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National-strategic investment in European power transmission capacity

Listed author(s):
  • Huppmann, Daniel
  • Egerer, Jonas

The transformation of the European electricity system requires substantial investment in transmission capacity to facilitate cross-border trade and to efficiently integrate renewable energy sources. However, network planning in the EU is still mainly a national prerogative. In contrast to other studies aiming to identify the pan-European (continental) welfare-optimal transmission expansion, we investigate the impact of zonal planners deciding on network investment strategically, with the aim of maximizing the sum of consumer surplus, generator profits and congestion rents in their jurisdiction. This reflects the inadequacy of current mechanisms to compensate for welfare re-allocations across national boundaries arising from network upgrades.

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File URL: http://www.sciencedirect.com/science/article/pii/S0377221715004671
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Article provided by Elsevier in its journal European Journal of Operational Research.

Volume (Year): 247 (2015)
Issue (Month): 1 ()
Pages: 191-203

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Handle: RePEc:eee:ejores:v:247:y:2015:i:1:p:191-203
DOI: 10.1016/j.ejor.2015.05.056
Contact details of provider: Web page: http://www.elsevier.com/locate/eor

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