Factors that Influence the Targets and Criteria for Electricity Interconnector Investments

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dc.contributor.author SUPPONEN, Matti
dc.date.accessioned 2012-09-25T16:09:12Z
dc.date.available 2012-09-25T16:09:12Z
dc.date.issued 2012
dc.identifier.issn 1028-3625
dc.identifier.uri http://hdl.handle.net/1814/23936
dc.description.abstract This paper analysis various factors that influence electricity interconnector investments. It shows that several features linked to zonal market design, in particular the possibility to favour market participants in the own country compared to those in the neighbouring countries, distort the investment signals for interconnectors. Uncertainties on investments in both transmission and generation have a big influence in interconnector investment decisions. The paper proposes that flaws in market design, capacity calculation and capacity allocation need to be addressed to provide efficient signals for interconnector investments. It proposes to reduce price zone flaws by forming more natural price zones for Europe. Regarding asymmetry in cost and benefits of interconnector investments this paper proposes a two tier mechanism to rebalance the costs and benefits for the involved parties. en
dc.language.iso en en
dc.relation.ispartofseries EUI RSCAS en
dc.relation.ispartofseries 2012/54 en
dc.relation.ispartofseries Florence School of Regulation en
dc.subject Electricity transmission networks en
dc.subject investments en
dc.title Factors that Influence the Targets and Criteria for Electricity Interconnector Investments en
dc.type Working Paper en


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