Electric Networks and Energy Transition in Europe

Summary:

After a century of close development between power generation facilities and networks, the liberalisation of the electricity sector has broken this link in Europe. Long-distance transmission networks now play a key role in stimulating competition between generators by giving consumers access to remote power generation facilities.

Consequently, a tight European regulatory framework is applied to these networks, in order to monitor their mandate and income. However, it does not impose any common rules, so that tariff disparities might adversely affect competition. Today, "market coupling" facilitates intra-European electricity trading, despite the relative scarcity of cross-border connections between some countries in Western Europe. The rules are more heterogeneous for the distribution networks, which provide power delivery within a small area.

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