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Regulatory Frameworks for Grid Investment

Abgeschlossenes Projekt




Karsten Neuhoff


15. Juni 2012 - 28. Februar 2013



Transmission can link individual renewable energy sources into a valuable energy portfolio. We explore whether and what regulatory developments are required to unlock the renewable energy portfolio of North Africa - for local use and for international exchange. The project therefore has to address three main questions.

First, what regulatory and institutional frameworks have been effective to facilitate similar grid projects in the past? The case studies - complemented with insights from regulatory theory and literature review - will be used to identify key requirements and to draw lessons for the development of regulatory frameworks.

Second, what regulatory and institutional frameworks exist in selected EU and MENA countries and at the European as well as at the EUMENA (e.g., Medreg) level to facilitate the investment of interconnectors and their integration with adjacent networks, and to allow for the long-term hedging of transmission costs necessary to enable long-term sales of power produced?

Third, what options exist to further develop regulatory frameworks at the national level (EU and MENA countries) and EU as well as EUMENA level so as to enable the grid expansion and transmission cost hedging necessary for the import of power from desert power plants into Europe? The analysis will include the development under the third energy package including the ten year network development plan by ENTSO-e as well as the EU infrastructure package. It will equally explore opportunities to coordinate infrastructure development through the national renewable energy action plans in combination with the flexibility mechanism under the EU Renewable Energy Directive.

"Policies for International Transmission Investment: Unlocking North Africa's Renewable Energy Portfolio - for Local Use and International Exchange", Final Report by Karsten Neuhoff, Loredana Sasso, Christian Winzer

Please find the project report here.

DIW Team