IDEAS home Printed from https://ideas.repec.org/a/spr/endesu/v20y2018i1d10.1007_s10668-018-0119-x.html
   My bibliography  Save this article

Policy-adaptation for a smarter and more sustainable EU electricity distribution industry: a foresight analysis

Author

Listed:
  • Guillermo Ivan Pereira

    (University of Coimbra
    INESC Coimbra, Institute for Systems Engineering and Computers at Coimbra
    Massachusetts Institute of Technology)

  • Patrícia Pereira Silva

    (University of Coimbra
    INESC Coimbra, Institute for Systems Engineering and Computers at Coimbra
    University of Coimbra)

  • Deborah Soule

    (Massachusetts Institute of Technology)

Abstract

The European Union (EU) transition to a smarter and more sustainable electricity sector is driven by climate change adaptation and technological developments. For the electricity distribution industry, this has contributed to a growing need to understand how these network monopolies should adapt their role, activities, and responsibilities for a redesigned electricity market, given the growth of distributed generation, and the increased control and monitoring capabilities. Considering this, a foresight study on business model innovation, technological adaptation, and market design policy alternatives is presented. A Policy Delphi method was applied, involving two iterative survey rounds and 207 European experts, which assessed 57 policy alternatives. The results highlight adaptation challenges for implementing new technologies and business practices. Experts support innovation and transition to new roles, and innovative services, while warranting that core electricity distribution activities are secured. This shift in roles is expected to be achieved through research and development (R&D) support policies, innovation friendly regulatory frameworks, and concerted actions at the EU and Member States level. The results provide policy-adaptation guidelines for electricity distribution industry stakeholders.

Suggested Citation

  • Guillermo Ivan Pereira & Patrícia Pereira Silva & Deborah Soule, 2018. "Policy-adaptation for a smarter and more sustainable EU electricity distribution industry: a foresight analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 231-267, December.
  • Handle: RePEc:spr:endesu:v:20:y:2018:i:1:d:10.1007_s10668-018-0119-x
    DOI: 10.1007/s10668-018-0119-x
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s10668-018-0119-x
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.

