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Super-Grid or Grid-Lock? Politics and Economics of Cross-Border Electricity Infrastructure

Kacper Szulecki
Norwegian Institute of International Affairs
Kacper Szulecki
Norwegian Institute of International Affairs

Abstract

The common European electricity market requires both market coupling and actual transmission grid expansion, including trans-border interconnectors. Although benefits of increased interconnectivity are acknowledged by stakeholders, expansion of interconnectors is slow, or stalled. This paper gathers insights on the reasons behind this “grid-lock” drawing on several examples of trans-border projects across Europe, followed by an in-depth case study of the German-Polish border. Two interconnectors already exist there, but trade on these lines is blocked by unplanned electricity flows. A third interconnector has been on the table for years, with little progress despite of mutual declarations of support. Drawing on the existing literature on the topic of grid expansion we identify four hypothetical explanations for the grid-lock: inadequate financing; conflicting interests of stakeholders; problems of governance and administration; and psychological/discursive factors. We evaluate all four using the empirical material gathered through document analysis and stakeholder interviews conducted in Germany and Poland.