Crampes, Claude and Fehr, Nils-Henrik M. von der (2023) Decentralised Cross-Border Interconnection. Energy Journal, vol.44 (n°4). pp. 147-169.

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Identification Number : 10.5547/01956574.44.4.ccra


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: Article
Language: English
Date: 2023
Refereed: Yes
Place of Publication: Cambridge
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
Divisions: TSE-R (Toulouse)
Site: UT1
Date Deposited: 17 Jan 2023 08:49
Last Modified: 17 Jan 2023 09:01
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