Portal de Periódicos da CAPES

Connecting Mediterranean countries through electricity corridors: New Institutional Economic and regulatory analysis

2015; Elsevier BV; Volume: 32; Linguagem: Inglês

10.1016/j.jup.2015.01.001

1878-4356

Haikel Khalfallah,

Climate Change Policy and Economics

A super grid connecting the two shores of the Mediterranean could help Europe meet its targets for integrating renewable energy. This paper assesses the business models for building a platform for wholesale renewable energy trade via electricity corridors linking the two regions of the Mediterranean basin. We demonstrate that the optimal framework for designing the corridor project is a long-term contractual agreement to coordinate bilaterally the necessary investments. Furthermore a hybrid governance structure requiring only limited regulatory adaptation seems to be the most efficient structure for facilitating investment in the corridor's infrastructure.