Financing investment in the European electricity transmission network: Consequences on long-term sustainability of the TSOs financial structure

Arthur Henriot

Energy Policy, 2013, vol. 62, issue C, 821-829

Abstract: This article focuses on the ability of European TSOs to meet the demand for substantial investments in the electricity transmission grid over the next two decades. We employ quantitative analysis to assess the impact of the required capital expenditures under a set of alternative financing strategies. We consider a best-case scenario of full cooperation between the European TSOs. It appears that under current trends in the evolution of transmission tariffs, only half the volumes of investment currently planned could be funded. A highly significant increase in transmission tariffs will be required to ensure the whole-scale investments can be delivered. Finally, alternative strategies can dampen the impact on tariffs but they can only partially substitute for this increase in charges paid by network users.

Keywords: Investment; Electricity transmission grid; Transmission system operator (search for similar items in EconPapers)
Date: 2013
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Citations: View citations in EconPapers (17)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:62:y:2013:i:c:p:821-829

DOI: 10.1016/j.enpol.2013.07.011

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