aims to connect a combined solar and wind plant in Morocco to the U.K., creating a conduit for clean, sustainable energy. The U.K. government’s designation of the project as “of national significance” underscores its potential to be a game-changer.

Economic Viability: Bridging the Cost Gap

Critics might argue that the U.K. should focus on harnessing its own renewable energy resources or importing electricity from closer neighbours. However, the economic argument for long-distance interconnectors like Xlinks is compelling. The combination of both extremely sunny and windy conditions in Morocco allow for the generation of power at a significantly lower cost—GBP 15 per megawatt hour, compared to the GBP 60 per megawatt hour price point of a recent U.K. wind auction.?

Furthermore, the integration costs associated with renewable energy—the additional expenses incurred for networks, storage, and backup capacity during calm weather—are substantial. The U.K.’s Climate Change Committee estimates these costs to be an additional GBP 10 per megawatt hour. As the proportion of renewables in the grid increases, so do these costs. Therefore, even with the capital expenditure and the estimated 15% electricity loss en route, the Xlinks project presents a cost-effective solution, “providing electricity at about GBP 35 per megawatt hour less than similar renewals-produced domestic production.”

Global Trends and the Rise of Mega Links

The concept of long-distance electricity interconnectors is not entirely new. China, with its 22 ultra-high-voltage above-ground mega links, has already embraced this approach, recognizing the efficiency and benefits of transporting electricity from remote, resource-rich areas to densely populated regions. These projects signify a global shift towards optimising renewable energy distribution, irrespective of geographical boundaries.?

The Benefits for African and Middle Eastern Economies

The Xlinks project, and others like it, present a significant opportunity for African and Middle Eastern economies to become pivotal players in the global renewable energy landscape. By harnessing their abundant natural renewable resources, these regions can attract significant investment, create jobs, and establish themselves as key exporters of clean energy. It will not only contribute to their economic development, but also play a crucial role in global efforts in the fight against climate change.

The Role of Cable Companies

The surge in long-distance interconnector projects spells a boon for cable companies, positioning them at the forefront of this transformative trend. As demand for these projects increases, companies are poised to benefit significantly, contributing their expertise and technology to make these ambitious plans a reality.

The Road Ahead: Challenges and Opportunities

While the potential of long-distance electricity interconnectors is immense, there are challenges. The technological complexities, high capital expenditure, and potential political and regulatory hurdles cannot be overlooked. However, the Xlinks project, among others, serves as a testament to the innovative spirit and commitment required to overcome these challenges.

The environmental and economic benefits, coupled with the potential to revolutionise how we distribute and consume energy, make a compelling case for such long-distance interconnectors. As we stand at the dawn of a new era in renewable energy, projects like Xlinks offer a glimpse into a future where clean, sustainable energy knows no boundaries, powering our world more environmentally, economically, effectively, and equitably.?

The Xlinks project and the concept of long-distance electricity interconnectors represent a bold, innovative step towards a more sustainable, interconnected energy future. By tapping into the abundant renewable resources of regions, such as Morocco, we can bridge the cost gap, reduce integration costs, and create a more resilient, robust, and effective energy grid.

The economic benefits extend beyond cost savings, opening new opportunities for investment, job creation, and economic growth in resource-rich regions. The role of cable companies in this transformation cannot be understated, as they bring the necessary expertise and technology to turn these ambitious visions into reality.

However, the road ahead is not without its obstacles. Technological hurdles, high capital expenditures, and potential regulatory issues must be navigated with care and precision. However, the promise of a cleaner, more sustainable, and interconnected energy future makes the journey worthwhile.

In embracing long-distance electricity interconnectors, we are charting a course towards a future where clean energy is accessible, affordable, and available to all, irrespective of geographical boundaries. The Xlinks project is just the beginning. The opportunities are as vast as the distances these interconnectors will cover. The time for long-distance electricity interconnectors is now, and the future they promise is bright, sustainable, and within our grasp.