Decentralised Cross-Border Interconnection

Claude Crampes and Nils-Henrik von der Fehr

The Energy Journal, 2023, vol. 44, issue 4, 147-169

Abstract: Reaping the full benefits from cross-border interconnection typically requires reinforcement of national networks. When the relevant parts of the networks are complements, a lack of coordination between national transmission system operators results in investment below optimal levels in both interconnectors and national infrastructure. A subsidy to financially sustain interconnector building is not sufficient to restore optimality; indeed, even when possible, such subsidisation may have to be restrained so as not to encourage cross-border capacities that will not be fully utilised due to lack of investment in national systems.

Keywords: Electrical grid; Interconnector; Externality; Regulation; Regional cooperation (search for similar items in EconPapers)
Date: 2023
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Citations: View citations in EconPapers (1)

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Related works:
Working Paper: Decentralised Cross-Border Interconnection (2023)
Working Paper: Decentralised Cross-Border Interconnection (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:sae:enejou:v:44:y:2023:i:4:p:147-169

DOI: 10.5547/01956574.44.4.ccra

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