The regulatory regime applicable to electricity interconnectors with third countries

Interconnectors with third countries are currently outside the scope of the Electricity Directive and of the Electricity Regulation. Therefore, the provisions contained in these acts regarding third-party access and tariffs, unbundling, the destination of congestion income and capacity allocation do not apply to interconnectors with third countries. The regulatory regime introduced for PMIs by the revised TEN-E Regulation is unclear, as it is based on an application mutatis mutandis of a regime defined for PCIs, which are infrastructure project located within the EU, to which the provisions of the Electricity Directive and of the Electricity Regulation do apply. However, it seems that interconnectors with third countries can apply for PMI status and in fact several interconnectors with third countries have been granted such a status. Two possible models can be foreseen regarding the transport infrastructure needed to import electricity, and, in particular, renewable-based electricity, from third countries into the EU: • the ‘interconnector’ model, in which a cross-border transmission infrastructure is developed independently from the deployment of renewable-based electricity generation capacity in the third country. The interconnector is developed by TSOs or by other project promoters; • the ‘integrated commercial project’, comprising a renewable-based generation plant, or a number of such plants connected to a dedicated renewable electricity ‘island’ network in the third country, but not connected to that country’s network, and an interconnector linking the plant or the dedicated renewable ‘island’ network to the EU network and market. The renewable-based generation plant(s) and the interconnector are developed, owned and operated by a single commercial entity or by several commercial entities operating in coordination. These models could represent blueprints for the development of (inter)connections between the EU and third countries. Their implementation would require an agreement between the EU and the third country concerned.