PROJECTS

Sustainable Electricity Trading Roadmap

The problem

Electricity systems from Morocco through Spain, Portugal, France and Germany are physically interconnected; yet the market mechanisms that promote renewable generation are not integrated, and transmission links not adequate for potential trading volumes. These factors limited potentially beneficial trades, such as solar energy being exported from sunnier places to less sunny places.

How we helped

Castalia led a team advising the governments of Germany, Spain, Portugal, France and Morocco on a Roadmap for Sustainable Energy Trade. To do this we identified markets for renewable generation (such as European renewable energy auctions and large corporate consumers of renewable energy); analyzed opportunities for trade to reduce the cost of meeting renewable energy demand; identified transmission constraints hindering trade; assessed costs and benefits to show where transmission upgrades were economically justified; and identified regulatory and market reforms needed to allow sustainable energy trade among all the countries involved.

Impact

In December 2018, the five countries signed a joint declaration to implement renewable energy cross-border corporate power purchase agreements.

The client

World Bank

Our team

David Ehrhardt

David Ehrhardt

Chief Executive
Jonathan Walters

Jonathan Walters

Senior Advisor
Vipul Bhagat

Vipul Bhagat

Senior Advisor

How can we help you?

How can we help you?