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Local network operators in an integrated electricity market

Author

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  • Horn, Henrik
  • Tangerås, Thomas

Abstract

Electricity market integration offers significant potential for gains from trade. However it requires that enough transfer capacity is supplied by the transmission system operators (TSOs) that manage local networks. The incentive for TSOs to allocate international interconnection capacity has long been a concern for competition authorities. For example, the European Commission has in several cases argued that withholding of interconnection capacity by TSOs may have represented abuse of dominant position.

Suggested Citation

  • Horn, Henrik & Tangerås, Thomas, 2025. "Local network operators in an integrated electricity market," Energy Economics, Elsevier, vol. 150(C).
  • Handle: RePEc:eee:eneeco:v:150:y:2025:i:c:s0140988325006061
    DOI: 10.1016/j.eneco.2025.108779
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    Keywords

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    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • L43 - Industrial Organization - - Antitrust Issues and Policies - - - Legal Monopolies and Regulation or Deregulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • Q27 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - Issues in International Trade
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices

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