ABSTRACT
The European Union (EU) and North America are the most advanced regions for electricity market integration. The EU electricity market1 is fully interconnected and operates under six regional synchronous (50 Hz) operating zones or grids. The EU and North America can serve as global models of highly functional, cross-border electricity coordination. Both regions have more than a century of experience in cross-border electricity cooperation, interconnection, and trade. They exhibit examples of successful coordination of power system operations, power system development and expansion policies, and institutional/regulatory setups to govern the power systems. This chapter presents the historical and current status of power system integration in Europe and North America, followed by discussions of economics and investment models. It also presents a regulatory framework governing the power sector interconnection in Europe and North America. Issues and challenges faced by these integrated markets are highlighted.
