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

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 tra...

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Bibliographic Details
Published inEnergies (Basel) Vol. 11; no. 9; p. 2376
Main Authors Huang, Diyun, Van Hertem, Dirk
Format Journal Article
LanguageEnglish
Published Basel MDPI AG 01.09.2018
Subjects
Case studies
cross-border network investment
Decision making
Electric power transmission
Electricity
Energy
European case study
Incentives
Investment
Perceptions
Planning
Political risk
Regulated industries
Risk
Risk assessment
Stakeholders
Supranationalism
Third party
transmission investment risk analysis
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Summary: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.
ISSN:1996-1073
1996-1073
DOI:10.3390/en11092376