Cross-Border Electricity Interdependence as State Power

Detailed Explanation With Case Laws

1. Introduction

Cross-Border Electricity Interdependence as State Power examines how a country's dependence on electricity networks, generation capacity, fuel supplies and interconnectors in other countries can influence the exercise of state power.

Modern electricity systems are increasingly interconnected:

Country A → Interconnector → Country B → Regional Electricity Market

This creates economic benefits, but it also creates strategic dependence. A state may use electricity infrastructure, market access, regulation or energy policy to protect national interests or pursue wider foreign-policy objectives.

The legal challenge is to balance national sovereignty and energy security with cross-border cooperation and market integration.

2. Meaning of Electricity Interdependence

Electricity interdependence occurs when countries depend on each other for aspects of their electricity systems.

Dependence may involve:

electricity imports;

electricity exports;

interconnectors;

balancing services;

reserve capacity;

transmission infrastructure;

renewable-energy resources; and

emergency electricity assistance.

For example:

Country A produces surplus electricity

↓

Country B depends on imports

↓

Interconnector connects both systems

↓

A disruption in Country A can affect Country B.

Therefore, electricity infrastructure can have both economic and strategic importance.

3. Electricity as an Element of State Power

Electricity can contribute to state power in several ways.

Energy Security

States can reduce dependence on a single foreign supplier by diversifying electricity sources and interconnections.

Economic Power

A country with substantial generation capacity may become an important electricity exporter.

Infrastructure Power

Control over important transmission infrastructure can create strategic influence.

Regulatory Power

States can use licensing, market rules and infrastructure approvals to influence energy flows.

Emergency Power

During shortages, states may prioritise domestic electricity needs.

However, the exercise of such powers is constrained by international, regional and domestic law.

4. EU Internal Electricity Market

The European Union provides an important example of legally managed interdependence.

Regulation (EU) 2019/943 seeks to facilitate cross-border electricity exchanges and the integration of national electricity markets.

The Regulation requires barriers to cross-border electricity flows to be removed where appropriate and establishes rules concerning cross-zonal capacity, congestion management and market integration.

This means that Member States retain important national responsibilities while accepting common rules designed to make electricity markets more interconnected.

5. Sovereignty and Cross-Border Rules

Electricity interdependence can create tension between national sovereignty and regional cooperation.

A state may wish to:

protect domestic electricity consumers;

reserve electricity for domestic use;

restrict foreign ownership;

protect critical infrastructure; or

control strategic transmission assets.

But such measures may conflict with:

free movement principles;

competition rules;

non-discrimination;

electricity-market regulations; and

international obligations.

Therefore, state power in interconnected electricity markets is legally constrained rather than unlimited.

6. Case Law: Essent Belgium

In Joined Cases C-105/12 to C-107/12, Essent Belgium NV and Others v Vlaamse Reguleringsinstantie voor de Elektriciteits- en Gasmarkt, the Court of Justice considered Flemish rules concerning electricity supply and renewable-energy support.

The Court examined whether national measures affecting cross-border electricity and market access were compatible with EU law.

Relevance

The case demonstrates that national energy policies may have cross-border effects and must comply with applicable EU internal-market principles.

7. Case Law: Ålands Vindkraft

In Case C-573/12, Ålands Vindkraft AB v Energimyndigheten, the Court of Justice examined Sweden's renewable-electricity support scheme, which was largely connected to electricity produced within Sweden.

The Court accepted that restrictions affecting electricity imported from other Member States could be justified in certain circumstances by legitimate environmental objectives.

Relevance

The case illustrates an important principle: states retain some policy space to pursue national energy and environmental objectives, but such measures must satisfy the requirements of EU law.

8. Case Law: Commission v Poland

In Case C-573/12 and related EU energy cases, the Court has repeatedly examined national energy measures affecting cross-border electricity markets.

A particularly important example is Commission v Poland, concerning Poland's electricity-market and energy policy obligations.

Relevance

The broader EU case law demonstrates that national energy policy is increasingly influenced by common European rules where electricity markets are interconnected.

9. Cross-Border Interconnectors

Interconnectors are central to electricity interdependence.

They allow:

Electricity exports → Imports → Balancing → Emergency support

However, they can also create strategic vulnerabilities.

A country highly dependent on one interconnector may face problems if that connection is:

damaged;

deliberately disconnected;

technically unavailable;

congested; or

subject to regulatory restrictions.

Consequently, modern energy-security policy increasingly considers redundancy and diversification.

10. State Control of Critical Infrastructure

Electricity transmission infrastructure may be considered strategically important.

States may therefore regulate:

foreign ownership;

acquisition of transmission assets;

security-sensitive investments;

access to critical infrastructure; and

cybersecurity.

Such measures attempt to protect essential electricity systems from excessive external dependence.

However, investment restrictions must still comply with applicable domestic and international legal obligations.

11. Electricity Interdependence and Emergency Situations

Interdependence becomes particularly important during electricity emergencies.

For example:

Country A experiences generation shortage

↓

requests electricity from

Country B

↓

Cross-border electricity flow increases.

Legal frameworks may establish rules for:

emergency assistance;

system restoration;

reserve sharing;

priority supply;

information exchange; and

coordinated system operation.

Thus, interdependence can provide resilience, but excessive dependence can also create vulnerability.

12. Renewable Energy and Interdependence

Renewable energy increases the importance of cross-border cooperation because wind and solar resources vary geographically.

For example:

High wind production in Country A

→ electricity exported to

Country B with higher demand

This allows interconnected states to share renewable resources.

Cross-border interconnection can therefore support decarbonisation while also increasing mutual dependence.

13. Brexit Example

Brexit provides an important example of how changes in political relationships can affect electricity governance.

Great Britain left the EU internal electricity market after the transition period, while physical electricity interconnectors with EU countries continued operating.

The EU-UK Trade and Cooperation Agreement provides a framework for energy cooperation.

This demonstrates that political separation does not remove physical electricity interdependence.

14. Limits on State Power

State power in cross-border electricity systems is limited by law.

Important constraints include:

Non-Discrimination

States cannot arbitrarily discriminate against cross-border electricity.

Competition Law

Governments and state-owned companies must respect applicable competition rules.

International Agreements

Treaties can limit unilateral action.

Energy-Market Rules

Regional market rules can regulate interconnector capacity and electricity trading.

Environmental Law

Energy-security measures must also consider environmental obligations.

15. Importance for Energy Law

This topic connects:

energy security;

electricity-market law;

international law;

national sovereignty;

competition law;

infrastructure regulation;

environmental law; and

foreign investment regulation.

It demonstrates that electricity is not simply a commercial commodity. In interconnected systems, it can also have strategic and geopolitical significance.

16. Conclusion

Cross-Border Electricity Interdependence as State Power examines the relationship between electricity dependence and governmental authority.

Cross-border electricity connections can provide:

Security + Trade + Renewable Integration + Economic Cooperation

but they can also create:

Dependence + Infrastructure Vulnerability + Strategic Risk

Cases such as Essent Belgium and Ålands Vindkraft demonstrate that national energy policies with cross-border effects must be examined within the wider legal framework governing the internal electricity market.

The EU model shows that states do not completely lose control over electricity policy through interdependence. Instead, national authority operates alongside regional rules, regulatory cooperation and cross-border obligations.

Ultimately, electricity interdependence creates a dual relationship: countries become more mutually dependent, while states retain important powers to protect energy security and critical infrastructure. Effective energy law therefore seeks to balance sovereignty, security, market integration and international cooperation.