Energy is crucial as a foundational element for human survival and development. The world has come to a consensus on leading sustainable development with green and low-carbon energy transition as the core to cope with increasingly severe global challenges, such as climate change, environmental pollution, resource scarcity, poverty and health issues. As an interconnected, safe, reliable and cost-effective multi-energy system dominated by clean energy and centering on electricity, the Global Energy Interconnection (GEI) provides a comprehensive solution and an implementation pathway for energy transition. UN Secretary General António Guterres stated that “GEI is the key to combating global climate change, and realizing inclusive and sustainable growth worldwide.”

The shift towards green and low-carbon energy transition represents a multifaceted and demanding endeavor. Its development trend and process are influenced by numerous factors such as economy, resources, technology, industry, policy and international relations. Since countries and regions differ in development stage, resource endowment and many other aspects, they need to apply novel technologies, develop innovative models and implement new projects in light of local conditions. The GEI development is an integrated practice for countries to propel the green and low-carbon energy transition. In order to facilitate energy transition and accelerate the GEI development, Global Energy Interconnection Development and Cooperation Organization (GEIDCO) has released the Global Energy Interconnection Report 2023.

This report is an annual analysis, assessment and outlook report for global energy development, divided into five parts. The first part is annual review of global green transition. From 4 dimensions, including macro environment, energy transition, development of energy interconnection, technological innovation, it analyzes and reviews the current situation and characteristics of global green energy transition. The second part is analysis of critical issues on global energy development. It analyzes the selected critical issues in 2022 of the global energy development by means of interview survey and scenario analysis, and puts forward inspirations and suggestions for the development of global energy and power systems. The selected topics are geopolitical conflicts and energy security, extreme weather and power security, and the development of green hydrogen and electrosynthesis of fuel. The third part is global energy interconnection development index. It applies the Global Energy Interconnection Development Index (GEIDI) to systematically evaluate the performance, ranking and characteristics of green energy transition in the world, 10 major regions, and more than 140 countries from four aspects:

green and low-carbon, development security, interconnection, and economic efficiency. It also quantifies the development process and gap of the global energy transition. The fourth part is innovation practice on global green transition. From the four fields of clean energy, power grid development, smart grid, and final energy consumption, it selects and displays 20 GEI innovative practice cases in 2022 with large comprehensive impact, high innovation value, exceptional transformative and promotional performance, and strong demonstrative effects. The fifth part is out_x005f?look on global energy transition and development. Focusing on the six themes of economy and society, energy supply and demand, energy security, interconnection, technological innovation and international cooperation, it gives an outlook on the near-to-medium-term trend and development direction of global energy transition.

GEIDCO will continuously enrich and refine global green transition data, models, indexes and solutions. This report will provide valuable references for governments, organizations, enterprises and institutions to study energy transition policies, formulate energy and power planning, and facilitate major technological innovations and project implementation. GEIDCO is prepared to collaborate with all sectors of society to accelerate the global energy transition, build an interconnected modern multi-energy system dominated by clean energy and centering on electricity, and make unremitting efforts to achieve the temperature control goals of the Paris Agreement and the sustainable development goals (SDGs) set by the United Nations！