    File URL: https://libkey.io/10.1007/s10668-018-0119-x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Helms, Thorsten, 2016. "Asset transformation and the challenges to servitize a utility business model," Energy Policy, Elsevier, vol. 91(C), pages 98-112.
    2. Alyami, Saleh. H. & Rezgui, Yacine & Kwan, Alan, 2013. "Developing sustainable building assessment scheme for Saudi Arabia: Delphi consultation approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 27(C), pages 43-54.
    3. Nisar, Arsalan & Ruiz, Felipe & Palacios, Miguel, 2013. "Organisational learning, strategic rigidity and technology adoption: Implications for electric utilities and renewable energy firms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 22(C), pages 438-445.
    4. Liimatainen, Heikki & Kallionpää, Erika & Pöllänen, Markus & Stenholm, Pekka & Tapio, Petri & McKinnon, Alan, 2014. "Decarbonizing road freight in the future — Detailed scenarios of the carbon emissions of Finnish road freight transport in 2030 using a Delphi method approach," Technological Forecasting and Social Change, Elsevier, vol. 81(C), pages 177-191.
    5. Richardson, David B., 2013. "Electric vehicles and the electric grid: A review of modeling approaches, Impacts, and renewable energy integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 247-254.
    6. Celiktas, Melih Soner & Kocar, Gunnur, 2010. "From potential forecast to foresight of Turkey's renewable energy with Delphi approach," Energy, Elsevier, vol. 35(5), pages 1973-1980.
    7. Blumsack, Seth & Fernandez, Alisha, 2012. "Ready or not, here comes the smart grid!," Energy, Elsevier, vol. 37(1), pages 61-68.
    8. Xenias, Dimitrios & Axon, Colin J. & Whitmarsh, Lorraine & Connor, Peter M. & Balta-Ozkan, Nazmiye & Spence, Alexa, 2015. "UK smart grid development: An expert assessment of the benefits, pitfalls and functions," Renewable Energy, Elsevier, vol. 81(C), pages 89-102.
    9. Ruester, Sophia & Schwenen, Sebastian & Batlle, Carlos & Pérez-Arriaga, Ignacio, 2014. "From distribution networks to smart distribution systems: Rethinking the regulation of European electricity DSOs," Utilities Policy, Elsevier, vol. 31(C), pages 229-237.
    10. Bergman, Jukka & Viljainen, Satu & Kassi, Tuomo & Partanen, Jarmo & Laaksonen, Petteri, 2006. "Managing the exploration of new operational and strategic activities using the scenario method--assessing future capabilities in the field of electricity distribution industry," International Journal of Production Economics, Elsevier, vol. 104(1), pages 46-61, November.
    11. Kayser, Dirk, 2016. "Solar photovoltaic projects in China: High investment risks and the need for institutional response," Applied Energy, Elsevier, vol. 174(C), pages 144-152.
    12. Galo, Joaquim J.M. & Macedo, Maria N.Q. & Almeida, Luiz A.L. & Lima, Antonio C.C., 2014. "Criteria for smart grid deployment in Brazil by applying the Delphi method," Energy, Elsevier, vol. 70(C), pages 605-611.
    13. Varho, Vilja & Rikkonen, Pasi & Rasi, Saija, 2016. "Futures of distributed small-scale renewable energy in Finland — A Delphi study of the opportunities and obstacles up to 2025," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 30-37.
    14. Paul L. Joskow, 2008. "Lessons Learned from Electricity Market Liberalization," The Energy Journal, International Association for Energy Economics, vol. 0(Special I), pages 9-42.
    15. Usman, Ahmad & Shami, Sajjad Haider, 2013. "Evolution of Communication Technologies for Smart Grid applications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 191-199.
    16. de Loë, Rob C. & Melnychuk, Natalya & Murray, Dan & Plummer, Ryan, 2016. "Advancing the State of Policy Delphi Practice: A Systematic Review Evaluating Methodological Evolution, Innovation, and Opportunities," Technological Forecasting and Social Change, Elsevier, vol. 104(C), pages 78-88.
    17. Ropenus, Stephanie & Jacobsen, Henrik Klinge & Schröder, Sascha Thorsten, 2011. "Network regulation and support schemes – How policy interactions affect the integration of distributed generation," Renewable Energy, Elsevier, vol. 36(7), pages 1949-1956.
    18. Gallego Carrera, Diana & Mack, Alexander, 2010. "Sustainability assessment of energy technologies via social indicators: Results of a survey among European energy experts," Energy Policy, Elsevier, vol. 38(2), pages 1030-1039, February.
    19. Billig, Eric & Thrän, Daniela, 2016. "Evaluation of biomethane technologies in Europe – Technical concepts under the scope of a Delphi-Survey embedded in a multi-criteria analysis," Energy, Elsevier, vol. 114(C), pages 1176-1186.
