Energy Integration in European Power Sector

Abstract

This paper provides essential background of European power sector and discusses the theoretical background for its integration. Our work employs real-life statistics on the state of integration in order to find out what future development might be in place for this key sector of European economy. It can be shown that while some interest groups are losing on integration, others win. This issue enables us to discuss the delegation of control over the power market delegated to European entities. Our results demonstrate that there are considerable economic gains stemming from integration that are subjected to price variations and efficiency in using the power. Moreover, we explain how the power market on the EU-level implements reforms that might lead to the more integrated European power network.

Keywords

• economic integration, energy economics, European Union, national power exchange