Innovating grid regulation to regulate grid innovation: From the Orkney Isles to Kriegers Flak via Italy

In the current context of a decarbonizing electricity system, grid innovation is needed to deal with the main challenges of integrating distributed generation, demand and storage, and large-scale renewable energy sources. Grid companies however have disincentives to innovate under the conventional regulatory framework, and if they do innovate, they are confronted with grid users that have disincentives to participate in the innovation. This paper analyzes three empirical cases where state of the art regulatory frameworks have been successful at stimulating grid innovation. The main lesson learned from the cases is that there is experience with addressing the disincentive of grid companies to innovate, but the participation of grid users in the innovation is much more an open issue.

[1]  R. Belmans,et al.  Transmission of bulk power , 2009, IEEE Industrial Electronics Magazine.

[2]  Per Joakim Agrell,et al.  Network Regulation under Climate Policy Review , 2010 .

[3]  Jean-Michel Glachant,et al.  Why Regulate Deregulated Network Industries? , 2002 .

[4]  François Lévêque,et al.  Competitive Electricity Markets and Sustainability , 2006 .

[5]  Catherine Mitchell,et al.  Regulatory Roadmaps for the Integration of Distributed Generation and the Development of Sustainable Electricity Networks A REVIEW OF FOUR EUROPEAN REGULATORY SYSTEMS AND THEIR IMPACT ON THE DEPLOYMENT OF DISTRIBUTED GENERATION , 2002 .

[6]  P. Joskow,et al.  Incentive Regulation in Theory and Practice: Electricity Distribution and Transmission Networks , 2005 .

[7]  John W. Mayo,et al.  The Effects of Regulation on Research and Development: Theory and Evidence , 1988 .

[8]  James J. Dooley,et al.  Unintended consequences: energy R&D in a deregulated energy market , 1998 .

[9]  Ignacio J. Pérez-Arriaga,et al.  Regulatory Instruments for Deployment of Clean Energy Technologies , 2009 .

[10]  Robert A. F. CURRIE,et al.  DESIGN AND TRIAL OF AN ACTIVE POWER FLOW MANAGEMENT SCHEME ON THE NORTH-SCOTLAND NETWORK , 2007 .

[11]  Ingo Vogelsang,et al.  Electricity Transmission Pricing and Performance-Based Regulation , 2005, SSRN Electronic Journal.

[12]  D. Sappington.  Regulating Service Quality: A Survey , 2005 .

[13]  S. Stoft.  Problems of Transmission Investment in a Deregulated Power Market , 2006 .

[14]  Klaus Skytte,et al.  Regulating Innovation & Innovating Regulation , 2007 .

[15]  E. Fumagalli,et al.  Service Quality Regulation in Electricity Distribution and Retail , 2007 .

[16]  Thomas R. Schneider,et al.  Balkanization and the Future of Electricity R&D , 1999 .

[17]  Tooraj Jamasb,et al.  Incentive regulation of electricity distribution networks : Lessons of experience from Britain , 2007 .

[18]  Thomas-Olivier Léautier,et al.  Regulation of an Electric Power Transmission Company , 2000 .

[19]  Jean-Michel Glachant,et al.  Regulating Networks in the New Economy , 2012 .

[20]  Alessandro Sterlacchini,et al.  R&D Drop in European Utilities - Should We Care About it? , 2006 .

[21]  D. Kammen,et al.  Underinvestment: the energy technology and R&D policy challenge , 1999, Science.

[22]  Hans Auer,et al.  Conditions and costs for renewables electricity grid connection: Examples in Europe , 2008 .

[23]  Mario Ragwitz,et al.  Evidence from RD&D spending for renewable energy sources in the EU , 2005 .

[24]  Tooraj Jamasb,et al.  Liberalisation and R&D in network industries: The case of the electricity industry , 2008 .