The Association of Mediterranean Energy Regulators (MEDREG) published on February 1 a report, which calls for a new approach toward the assessment of electricity infrastructure investments in the Mediterranean region.
The report, entitled Regulatory options for the stimulation of infrastructure investments – Fact-finding and review of challenges in investment in infrastructure, assesses the level of development of power systems and identifies priorities and challenges for the stimulation of relevant investments in the Mediterranean region.
MEDREG called for clarifying the institutional architecture at the national level, improving investment-planning capacity, ensuring a proper level of transparency and know-how and building upon regulators’ competences.
While in the EU the market design and the level of development of electricity markets makes it possible to evaluate and plan investments of interconnection projects according to wholesale prices, in the wider Mediterranean region such an approach is much more difficult due to the lack of harmonisation of system operation and of efficient cross-border integration, MEDREG said.
In addition, the geographical distribution of population around the seashore, the lack of reserve margins on the generation side and the sustained increase of electricity consumption makes it even more complex to develop a harmonised approach to network development.
Moreover, the assessment of national situations carried out by MEDREG members indicated that a more integrated energy market would increase the energy efficiency, reduce the electricity environmental footprint and would primarily benefit the customers and citizens.