Analysis of past energy transitions of OECD and BRICS countries in the scope of energy interconnection

Different baseline endowments and circumstances among countries, including local events, have resulted in disparities in energy policy and status. Differences in energy status have caused countries to make various decisions, but with the implementation of grid interconnections, some countries elected to plan the development of their energy sector while considering the energy status and future plans of other countries. These shared and separate trends have created similarities and patterns in energy transitions across countries. This study used a statistical approach to analyze how certain factors, such as the use of local resources and the establishment of interconnections, caused different trajectories in the energy sectors of countries, as well as similar patterns. Our study consists of two parts: an examination of the energy transition from 1965 to 2014 using Optimal Matching, and a study of the 2014 energy situation using Principal Component Analysis. The findings of this analysis indicate that OECD and BRICS countries have different attitudes toward the contemporary transition to renewable energy. Electricity interconnection has the greatest impact on countries with low national energy consumption, supporting resource diversification. In some cases, interconnections can also minimize the need for transition, since the excess resources of neighboring countries become available to balance energy needs. In the context of the current energy crisis, energy security benefits from electricity interconnection and pipeline interconnection, but only when commerce is undertaken between interdependent partners that share strong economic links.