Smart Regulation for Smart Grids

Climate change and security of supply policies are driving us towards a decarbonization of the electricity system. It is in this context that smart grids are being discussed. Electricity grids, and hence their regulatory frameworks, have a key role to play in facilitating this transformation of the electricity system. In this paper, we analyze what is expected from grids and what are the regulatory tools that could be used to align the incentives of grid companies and grid users with what is expected from them. We look at three empirical cases to see which regulatory tools have already been applied and find that smart grids need a coherent regulatory framework addressing grid services, grid technology innovation and grid user participation to the ongoing grid innovation. The paper concludes with what appears to be a smart regulation for smart grids.Regulation, innovation, electricity, grids, transmission, distribution

Electricity liberalisation: the beginning of the end

The debate is beginning to shift a little on electricity liberalisation and privatisation, but there are many vested interests that will continue to promote the idea

The gas chain: influence of its specificities on the liberalisation process. NBB Working Papers. No. 122, 16 November 2007

Like other network industries, the European gas supply industry has been liberalised, along the lines of what has been done in the United Kingdom and the United States, by opening up to competition the upstream and downstream segments of essential transmission infrastructure. The aim of this first working paper is to draw attention to some of the stakes in the liberalisation of the gas market whose functioning cannot disregard the network infrastructure required to bring this fuel to the consumer, a feature it shares with the electricity market. However, gas also has the specific feature of being a primary energy source that must be transported from its point of extraction. Consequently, opening the upstream supply segment of the market to competition is not so obvious in the European context, because, contrary to the examples of the North American and British gas markets, these supply channels are largely in the hands of external suppliers and thus fall outside the scope of EU legislation on the liberalisation and organisation of the internal market in gas. Competition on the downstream gas supply segment must also adapt to the constraints imposed by access to the grid infrastructure, which, in the case of gas in Europe, goes hand in hand with the constraint of dependence on external suppliers. Hence the opening to competition of upstream and downstream markets is not "synchronous", a discrepancy which can weaken the impact of liberalisation. Moreover, the separation of activities necessary for ensuring free competition in some segments of the market is coupled with major changes in the way the gas chain operates, with the appearance of new markets, new price mechanisms and new intermediaries. Starting out from a situation where gas supply was in the hands of vertically-integrated operators, the new regulatory framework that has been set up must, on the one hand, ensure that competitive forces can be given free rein, and, on the other hand, that free and fair competition helps the gas chain to operate coherently, at lower cost and in the interests of consumers, for whom the stakes are high as natural gas is an important input for many industrial manufacturing processes, even a "commodity" almost of basic necessity

Evaluating network services in Europe: a critique of the EC Evaluation of the Performance of Network Industries

A critique of the EC evaluation of network industries and the Copenhagen economics report on the impact of liberalisation

An indicator-based assessment framework to identify country-specific challenges towards greener grow

The paper sets the basis for an indicator-based analytical framework to assess Member States' policies to promote "green growth".An illustrative application of this new analytical framework reveals that it can be used to provide a nuanced economic assessment of Member States' environmental performance. This framework can serve to highlight country-specific strengths in addressing environmental challenges in a way that best fosters growth and jobs. To prepare for future economic policy monitoring at the EU level, a test was also run to analyse performance in various dimensions of environmental policy in combination with information about macroeconomic performance.Overall, this framework can contribute to identify country-specific challenges to create new sources of green growth; it may therefore serve to encourage relevant structural reforms bringing about a competitive greener economy.europa european commission institutions news calendar organisation commissioners president recruitment contact services european union eu

Banking on Shared Value: How Banks Profit by Rethinking Their Purpose

This paper articulates a new role for banks in society using the lens of shared value. It is intended to help bank leaders, their partners, and industry regulators seize opportunities to create financial value while addressing unmet social and environmental needs at scale. The concepts included here apply across different types of banking, across different bank sizes, and across developed and emerging economies alike, although their implementation will naturally differ based on context

Toward a Smart EU Energy Policy: Rationale and 22 Recommendations

We are in desperate need of an EU Energy Policy. The facts are that, yes, there is indeed an EU Energy Policy. It is a policy based on a vision, a vision with three components. The policy is aiming for “markets, competition and efficiency”, it is equally focussing on “a sustainable energy economy”, and thirdly, it wants to “secure the EU’s energy supply”. Three objectives, three separate action lines. Balancing the three objectives in an integrated approach is challenging and difficult. To what extent is the market approach consistent with the other two policy packages? What impact does a climate package with tradable emission rights and non-tradable targets for green energy have on the market designs for gas and electricity? Are the necessary investments in new pipes and wires for securing our energy supplies sufficiently coming under the prevailing regulatory framework? Or, to put it differently; are we smart enough in the way in which we are making implementing steps in order to meet our stated objectives? Our paper ends with a proposed new vision and a set of 22 recommendations to the new European Commission.energy policy; climate change; security of energy supply; EU internal marke