9/14/2023 0 Comments Greece agree to link power grids![]() This international infrastructure responds to three well-identified challenges in the energy transition. According to GEIDCO, the Global Energy Interconnection project intends to establish “a modern, clean and electricity-centric energy system that is globally interconnected, jointly built, and mutually beneficial to all” ![]() The project aims primarily at developing electricity infrastructure on both sides of the Eurasian continent. Presented in 2015 by President Xi Jinping at the United Nations Sustainable Development Summit, this project, known as the Global Interconnection Initiative, is led by the Global Energy Interconnection Development and Cooperation Organization (GEIDCO), an international nongovernmental organization. This is evidenced by the mega-project to intercontinentally link the Chinese and European power grids and, in the longer term, the global linking of electricity networks on all continents. More specifically, as it is part of a complex value chain where competition, security and innovation issues intersect, electricity transmission is one of the pillars of China’s New Silk Roads. Within the energy sector, electricity is an interesting component of the BRI in Europe for China, as it is a strategic sector for the Union. The Global Interconnection Initiative: The view of Climate Leadership through Electricity Infrastructure In 2019, the transport, energy, utilities and infrastructure sector was the fourth largest sector of Chinese foreign direct investment (FDI) in the EU, with 800 million euros Between 20 alone, Chinese investment in the EU grew by 77% among the most concerned sectors were telecommunications, real estate and automotive. Underlying this, the long-standing trend of deindustrialization in the West, as well as China’s ambition to pursue an active investment policy in Europe, further contributed to the equation. This was due to the decrease in asset values and to a revised Chinese policy for overseas mergers and acquisitions. For example, between 2010 and the end of 2012, the volume of Chinese investments in the European Union quadrupled, from 6 to 27 billion euros In Europe, the surge in Chinese investments across all sectors is due to a combination of the debt crisis, beginning in 2008, and the perceived mutual economic opportunity for European and Chinese institutions to deepen their relationship, notably through the purchase of euro bonds (a common debt instrument for eurozone countries) and investments in strategic infrastructure. Moreover, according to recent research, energy represents two-thirds of China’s spending on the BRI, the remainder going to the transportation and telecommunications sectors The energy sector is indeed an integrated part of the new Chinese Belt and Road Initiative (BRI). For these reasons, investments in the power sector and its infrastructure are growing significantly, mainly in Europe but also in other economically powerful countries. On the one hand, new uses, mainly arising from digitalization, are increasing the demand for electricity on the other hand, energy transition policies aim to electrify overall energy consumption so as to reduce greenhouse gas emissions downstream while decarbonizing production upstream, particularly through renewable energies. Today, although energy consumption in Europe is stable or even declining, electricity is a major and growing part of this market. ![]() ![]() But most of all it contributes to socio-economic development and has numerous geopolitical and environmental impacts. China’s conquest of the European power sectorĮnergy has a very high capital intensity at all stages of its value chain. ![]()
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