Interconnecting grids

In many regions of the world, liberalized energy markets have introduced the phenomenon of trading to electricity sectors and trading is enabled by coupling electricity markets with network interconnections.

These interconnections can link separate power systems within a country, or connect the national grids of separate countries. Coupled electricity markets require stable, controlled power flows for electricity trading to work effectively, or at all and this is obtained using HVDC technology. 

Electrical networks in separate countries can evolve quite differently and may have very different standards and technologies. Direct Current (DC) is the only possible technical solution when interconnecting energy markets that operate at different frequencies (asynchronous) or are otherwise incompatible, allowing them to exchange power without requiring the tight coordination of a synchronous network. 

Furthermore, HVDC interconnections help to reduce system losses, increase transmission capacity, improve power quality and help to integrate more renewable power into the energy mix.