Business Model for Cross-Border Interconnections in the Mediterranean basin

The existing Mediterranean energy infrastructure  was  mostly designed and built  more than 50  years ago and were based on the national-level energy policies and security of supply priorities of the time. Since  then,  the  energy  landscape  has  changed  dramatically.  Now,  national  dynamics  must  be harmonised with regional and global developments and policies. In particular, climate change policies and energy  security  measures  have  greatly   impacted  the  existing  energy  infrastructures  and transmission grids, and are expected to continue doing so in the foreseeable future. In order to achieve the  national  and  regional  energy  policy  objectives,  the  infrastructural  endowment  will  need  to  be updated in most countries of the region. For the electricity grid, a combination of short-term goals and long-term  patterns  will  guide  development  of  the  transmission  network  in  the  coming  decades. Reinforced interconnection between Member States (MS) in the EU and South and East Mediterranean Countries (SEMCs)  are  required  in  order  to  achieve  more  secure  and  more  sustainable  energy systems.  This  is  also  compatible  with  other  energy  policy  objectives.  For  example,  the  EU member states  are  required  to  comply  with  the  completion  of  an  integrated  Internal  Energy  Market  (IEM)  by 2020.

Rahmatallah Poudineh, Senior research fellow, Oxford Institute for Energy

Alessandro Rubino,  Research Fellow in Economics, University of Bari

Oxford Institute for Energy Studies

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