Key challenges in crossborder interconnector finance

ABSTRACT

This paper assesses causes for, and challenges related to, the funding gap in infrastructure required for a large scale increase of renewable energy in the European energy mix, specifically crossborder interconnectors to transport renewable electricity from areas with high renewable energy potential and production to centres of energy consumption. We identify eight barriers that need to be addressed in order to make investment in interconnectors more attractive. We delineate both technological and governance/legislative barriers to investments in this area. Our analysis is based on a scoping literature review and a workshop that was held in London involving finance and legal experts.

KEYWORDS:

• Energy transition
• climate change
• investment barriers
• funding gap

Acknowledgements

The research was funded by the European Union’s Horizon 2020 research and innovation program under grant agreement No. 691287: MEDEAS – Modelling the Renewable Energy Transition in Europe.

Disclosure statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by the European Commission [grant number 691287].