What is the impact of the regulatory framework for transmission investments on the cost of renewable energy in the EU? Under the current regulatory framework transmission investment planning is mainly done at a national level. This may result in suboptimal transmission investments, i.e. maximising national rather than European welfare, as cross-border projects initiated by one member can be vetoed or delayed by the other member states involved. However, investments in transmission infrastructure are important to enable cross-border renewable energy trade. Why? Because such trade would help reduce the costs of achieving the national targets for renewable energy. So, the question is whether the current imperfect regulatory framework is actually a problem?