The Benefits of Investing in Electricity Transmission: A Case Study of Northern Europe

Abstract:
Electricity trading can bring down the costs of the EU’s transition to a competitive low-carbon economy, in particular by facilitating the integration of renewable energy from variable sources. Yet insufficient grid infrastructure and regulatory obstacles prevent the trading potential from being fully realised in northern Europe. While many interconnector projects are under development, various barriers are precluding the grid rollout from taking place on time. The European Commission’s energy infrastructure package is an important step forward to overcome these barriers. But the scale and urgency of the infrastructure challenge call for significant further progress.