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Transmission Network Investment in Liberalized Power Markets

Transmission Network Investment Across National Borders: The Liberalized Nordic Electricity Market

Scientific Article in English
Reference
Persson, Lars and Thomas Tangerås (2020). “Transmission Network Investment Across National Borders: The Liberalized Nordic Electricity Market”. In Mohammad Reza Hesamzadeh, Juan Rosellón and Ingo Vogelsang (Eds.), Transmission Network Investment in Liberalized Power Markets (557–594). Cham: Springer. doi.org/10.1007/978-3-030-47929-9_19

Authors
Lars Persson, Thomas Tangerås

Editors
Mohammad Reza Hesamzadeh, Juan Rosellón, Ingo Vogelsang

The world’s first multinational electricity market was formed with the creation of the Nordic power exchange, Nord Pool. We analyze the incentives to undertake transmission network investment in the context of the liberalized Nordic electricity market. Welfare improving investment in a multinational electricity market requires accounting for the cross-border effects of capacity expansion. We propose methods to increase voluntary cooperation on international infrastructure projects, with an aim to increase aggregate efficiency and achieve equitable distribution of the gains from market integration.

Thomas Tangerås

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thomas.tangeras@ifn.se