More recently, with rapid increases in power consumption and owing to geopolitical uncertainties associated with fossil-fuel and coal supplies, long distance transmission and cross-border trade in electricity have been on the rise.
Electric power is also increasingly being utilized as a currency to barter for other finished produce
In the case of
Countries with large potential for hydropower generation can seize large benefits by connecting their hydropower stations to transboundary power grids and trading electricity with other nations. Such benefits include income from selling hydropower; construction of hydropower stations not otherwise financially viable; certified emission reduction (CER) credits from a clean development mechanism.
Buyer countries can also reap gains from such a partnership, namely the importing of cheap electricity, diversification of energy sources to improve disaster preparedness, reduction of greenhouse gas emissions, and CER credits in the developing world.