The document discusses cross-border cooperation in the electricity sector through the Nordic example. It outlines the history of interconnections between Nordic countries dating back to 1963, which grew over time through the establishment of Nordel in 1992 to facilitate cooperation between transmission system operators. Nordel later joined ENTSO-E and helped coordinate the decarbonization of the power sector in the region through increasing renewable energy and electrification while maintaining a reliable grid through 2050. The context of cooperation has become more complex over time with new drivers like emissions pricing and public demand, as well as obstacles around political will, governance capacity, and handling interdependencies across borders.

1. CROSS-BORDER COOPERATION IN
THE ELECTRICITY SECTOR -
THE NORDIC EXAMPLE

2. In the very beginning …
1
Pearl Street Station
started generating
electricity on
September 4, 1882,
serving an initial load
of 400 lamps at 85
customers.

3. The development of interconnection capacity in the Nordic region
2Source: Annual report 1998, Nordel

4. The history of Nordel
3
2000-2009
TSOs
1992-2000
Competition-
unbundling
1963-1992
Vertical
integration
Pre- Nordel
interconnections
Nordel ENTSO-E, RG Nordic
Source: Sweco, 2013

5. Nordel’s organisation in 1992
4Source: Nordel

6. The electricity transmission grid in the Baltic Sea Region
5

7. How is the decarbonisation of power supposed to play out?
6
2010 2020 2030 2050
50%
50%
20%
80%
80%
20%
3.3701 TWh
4.900 TWh
Source: ECF – Roadmap 2050
1: Eurostat (online data code: nrg_105a)
EU-27, Norway and Switzerland
RES Thermal
New wave of electrification - from 20 to 35/40% of end use

8. 7
The context – interaction has grown more complex over time
Basic electrification
+ Play a major role in
industrialisation/automatisation
+ A tax base
+ Open up for competition
+ Resource efficiency seen from
society’s perspective
6/5/2014 Food for thought 7
Drivers
Target forced on markets
Pricing emissions
Subsidies
Emission standards
Governance
Organising markets
Infrastructure
Public demand
Technology breakthroughs
Obstacles
Low-quality interventions adding costs
Political inability to defend long-term benefits
from “cost-attacks” by pressure groups
Lack of governance capacity to handle the
transition
Lack of support from the main stream
Inability to handle interdependencies
Volume disease problems
A weak Europe