NaN% of global electricity is generated from Net Imports

Trade of energy belongs typically to a category of mechanisms under which countries or regions share their surplus power. This type of energy sourcing can be a key factor in maintaining the balance of power grids, especially between those areas that may have varying surplus and deficits of power due to different factors such as natural resources availability, technological capabilities, and geographical conditions among others. It is a broad category as it can incorporate various types of energy sources, both renewable and non-renewable, and can have varying carbon intensities depending on the primary source of the energy being traded.

In terms of electricity generation, trade essentially involves the transaction of generated power from one grid to another. Suppose Country A has a surplus of wind energy generated, which it can't fully consume. In this case, it could sell this excess power to Country B that may be needing additional power resources. This exchange forms the backbone of energy trade. This type of transaction allows for a dynamic balance of power without the need for every individual area to have standalone facilities to cater to their power needs. In essence, it bolsters a cooperative and collaborative approach to electricity generation and consumption.

However, the carbon intensity of trade energy can vary greatly, with values ranging from as low as 24 gCO2eq/kWh to as high as 820 gCO2eq/kWh, according to IPCC data. This wide range is due to the different energy sources that can be part of energy trade - from low-carbon sources like nuclear (12 gCO2eq/kWh), hydro (24 gCO2eq/kWh), and other renewables like wind (11 gCO2eq/kWh) and solar (45 gCO2eq/kWh), to high carbon-intensive sources like coal (820 gCO2eq/kWh) and oil (650 gCO2eq/kWh). Consequently, if the trade is dominated by fossil-based energy sources, this significantly compromises the carbon footprint and environmental impact of the energy trade.

Moreover, air pollution is also a potential disadvantage if the energy being traded is primarily from fossil fuels. The burning of fossil fuels releases pollutants such as sulfur dioxide, nitrogen oxide, and particulate matter into the atmosphere, which can substantially deteriorate air quality and have profound impacts on human health. In comparison, low-carbon power sources like wind, solar, nuclear, etc., produce negligible to no air pollutants, making them much cleaner options. Hence, the nature of the primary energy source in the trade significantly influences environmental and health outcomes.