Transparent methods to support infrastructure investments

The transmission grids have an important role in the development of the internal electricity market, and as a tool to fulfil EU:s ambitious energy policy, known as 20-20-20 in 2020. The key issue is how to get the national TSOs to broaden their scope in order to realize the full potential of trade across borders. The TSOs need to get the incentives to take an active part in the foreseen structural change in electricity generation, which will require actions both nationally and across borders. In this paper we focus on the importance of a broadened international scope when planning the future development of the European transmission grids. We exemplify our choice of method by some empirical findings from the Nordic electricity market.