How to overcome financial barriers to the participation of Europe in a global electrical grid? A feasibility study on a ‘Global Grid’
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- A global electrical grid has been pointed out by several studies to be a solution to decarbonize energy on a global scale. While some technical challenges remain, experts agree the strongest barriers are rather political, regulatory and financial. This master thesis first reviews literature interconnectors economics. Various stakeholders of the electricity sector identified during the literature review are interviewed in the practical part. The main financial issue stems from the fact that prices converge as grids merge, resulting in reducing long-term profitability. However, financial barriers happen to be much less problematic compared to regulatory and political barriers.