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Cross-border Electricity Interconnectors in the EU: the Status Quo

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  • Gert Brunekreeft
  • Roland Meyer

Abstract

An important goal of the European Commission is the promotion of the internal energy market (here specifically electricity), which requires sufficient and adequate cross-border interconnector capacity. However, cross-border interconnector capacity is scarce and, more importantly, the progress of interconnector capacity expansion is too slow. As a result, the Commission has proposed several policy measures to accelerate interconnector investment. This paper provides an overview of the policy debate on interconnector expansion and studies two particular points. First, the effects of network regulation on the interconnector investment and the policy proposals to improve the investment incentives, and more specifically, how to deal with risks. Second, we study the policies and effects of capacity remuneration mechanisms (CRMs) on the use of and the need for cross-border interconnector capacity.

Suggested Citation

  • Gert Brunekreeft & Roland Meyer, 2018. "Cross-border Electricity Interconnectors in the EU: the Status Quo," Bremen Energy Working Papers 0027, Bremen Energy Research.
    • Handle: RePEc:bei:00bewp:0027
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    References listed on IDEAS

    as
    1. Arianna Andreangeli, 2013. "The public enforcement of Articles 101 and 102 TFEU under Council Regulation No 1/2003: due process considerations," Chapters, in: Ioannis Lianos & Damien Geradin (ed.), Handbook on European Competition Law, chapter 2, pages 138-180, Edward Elgar Publishing.
    2. Peter Cramton & Steven Stoft, 2006. "The Convergence of Market Designs for Adequate Generating Capacity," Papers of Peter Cramton 06mdfra, University of Maryland, Department of Economics - Peter Cramton, revised 2006.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    electric utilities; regulation; market design; capacity remuneration mechanisms;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • D47 - Microeconomics - - Market Structure, Pricing, and Design - - - Market Design

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