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The assessment of the 10% interconnection target: security of supply, market integration and CO2 impacts

Mezősi, András and Pató, Zsuzsanna and Szabó, László (2015) The assessment of the 10% interconnection target: security of supply, market integration and CO2 impacts. Working Paper. DIW Berlin.

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Official URL: http://rekk.hu/publikacio/33/a_10_hatarkeresztezo_cel_hatasa_az_ellatasbiztonsagra_piacintegraciora_es_co2_kibocsatasokra


Abstract

The aims of the present paper are twofold. First, it analyses the applicability of the 10% interconnection indicator with respect to medium/long term security of supply and market integration: Does it accurately consider the SOS situation of the Member States? Does it reflect the level of market integration of the neighbouring Member States/regions? Second, it estimates the effect of full compliance with the 10% interconnection target on EU wide CO2 emissions by 2020. We find that the 10% rule that aims at improving both the security of supply and market integration position of countries fails to do so. It disregards factors that affect security of supply (availability of generating capacities and load) and with respect to market integration the criterion misses the level of analysis i.e. focusing on countries instead of borders.

Item Type:Monograph (Working Paper)
Uncontrolled Keywords:EU-28, árampiac, határkeresztező, piacintegráció, szén-dioxid
JEL classification:Q40 - Energy: General
Subjects:Energy economy
Funders:DIW Berlin, European Commission, UiO Energy, IDDRI, Hertie School of Governance, Climate Strategies
ID Code:2760
Deposited By: Péter Kotek
Deposited On:23 Mar 2017 14:15
Last Modified:23 Mar 2017 14:15

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