Annual Review of Global Green Transition

PREFACE

1.1Annual Review of Global Green Transition

1 Macro Environment 002

1.1.1 Economic Society 002

1.1.2 Climate Policy 004

1.1.3 Green Investment 007

1.2 Energy Transition 010

1.2.1 Total Supply 010

1.2.2 Consumption Structure 015

1.2.3 Carbon Market and Electricity Market 020

1.2.4 Carbon Emissions 026

1.3 Development of Energy Interconnection

028

1.3.1 Clean Energy 028

1.3.2 Smart Grid 030

1.3.3 Interconnection 034

1.4 Technological Innovation 037

1.4.1 Technological Advancement 037

1.4.2 Cost Change 041

2Analysis of Critical Issues on Global Energy Development

2.1? Geopolitical Conflicts and Energy

Security 044

2.1.1? Butterfly Effects of Global Energy and

Economy 044

2.1.2? Enlightenment of Geopolitical Conflicts

on Development 049

2.2 Challenges of Extreme Weather to

Power Security 053

2.2.1 Extreme Weather Events 054

2.2.2 Challenges to the Power System Safety 055

2.2.3 Climate Adaptive Power System 058

2.3 Development of Green Hydrogen and

Electrosynthesis of Fuels 060

2.3.1 Green Hydrogen Technology and

Development 061

2.3.2 Electrosynthesis of Fuel Technology and

Development 068

2.3.3 Electricity-Hydrogen Coordinated Zero

Carbon Energy System 071

3Global Energy Interconnection Development Index

3.1 GEI Concept 074

3.1.1 Concept Connotation 074

3.1.2 Development Vision 076

3.2 Index System 077

3.2.1 Indicator System 079

3.2.2 Evaluation Methods 082

3.2.3 Evaluation Process 082

3.3 Global Energy Interconnection

Development Index 083

3.3.1 GEI Development Global Index 083

3.3.2 Green and Low-carbon Index 086

3.3.3 Development Security Index 088

3.3.4 Interconnection Index 089

3.3.5? Economic Efficiency Index 092

3.4 Regional Characteristics 094

3.4.1 Europe 095

3.4.2 North America 098

3.4.3 Oceania 100

3.4.4 East Asia 102

3.4.5 Central and South America 104

3.4.6 Southeast Asia 106

3.4.7 South Asia 109

3.4.8 Russia and Central Asia 111

3.4.9 West Asia and North Africa 113

3.4.10 Sub-Saharan Africa 116

3.5 Country Ranking 118

3.5.1 Country Ranking in GEIDI 118

3.5.2 Ranking in Sub-indexes 121

4Innovation Practice on Global Green Transition

4.1 Clean Energy 124

4.1.1 Hornsea 2 Offshore Wind Farm at

North Sea 124

4.1.2 “PV+” Mode Practive of Three Gorges

Energy in China 126

4.1.3 Zungeru Hydropower Station

in Nigeria 128

4.1.4 Fengning Pumped Storage Power

Station in China 130

4.1.5 Ca Mau 1# Offshore Wind Power

Station in Vietnam 131

4.2 Power Grid Development 133

4.2.1 Zhundong-East China (South Anhui)

±1100 kV UHVDC Project in China 133

4.2.2 Ethiopia-Kenya ±500 kV DC

Transmission Project 135

4.2.3 Zhangbei VSC-HVDC Project in China 136

4.2.4 UK-Norway World’s Longest Submarine

Cable Interconnection Project 138

4.2.5 Baihetan-Jiangsu/Zhejiang ±800 kV

UHVDC Project in China 139

4.3 Smart Grid 141

4.3.1 Xiong’an Smart Grid in China 141

4.3.2 Saudi Arabia Smart Meter 144

4.3.3 State Grid New Energy Cloud in China 146

4.3.4 California VPP in the United States 147

4.3.5 Jiangsu Zhenjiang Energy Storage

Power Station in China 149

4.4 End-use Sectors 152

4.4.1 Shenzhen V2G Operation Management

Platform in China 152

4.4.2 Shell Refhyne Electrohydrogen

Production Project 154

4.4.3 Lanzhou Liquid Solar Fuel Synthesis

Demonstration Project in China 156

4.4.4 Jiangsu Yining Energy Micro-carbon

Smart Energy Science and Technology

Innovation Industrial Park in China 157

4.4.5 Envision Ordos Zero-carbon Industrial

Park in China 160

5Outlook on Global Energy Transition and Development

5.1 Economy and Society 165

5.1.1 Population Size 165

5.1.2 Economic Growth 168

5.1.3 Low-carbon Industry 170

5.1.4 Green Investment 171

5.2 Energy Supply and Demand 173

5.2.1 Energy Production 173

5.2.2 Energy Consumption 175

5.3 Energy Security 177

5.3.1 Supply Security 177

5.3.2 Trade Security 179

5.3.3 Market Security 180

5.4 Interconnection 182

5.4.1 Power Grid Configuration System 182

5.4.2 Green Hydrogen Configuration System 184

5.5 Technological Innovation 186

5.5.1 Clean Power Generation

Technologies 187

5.5.2 New Types of Energy Storage 190

5.5.3 Advanced Power Transmission

Technologies 192

5.5.4 Electricity Replacement Technology 194

5.5.5 Green Hydrogen and Green Chemical

Technology 195

5.5.6 Carbon Capture, Utilization, and

Storage Technology 196

5.6 International Cooperation 198

5.6.1 Mechanism Establishment 198

5.6.2 Green Finance 201

5Outlook on Global Energy Transition and Development

Appendix A Research Methodology for Annual Review of Global Green Transition 202

Appendix B GEIDI Model and Method 203

Appendix C Integrated Assessment Model for Global Energy Transition Outlook 238