First mover disadvantages? A brief inquiry into investment dynamics in wind power and grids

The foreseen expansions of wind power in Northern Europe induce the need for a corresponding and supporting development of the transmission grid. Further, large-scale integration of intermittent electricity generation stresses the need for access to reserves for balancing and possible grid reinforcements. A socioeconomically optimal development requires close attention to dynamics between grid and generation development. This paper maps some of the important elements in this context, and proposes necessary policy alterations. Specifically we explore the discrepancy in planning horizons for transmission reinforcements on the one hand and the political goal on expanding RES with special focus on wind on the other. We approach this by qualitatively assessing some empirical findings from the North European region on grid development and integration of wind power.