Connecting Mediterranean countries through electricity corridors: New Institutional Economic and regulatory analysis
Utilities Policy, 2015, vol. 32, issue C, 45-54
A super grid connecting the two shores of the Mediterranean could help Europe meet its targets for integrating renewable energy. This paper assesses the business models for building a platform for wholesale renewable energy trade via electricity corridors linking the two regions of the Mediterranean basin. We demonstrate that the optimal framework for designing the corridor project is a long-term contractual agreement to coordinate bilaterally the necessary investments. Furthermore a hybrid governance structure requiring only limited regulatory adaptation seems to be the most efficient structure for facilitating investment in the corridor's infrastructure.
Keywords: New Institutional Economics; Renewable energy sources; Regulation (search for similar items in EconPapers)
JEL-codes: L14 L51 Q27 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:32:y:2015:i:c:p:45-54
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