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INTRODUCTION

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"The European electricity<br />

consumption expected to grow<br />

through 2030 at an average annual<br />

rate of 1.4% along with the doubling<br />

of the share of renewable energies,<br />

from 13% to 26% by 2030" -<br />

International Energy Agency (AIE)<br />

AN ECONOMIC PERSPECTIVE: COSTS, TIMES AND<br />

EFFICIENCY<br />

A European Commission report<br />

dating back more than a decade<br />

ago, has estimated that the<br />

development of the basic<br />

interconnection plan by 10% by<br />

2013, would cost about 30 billion<br />

Euros. Later, the Union energy<br />

package approved in 2015,<br />

established the completion of 10%<br />

of electricity interconnection by<br />

2020 with an estimate of about 40<br />

billion euro. The logic would lead to<br />

think that the interconnection plan<br />

is now less expensive. Innovation<br />

and technological progress over the<br />

last decade, as well as a<br />

significantly greater amount of new<br />

infrastructure, should reduce<br />

production costs and capital.<br />

Because then the estimate of the<br />

project is increased? The most<br />

likely answer is that it becomes<br />

more expensive to replace or repair<br />

the infrastructure with the passage<br />

of time (Mirza, 2007). In fact, the<br />

relationship between time and cost<br />

is not linear but exponential. The<br />

problems and weaknesses increase<br />

with time and accelerates the<br />

process of deterioration (Figure<br />

[III]).<br />

The exposed to chemical energy<br />

hardware elements deteriorate and<br />

require regular maintenance. If<br />

aging infrastructure is presented as<br />

a problem for the achievement of<br />

the Union's energy plan, then the<br />

EU is losing large sums of money<br />

with the extension of the project.<br />

A recent International Energy<br />

Agency report estimated that<br />

investments in the energy sector<br />

made after 2020, would cost 4.3<br />

times more than those made before<br />

2020. In short, as soon as the<br />

European states will decide to<br />

complete this project, the better<br />

the investment. This is because the<br />

investments made Twenty-five<br />

years now, will have to compensate<br />

for the aging of infrastructure and<br />

lack of savings on consumption<br />

with low emissions.<br />

However, infrastructure investment<br />

should not be thought of as sunk<br />

costs. In fact, the returns on these<br />

projects outsource the cost with a<br />

legitimate savings, since they use<br />

energy and a more sustainable<br />

energy transmission for the<br />

international network.<br />

9

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