European Electricity strongInfrastructurestrong Planning, Regulation, and.pdfVIP

European Electricity Infrastructure: Planning, Regulation, and Financing CPI Workshop Report Climate Policy Initiative Berlin Karsten Neuhoff Rodney Boyd Florence School of Regulation Jean-Michel Glachant 24|January|2012 European Electricity Infrastructure: January 2012 Planning, Regulation, and Financing Background Investment in European electricity transmission requires facilitation at the European level. The rate at which renewable energy is integrated into the power sector over the next decade will necessitate significant transmission infrastructure expansion and upgrades, with clear pan-European objectives, in order to cope with the new and dynamic flow patterns. Historically, grid planning was primarily carried out at the national level with limited arrangements to share investment costs and assign benefits with a clear and agreed-upon methodology. Now, however, engagement and cooperation at the regional and European level is increasingly important. The processes aim to assist this grid development: (i) the bi-annual Ten Year Network Development Plans as managed by the European association of transmission system operators, and; (ii) the Infrastructure Package, a regulation proposed by the European Commission (EC) which brings together national and European infrastructure financing, planning, and development. Because of the importance of electricity infrastructure to Europe’s energy and climate objectives, CPI Berlin and the Florence School for Regulation hosted an informal workshop on 20 October 2011, supported by the Agency for the Cooperation of