Article

Decentralised Cross-Border Interconnection

Claude Crampes et Nils-Henrik Von Der Fehr

Résumé

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 typically 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

Mots-clés

electrical grid; interconnector; externality; regulation; regional; cooperation;

Codes JEL

  • H77: Intergovernmental Relations • Federalism • Secession
  • K23: Regulated Industries and Administrative Law
  • L51: Economics of Regulation
  • L94: Electric Utilities

Remplace

Claude Crampes et Nils-Henrik Von Der Fehr, « Decentralised Cross-Border Interconnection », TSE Working Paper, n° 22-1315, mars 2022.

Référence

Claude Crampes et Nils-Henrik Von Der Fehr, « Decentralised Cross-Border Interconnection », The Energy Journal, vol. 44, n° 4, 2023, p. 147–169.

Publié dans

The Energy Journal, vol. 44, n° 4, 2023, p. 147–169