Electricity Network Regulation in the EU
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Electricity Network Regulation in the EU

The Challenges Ahead‎ for Transmission and Distribution

9781786436085 Edward Elgar Publishing
Edited by Leonardo Meeus, Vlerick Business School, Belgium and Florence School of Regulation, European University Institute and Jean-Michel Glachant, Holder of the Loyola de Palacio Chair on EU Energy Policy and Director, Florence School of Regulation, European University Institute, Italy
Publication Date: 2018 ISBN: 978 1 78643 608 5 Extent: 192 pp
The UK model of incentive regulation of power grids was at one time the most advanced, and elements of it were adopted throughout the EU. This model worked well, particularly in the context of limited investment and innovation, a single and strong regulatory authority, and limited coordination between foreign grid operators. This enlightening book shows that since 2010 the whole context has changed and regulation has had to catch-up and evolve. The EU is entering a wave of investment, and an era of new services and innovation which has created growing tensions between national regulatory authorities in terms of coordinating technical standards and distribution systems. This is being played out against an increasingly disruptive backdrop of digitzation, new market platforms and novel business models.

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Critical Acclaim
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The UK model of incentive regulation of power grids was at one time the most advanced, and elements of it were adopted throughout the EU. This model worked well, particularly in the context of limited investment and innovation, a single and strong regulatory authority, and limited coordination between foreign grid operators. This enlightening book demonstrates how the landscape has changed markedly since 2010 and that regulation has had to work hard to catch up and evolve.

As the EU enters a wave of investment and an era of new services and innovation, this has created growing tensions between national regulatory authorities in terms of coordinating technical standards and distribution systems. This is being played out against an increasingly disruptive backdrop of digitization, new market platforms and novel business models. Electricity Network Regulation in the EU adopts a truly European approach to the complex issues surrounding the topic, focusing on the grey areas and critical questions that have traditionally been difficult to answer. Incentive regulation and grids are addressed simultaneously at the theoretical and practical level, providing the reader with fundamental concepts and concrete examples.

This timely book is an invaluable read for energy practitioners working in utility companies, regulators and other public bodies. It will also appeal to academics involved in the world of electricity regulation. The book utilizes language that would make it suitable for interdisciplinary students, including engineering and law scholars.
Critical Acclaim
‘The book can be recommended as a source of inspiration for those who wish to fix some EU internal energy market problems (namely legislators and regulators), as well as for those who wish to push further research on electricity regulation.’
– Jorge Vasconcelos, The Energy Journal

‘No one will today argue the fact our European Energy System is at a critical tipping point of transformation to enable the expected massive penetration of competitive renewables – largely distributed – while leveraging new citizen engagements towards climate objectives. In that context it has become critical to think “outside the box” when it comes to future market design and regulation, for which this book offers a unique perspective of current challenges and obstacles while providing strategic directions for the next regulatory innovations.’
–Laurent Schmitt, Secretary General at ENTSO-E, Belgium
Contributors
Contributors: P. Bhagwat, J.-M. Glachant, S.Y. Hadush, L. Meeus, V. Rious, N. Rossetto, T. Schittekatte
Contents
Contents

Introduction

Part 1 Incentive Regulation: aligning the interests of the operators with the interests of their customers
1. The British reference model
Vincent Rious and Nicolò Rossetto

2. Continental incentive regulation
Vincent Rious and Nicolò Rossetto

Part 2 Seams issues: one market, one system, but many operators and authorities
3. TSO-TSO seams issues
Jean-Michel Glachant

4. DSO-TSO seams issues
Leonardo Meeus and Samson Yemane Hadush

Part 3 Grey areas: the border between the market and the grid
5. Classical grey areas since the start of the internal market
Leonardo Meeus and Pradyumna Bhagwat

6. New grey areas at the frontiers of European power grids
Leonardo Meeus and Tim Schittekatte

Index


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