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    The implication of the European inter-TSO compensation mechanism for cross-border electricity transmission investments

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    Publication type
    Journal article
    Author
    Hadush, Samson Yemane
    De Jonghe, Cedric
    Belmans, Ronnie
    Publication Year
    2015
    Journal
    International Journal of Electrical Power & Energy Systems
    Publication Volume
    73
    Publication Issue
    December
    Publication Begin page
    674
    Publication End page
    683
    
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    Abstract
    An efficient cross-border investment and well-designed markets and regulatory instruments are crucial prerequisites to the creation of a fully functional European internal electricity market. One of the prominent regulatory measures taken to speed up the creation of the internal market was to abolish tariff pancaking by replacing cross-border tariffs with an Inter-Transmission System Operators Compensation (ITC) mechanism through which transmission system operators (TSOs) can compensate each other. In this study, the implication of introducing such mechanism on the cross-border investment outcome is explored. The results indicate that the current ITC mechanism is loosely linked to the cross-border investment decisions of TSOs. In addition, the study concludes that factors such as the ITC fund size and the number of participating TSOs can influence the investment outcome.
    Keyword
    Energy Markets, Energy Networks, Energy Supply Chains, Entrepreneurship
    Knowledge Domain/Industry
    Special Industries : Energy
    Entrepreneurship
    DOI
    10.1016/j.ijepes.2015.05.041
    URI
    http://hdl.handle.net/20.500.12127/5336
    ae974a485f413a2113503eed53cd6c53
    10.1016/j.ijepes.2015.05.041
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