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Cross-Border Electricity Transmission Network Investment: Perspective and Risk Framework of Third Party Investors

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  • Diyun Huang

    (Energy Ville/Electa Research Group, Electrical Engineering Department ESAT, University of Leuven, Heverlee 3001, Belgium)

  • Dirk Van Hertem

    (Energy Ville/Electa Research Group, Electrical Engineering Department ESAT, University of Leuven, Heverlee 3001, Belgium)

Abstract

In Europe, significant amount of interconnection capacity investments are expected in the next decades. However, the risks associated with transmission network investment in the cross-border context are rarely discussed. In this paper, we develop a conceptual framework to assess the cross-border transmission network investment risks from the third party investor perspective. Risks are examined in relation to cost benefit perceptions in different phases of projects to shed lights of the dynamics in the life cycle of the project. The risk framework also takes into account the energy governance at different institutional level to characterize the uncertainties from cross-border coordination. The proposed risk framework is applied to the European case study.

Suggested Citation

  • Diyun Huang & Dirk Van Hertem, 2018. "Cross-Border Electricity Transmission Network Investment: Perspective and Risk Framework of Third Party Investors," Energies, MDPI, vol. 11(9), pages 1-13, September.
    • Handle: RePEc:gam:jeners:v:11:y:2018:i:9:p:2376-:d:168683
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    References listed on IDEAS

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    Cited by:

    1. Biancardi, Andrea & Di Castelnuovo, Matteo & Staffell, Iain, 2021. "A framework to evaluate how European Transmission System Operators approach innovation," Energy Policy, Elsevier, vol. 158(C).
    2. Remy Tehero & Emmanuel Brou Aka & Murat Cokgezen, 2020. "Drivers of the Quality of Electricity Supply," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 183-195.

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