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Connecting Mediterranean Countries through Electricity Corridors: New Institutional Economic and Regulatory Analysis

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  • Haikel Khalfallah

    (équipe EDDEN - PACTE - Pacte, Laboratoire de sciences sociales - UPMF - Université Pierre Mendès France - Grenoble 2 - UJF - Université Joseph Fourier - Grenoble 1 - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - CNRS - Centre National de la Recherche Scientifique)

Abstract

A super grid connecting the two shores of the Mediterranean could help Europe meet its targets for integrating renewable energy. This paper assesses the business models for building a platform for wholesale renewable energy trade via electricity corridors linking the two regions of the Mediterranean basin. We demonstrate that the optimal framework for designing the corridor project is a long-term contractual agreement to coordinate bilaterally the necessary investments. Furthermore a hybrid governance structure requiring only limited regulatory adaptation seems to be the most efficient structure for facilitating investment in the corridor's infrastructure.

Suggested Citation

  • Haikel Khalfallah, 2015. "Connecting Mediterranean Countries through Electricity Corridors: New Institutional Economic and Regulatory Analysis," Post-Print hal-01111432, HAL.
    • Handle: RePEc:hal:journl:hal-01111432
    DOI: 10.1016/j.jup.2015.01.001
    Note: View the original document on HAL open archive server: https://hal.univ-grenoble-alpes.fr/hal-01111432
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    References listed on IDEAS

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    Cited by:

    1. Jebali, Eya & Essid, Hédi & Khraief, Naceur, 2017. "The analysis of energy efficiency of the Mediterranean countries: A two-stage double bootstrap DEA approach," Energy, Elsevier, vol. 134(C), pages 991-1000.
    2. Guler, Burak & Çelebi, Emre & Nathwani, Jatin, 2018. "A ‘Regional Energy Hub’ for achieving a low-carbon energy transition," Energy Policy, Elsevier, vol. 113(C), pages 376-385.
    3. Engelken, Maximilian & Römer, Benedikt & Drescher, Marcus & Welpe, Isabell M. & Picot, Arnold, 2016. "Comparing drivers, barriers, and opportunities of business models for renewable energies: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 60(C), pages 795-809.
    4. Poudineh, Rahmatallah & Rubino, Alessandro, 2017. "Business model for cross-border interconnections in the Mediterranean basin," Energy Policy, Elsevier, vol. 107(C), pages 96-108.
    5. Francesca Pia Vantaggiato, 2020. "Networks as First Best? Network Entrepreneurship and Venue Shifting in the Establishment of the Network of Euro–Mediterranean Energy Regulators," Journal of Common Market Studies, Wiley Blackwell, vol. 58(3), pages 654-671, May.

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    Keywords

    New Institutional Economics; Regulation; Renewable Energy Sources;
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