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Northeast America (NEA) Electricity Profile: Proposal of a Free Trade Area

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  • Marcel Boyer

Abstract

The government of Quebec should formally propose to the governments of neighboring American states (CT, ME, MA, NH, RI, VT, NJ, NY, PA, IL, IN, MI, OH, WI, DE, MD, WV, KY) and the provinces of eastern Canada (NL, NS, NB, ON) an integrated common market in electricity with appropriate commonly owned and shared interconnections and regulatory institutions allowing effective, efficient, transparent and fluid exchanges. The important technological complementarities between the regional production capacities and technologies and the high value added of integration, in particular with the massive arrival of renewable but intermittent energies, are likely to create a win-win situation for all participants. But the game is not only complex, but also demands from the regional leaders, Premiers and Governors, a long-term vision based on strategic complementarities and open competition. Major enabling features revolve around opening the ownership structure of regional producers, integrating the independent system operators (ISO), implementing appropriate mechanisms to adequately face the “not in my backyard (NIMBY)” syndrome. Le gouvernement du Québec devrait proposer officiellement aux gouvernements des États américains voisins (CT, ME, MA, NH, RI, VT, NJ, NY, PA, IL, IN, MI, OH, WI, DE, MD, WV, KY) et des Provinces de l'est du Canada (NL, NS, NB, ON) un marché commun intégré de l'électricité avec propriété commune et partagée des interconnexions et des institutions réglementaires permettant une efficacité, efficience, transparence et des échanges fluides. Les complémentarités importantes entre les technologies de production régionales et la forte valeur ajoutée de l'intégration, en particulier avec l'arrivée massive d'énergies renouvelables mais intermittentes, sont susceptibles de créer une situation gagnant-gagnant pour tous les participants. Mais le jeu est non seulement complexe, mais il exige également des dirigeants régionaux, Premiers Ministres et Gouverneurs, une vision à long terme fondée sur des capacités complémentaires stratégiques et une concurrence ouverte et transparente. Trois facteurs critiques : l’ouverture de la structure de propriété des producteurs régionaux, l’intégration des gestionnaires de réseaux indépendants ISO), la mise sur pied de mécanismes appropriés pour répondre adéquatement au syndrome « pas dans ma cour (NIMBY) ».

Suggested Citation

  • Marcel Boyer, 2020. "Northeast America (NEA) Electricity Profile: Proposal of a Free Trade Area," CIRANO Working Papers 2020s-65, CIRANO.
  • Handle: RePEc:cir:cirwor:2020s-65
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    File URL: https://cirano.qc.ca/files/publications/2020s-65.pdf
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    Keywords

    Electricity Production; Free Trade; Economic Integration; NIMBY; Production d’électricité; Libre échange; Intégration économique; NIMBY;
    All these keywords.

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