Regional Cooperation Potentials in the European Context: Survey and Case Study Evidence from the Alpine Region

Clemens Gerbaulet, Casimir Lorenz, Julia Rechlitz, Tim Hainbach
2014 Economics of Energy & Environmental Policy  
Executive Summary The German energiewende is not limited to national borders, but is taking place in the European context of the emerging integrated market, with the neighboring countries being particularly affected. By the very nature of the interconnected European electricity system, the reform process in Germany has effects on the broader European market, such as price effects, cross-border flows, or the sharing of backup capacity; in return, the German electricity sector is affected by
more » ... is affected by developments in the neighboring countries, be they EU-members or not. In particular the non-EU neighbors, Switzerland and Norway, have a high potential impact on the German electricity system. Coordinating investments in generation, renewables and transmission will be accompanied by the challenge of equitable decision making regarding the distribution of the costs and benefits of these investments. Spillover effects driven by investments in one country can have positive or negative effects on neighboring countries. For example, renewable support in Germany can lead to lower spot market prices that benefit customers outside of Germany. The coordination of electricity market segments between countries or regions potentially could reduce the required investment cost by reducing the total need for infrastructure and allocating resources more efficiently. Cross-border cooperation can take place at two levels, the European level of the emerging internal energy market under an overarching institutional framework, and the regional level of neighboring countries working together by developing tailor-made
doi:10.5547/2160-5890.3.2.cger fatcat:fvg7tdeywrbotfvafs2ha3pbke