We use the multi-scale power system model LIMES-EU+ to explore coordinated long term expansion pathways for Renewable Energy (RE) generation, long distance transmission and storage capacities for the power sector of the Europe and Middle East/North Africa (MENA) regions that lead to a low emission power system. We show that ambitious emission reduction targets can be achieved at moderate costs by a nearly complete switch to RE sources until 2050, if transmission and storage capacities are expanded adequately. Limiting transmission capacities to current levels leads to higher storage requirements, higher curtailments, and to an increase in temporal and spatial electricity price variations. Results show an escalation of electricity prices if emission reductions exceed a critical value. Adequate expansion of transmission and storage capacities shift this threshold from 70% to 90% emission reductions in 2050 relative to 2010. (C) 2012 Elsevier Ltd. All rights reserved.