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16 June 2005 - Much needed power interconnections linking European countries are not being built at a fast enough pace due to administrative delays, according to the head of France's electricity operator.
André Merlin, head of RTE, France's electricity operator, said the lack of "administrative authorisation" represented the sole limit on the number of new interconnector projects in Europe.
Speaking in Paris at a meeting to discuss the role of power grid operators in Europe he said, "This explains the difficulty and delays we have had with new interconnectors. If we had the authorisation we would be investing."
Grid interconnections require considerable consultation and permitting and operators complain of delays in approving new interconnector projects of between 15 and 20 years.
At the moment free trade in energy is partially hampered by significant congestion on links between countries such as Germany, the Netherlands, Belgium, Spain, France and Italy. France has recently approved a major interconnector project linking it to neighbouring countries.
Increasing interconnector capacity would improve energy efficiency and enable greater energy trading. The EU estimates that cross-border power exports could account for between 5 and 30 per cent of electricity demand. Currently, much of the existing capacity is reserved for long-term contracts negotiated by former monopolies before markets began to open up to competition, although the legitimacy of some of these agreements is being challenged under EU law.
According to the EU, imports through interconnectors could potentially satisfy between 5 and 30 per cent of electricity demand. However, some 40-60 per cent of existing capacity is reserved for long-term contracts negotiated by former monopolies before markets began to open up to competition.
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