Internal Electricity Market

The immediate consequence of this proposal, and potentially one of its strongest selling points for European decision-takers, is that the Supergrid facilitates the creation of a functioning internal market for electricity. Indeed, success is arguably dependent on an internal market which, in itself, would be a boon for the European economy.

Despite the demonstrable advantages of a functioning internal market for electricity, it remains a fact that the Member States have been unable to agree on the necessary steps needed to remove obstacles to trade. One such obstacle is, of course, the lack of interconnection between national markets, which results in less than 10% of Europe’s electricity being traded across borders.

A feature of the Supergrid is that it would automatically provide inter-connection between all the national markets involved. This inter-connectivity could be used for trading all sources of electricity, thereby enhancing the economics and facilitating the integration of electricity markets.

By creating interconnection in green electricity and multiplying interconnection in all sources of electricity, the Supergrid would overcome one of the biggest defects of the Internal Market – the lack of competition in electricity.