Interconnecting an isolated electricity system to the European market: The case of Malta

Article Article scientifique Article Interconnecting an isolated electricity system to the European market: The case of Malta eng 2016 author Ries Jan 816174 author Gaudard Ludovic 583322 author Romerio-Giudici Franco 29660 1-14 10.1016/j.jup.2016.03.001 0957-1787 http://linkinghub.elsevier.com/retrieve/pii/S0957178716300698 The long-term European Union (EU) energy policy increasingly requires member countries to reform existing power systems, including those of small island states. These are commonly isolated electricity systems that rely heavily on imported fossil fuels. Interconnections with mainland power systems are an alternative to offset the exposure to volatile fuel prices. This paper studies the 200-MW (MW) subsea transmission cable between the EU island member state of Malta and Sicily that was inaugurated on April 2015. Our main purpose is to examine whether and to what extent Malta's vulnerability to distinct oil price scenarios can be overcome with this new interconnector. We describe the process used to simulate the merit order for both Malta's isolated and interconnected electric generation setup. The algorithm used provides the average electricity spot price and economic scarcity rent of electricity im- ports and exports. The main finding is that the Malta-Sicily interconnector does not necessarily lower electricity prices for Malta's consumers. However, some scenarios, notably the incorporation of natural gas in Malta's future generation portfolio, achieve winewin situations for both consumer and supplier. The Malta case study shows that cable impacts depend on the installed generation capacity, oil price, and market design. Isolated electricity systems Interconnection Merit order Grid Malta Italy Dewey 330/650 Dewey 333.7-333.9 18 Institut des sciences de l'environnement 0DB 9 Faculté d'économie et de management S false 651 Energie, politique et économie Utilities policy 40 dd5a4fb2-a25e-4c98-9839-14aa31083826 Article (Published version) Restricted 1-s2.0-S0957178716300698-main.pdf 1649145 application/pdf restrictedAccess Centres et instituts / Institut des sciences de l'environnement Faculté d'économie et de management

Title	Published in	Access level	OA Policy	Year	Views	Downloads

Interconnecting an isolated electricity system to the European market: The case of Malta	Utilities policy			2016	604	3

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Ries, Jan