The present paper aims at investigating the impact of the emerging Voltage Source Converter-based High Voltage Direct Current (VSC-HVDC) technology on the liberalised power system in Europe. In particular, focus is on key technical, economic, and environmental features of VSC-HVDC. A techno-economic analysis on a European priority interconnection project (i.e. the planned tie line Poland-Lithuania) is undertaken, so as to compare the economic and environmental sustainability of an investment in VSC-HVDC with other options.
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