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

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.

Drivers of the Quality of Electricity Supply

“…The authors are probably right when they do not envisage price regulation without affecting quality and esteem that not only output should be concern, but input and processes as much as possible. In this prospect, regulation plays a key role with environmental challenges, or as defended by Huyang and Van Hertem (2018), through tariff setting responsibility or project approval. They also underline that other factors such as raw material prices, inflation, and political risks can increase uncertainties.…”