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p. 4 of 9 BACK | NEXT Home Background Energy Challenges in GMS Rationale for a Regional Strategy Objective and Scope Methodology Cost and Financing News and Events Project Team

Rationale for a Regional Strategy

Developing a regional energy strategy is considered necessary for several reasons. First, the geography of energy supply options does not correspond to national boundaries. Often, there are opportunities to reduce overall energy costs by exploring supply options beyond borders. Second, individual markets are at times too small to justify large-scale investments needed to achieve scale efficiency. Third, cross-border energy supply provides diversification of sources and this is vital for energy security. Finally, the energy sector has environmental implications beyond national boundaries, which need to be integrated in energy planning to achieve sustainable development.