High values for cross-border electricity transmission capacity show the EU needs more connections between countries. The European electricity market remains fragmented into national wholesale markets. Most neighbouring countries are connected by transmission lines, but in most cases this transmission capacity is occasionally congested, resulting in different prices in different markets. In other words, one country might have cheaper generation units available, but these are not running because not enough transmission capacity is available to export. In a neighbouring country, meanwhile, more expensive units are needed to meet demand. This situation is inefficient.
Authors
- Published in
- Belgium
