Event detail
7 October 2020
Cross-border cost allocation in the Mediterranean
MEDREG and Med-TSO joined forces in organising a webinar on "Cross-border cost allocation for electricity projects in the Mediterranean"on 7 October 2020. Deciding on cross-border cost-sharing involves extensive work on the interests of the countries involved. On the other hand, the basis for a transparent and comprehensible framework for project evaluation must be established, if only to enable cross-border dialogue. For these reasons, MEDREG and Med-TSO have identified the need for joint work on the subject.
Cross-border Cost Allocation (CBCA) is a financial tool used to facilitate the implementation of Projects of Common Interest. It represents a subsequent step towards the Cost-Benefit Analysis (CBA) of interconnection projects between countries. While the CBA is aimed to assess, identify and quantify the positive trade-off of interconnection development for the involved systems, the challenge remains on how to distribute and assign the costs –and risks of this development. Cross-Border Cost Allocation responds to this challenge. As several ambitious interconnection projects emerge in the Mediterranean region, it becomes increasingly relevant to address the development of a CBCA methodology that can accommodate the interests and characteristics of this region.
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