Advancing the integration of neighbouring power markets is widely identified in the literature as a key enabler of power system efficiency, flexibility, and variable renewable energy integration. Nonetheless, the existing economic literature offers only partial explanations of why greater market integration is difficult to achieve in the real world despite its evident advantages in terms of overall welfare, supply security, and competitiveness. It is argued that power market coupling is an inherently political process involving significant institutional contestation and adaptation, and hence requires a more nuanced political analysis to be fully understood. This paper adds to the existing literature by conducting a comparative political economy analysis of electricity market coupling processes in Britain, Italy, and California, spanning from 2013 to 2021. It seeks to unpack how differences in the political economy contexts of these jurisdictions influenced the electricity market coupling process with their respective neighbouring systems. The analysis draws on 86 key policy documents, and 53 in-depth interviews with senior power system stakeholders in the three jurisdictions. Results widely align with claims in the political economy literature that market coupling outcomes do not simply reflect the most efficient solution. While all three jurisdictions have shown a commitment to enhance regional integration of short-term wholesale energy markets, there is considerable variation in policy outcomes, particularly the extent to which different segments of the market have been coupled. These differences can largely be attributed to variations in the political economy contexts of the three jurisdictions, including multi-level governance structures, diplomatic relations with neighbouring countries, and interactions with national political priorities and contexts. The main implications for the governance of electricity market coupling are discussed in the conclusion.
Acceleration of the green transition is one of the prime overarching goals of the European Union, in which a specific role is allocated to renewable-based power generation. This paper examines the impact of energy transition plans on the long-term electricity security levels of the Visegrad Countries (V4). The analysis includes a calculation of Simplified Supply-Demand Index (SSDI) scores based on the official forecast of the European Network of Transmission System Operators for Electricity (ENTSO-E). Results indicate that the level of electricity security is expected to diminish in the V4 countries. Simulation-based sensitivity analyses were also conducted to highlight that SSDI scores are especially sensitive to the vulnerability of supply, infrastructure, and demand categories within the composite index.