Crampes, Claude and Fehr, Nils-Henrik M. von der (2022) Decentralised Cross-Border Interconnection. TSE Working Paper, n. 22-1315, Toulouse, France

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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 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.

Item Type: Monograph (Working Paper)
Language: English
Date: March 2022
Place of Publication: Toulouse, France
Uncontrolled Keywords: electrical grid, interconnector, externality, regulation, regional, cooperation
JEL Classification: H77 - Intergovernmental Relations; Federalism; Secession
K23 - Regulated Industries and Administrative Law
L51 - Economics of Regulation
L94 - Electric Utilities
Subjects: B- ECONOMIE ET FINANCE
Divisions: TSE-R (Toulouse)
Institution: Université Toulouse 1 Capitole
Site: UT1
Date Deposited: 15 Mar 2022 12:04
Last Modified: 18 Jul 2023 09:49
OAI Identifier: oai:tse-fr.eu:126719
URI: https://publications.ut-capitole.fr/id/eprint/44889

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