European Electricity Infrastructure: Planning, Regulation, and Financing

Investment in European electricity transmission requires facilitation at the European level. The rate at which renewable energy is integrated into the power sector over the next decade will necessitate significant transmission infrastructure expansion and upgrades, with clear pan-European objectives. Historically, grid planning was primarily carried out at the national level with limited arrangements to share investment costs and assign benefits with a clear and agreed-upon methodology. Now, however, engagement and cooperation at the regional and European level is increasingly important. The Infrastructure Package, a regulation proposed 19 October 2011 by the European Commission (EC) which brings together national and European infrastructure financing, planning, and development. Because of the importance of electricity infrastructure to Europe’s energy and climate objectives, CPI Berlin and the Florence School for Regulation hosted an informal workshop, supported by the Agency for the Cooperation of Energy Regulators (ACER), which brought together perspectives on EU grid infrastructure from regulators, national and EU policy makers, transmission system operators (TSOs), generation companies and academics. This Workshop Report provides a summary of the ideas that emerged from the discussions.