Reform of the EU Electricity Regulation: Background, early implementation, consequences for cross-border trade in the internal electricity market

FNI Report 3/2021. Lysaker, FNI, 2021, 41 p.

Grid congestion has been a major problem constraining trade in the EU’s internal electricity market (IEM). The recently reformed EU Electricity Regulation (EU) 2019/943 aims at improving conditions for cross-zonal trade. This report analyses the making and early implementation of reformed rules, focusing on a new provision requiring European transmission system operators to make at least 70% of capacity on interconnectors available for cross-border trade. We then assess the opportunities and challenges for the Norwegian trade-based power policy strategy emerging from how this new rule is implemented in Norway’s grid-connected neighbouring countries. An mportant objective of this strategy is to maximize the value of Norwegian power resources through cross-border trade in the EU IEM.

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