Work

An incentivized cooperative scheme for transmission expansion in a 100% renewable Europe

Year: 2026

Type: article

Abstract: In the age of transformative European initiatives like the Green Deal, the electrification surge in mobility, heating, and services stands as a beacon towards carbon neutrality. This study illuminates the pivotal role of electrical grid interconnection in this monumental endeavor. Through a comparative analysis between isolated grids and an interconnected European system, we unveil the extraordinary potential of a collaborative grid: a 30 EUR/kWh (18%) reduction in electricity costs and a 12 gCO 2 eq/MWh (24%) decrease in environmental impact. The equitable distribution of this economic advantage across European nations allows us to establish the price nations ought to pay for the security of supply (96 EUR/MWh for Belgium) or, alternatively, the rightful compensation for providing cost-effective renewable energy (75 EUR/MWh for Sweden). Overall, the collaborative grid ushers in remarkable cost savings of 130 billion EUR annually, amounting to 174 EUR per European citizen. Furthermore, uncertainty analysis, grounded in a comprehensive literature review, reinforces the robustness of our findings. The transition towards a 100% renewable, interconnected European electricity grid over the next two decades necessitates an investment of 7 trillion EUR. In annual terms, this represents a manageable 4.2% of the European GDP. The payoff, however, is colossal: an 85% reduction in the environmental footprint of the European economy, equating to 2000 Mt of annually avoided CO2 emissions–a significant stride towards combating global climate change. • A fully renewable European power system requires political coordination and grid design, not only technological advances. • Continental high-resolution simulations show that full European grid interconnection yields major system-wide benefits. • Grid integration lowers levelized electricity costs by 18% and lifecycle emissions by 24% across Europe. • Cross-border cooperation reduces electricity storage requirements by more than 45% without adding new technologies. • A new economic framework quantifies energy security value and enables fair cost–benefit sharing among European countries. • Uncertainty analysis and sector coupling strengthen investment insights and provide a replicable decarbonization blueprint.

Source: Applied Energy

DOI: 10.1016/j.apenergy.2026.127415

Authors: Alessio Santecchia, Ivan Kantor, Rafael Castro-Amoedo

Institutions: École Polytechnique Fédérale de Lausanne, Concordia University, Instituto Superior Técnico, Centro de Recursos Naturais e Ambiente

Language: English

Topic: Integrated Energy Systems Optimization

Subfield: Electrical and Electronic Engineering

Field: Engineering

Domain: Physical Sciences

SDGs: Industry, innovation and infrastructure, Climate action, Affordable and clean energy

Open Access status: hybrid

Estimated APC paid: $4,430