    20. Hsueh, Sung-Lin, 2015. "Assessing the effectiveness of community-promoted environmental protection policy by using a Delphi-fuzzy method: A case study on solar power and plain afforestation in Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 1286-1295.
    21. Ute Dubois & Roxana Saplacan, 2010. "Public Service Perspectives On Reforms Of Electricity Distribution And Supply: A Modular Analysis," Annals of Public and Cooperative Economics, Wiley Blackwell, vol. 81(2), pages 313-356, June.
    22. Mwasilu, Francis & Justo, Jackson John & Kim, Eun-Kyung & Do, Ton Duc & Jung, Jin-Woo, 2014. "Electric vehicles and smart grid interaction: A review on vehicle to grid and renewable energy sources integration," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 501-516.
    23. Wissner, Matthias, 2011. "The Smart Grid - A saucerful of secrets?," Applied Energy, Elsevier, vol. 88(7), pages 2509-2518, July.
    24. Ruiz-Romero, Salvador & Colmenar-Santos, Antonio & Mur-Pérez, Francisco & López-Rey, África, 2014. "Integration of distributed generation in the power distribution network: The need for smart grid control systems, communication and equipment for a smart city — Use cases," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 223-234.
    25. Green II, Robert C. & Wang, Lingfeng & Alam, Mansoor, 2011. "The impact of plug-in hybrid electric vehicles on distribution networks: A review and outlook," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(1), pages 544-553, January.
    26. Makkonen, Marika & Hujala, Teppo & Uusivuori, Jussi, 2016. "Policy experts' propensity to change their opinion along Delphi rounds," Technological Forecasting and Social Change, Elsevier, vol. 109(C), pages 61-68.
    27. Schuckmann, Steffen W. & Gnatzy, Tobias & Darkow, Inga-Lena & von der Gracht, Heiko A., 2012. "Analysis of factors influencing the development of transport infrastructure until the year 2030 — A Delphi based scenario study," Technological Forecasting and Social Change, Elsevier, vol. 79(8), pages 1373-1387.
    28. de Joode, J. & Jansen, J.C. & van der Welle, A.J. & Scheepers, M.J.J., 2009. "Increasing penetration of renewable and distributed electricity generation and the need for different network regulation," Energy Policy, Elsevier, vol. 37(8), pages 2907-2915, August.
    29. Depuru, Soma Shekara Sreenadh Reddy & Wang, Lingfeng & Devabhaktuni, Vijay, 2011. "Smart meters for power grid: Challenges, issues, advantages and status," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(6), pages 2736-2742, August.
    30. Wade, N.S. & Taylor, P.C. & Lang, P.D. & Jones, P.R., 2010. "Evaluating the benefits of an electrical energy storage system in a future smart grid," Energy Policy, Elsevier, vol. 38(11), pages 7180-7188, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Indre Siksnelyte & Edmundas Kazimieras Zavadskas, 2019. "Achievements of the European Union Countries in Seeking a Sustainable Electricity Sector," Energies, MDPI, vol. 12(12), pages 1-16, June.
    2. Kang, Jia-Ning & Wei, Yi-Ming & Liu, Lan-Cui & Han, Rong & Yu, Bi-Ying & Wang, Jin-Wei, 2020. "Energy systems for climate change mitigation: A systematic review," Applied Energy, Elsevier, vol. 263(C).
    3. Tomasz Rokicki & Aleksandra Perkowska, 2021. "Diversity and Changes in the Energy Balance in EU Countries," Energies, MDPI, vol. 14(4), pages 1-19, February.
    4. Tomasz Rokicki & Piotr Bórawski & Barbara Gradziuk & Piotr Gradziuk & Aldona Mrówczyńska-Kamińska & Joanna Kozak & Danuta Jolanta Guzal-Dec & Kamil Wojtczuk, 2021. "Differentiation and Changes of Household Electricity Prices in EU Countries," Energies, MDPI, vol. 14(21), pages 1-21, October.
    5. Tomasz Rokicki & Radosław Jadczak & Adam Kucharski & Piotr Bórawski & Aneta Bełdycka-Bórawska & András Szeberényi & Aleksandra Perkowska, 2022. "Changes in Energy Consumption and Energy Intensity in EU Countries as a Result of the COVID-19 Pandemic by Sector and Area Economy," Energies, MDPI, vol. 15(17), pages 1-26, August.
    6. Isabel Soares & Paula Ferreira & Luc Hens, 2018. "Energy and environmental challenges: bringing together economics and engineering (ICEE’17)," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 1-5, December.
    7. Pereira, Guillermo Ivan & Niesten, Eva & Pinkse, Jonatan, 2022. "Sustainable energy systems in the making: A study on business model adaptation in incumbent utilities," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    8. Soares, N. & Martins, A.G. & Carvalho, A.L. & Caldeira, C. & Du, C. & Castanheira, É. & Rodrigues, E. & Oliveira, G. & Pereira, G.I. & Bastos, J. & Ferreira, J.P. & Ribeiro, L.A. & Figueiredo, N.C. & , 2018. "The challenging paradigm of interrelated energy systems towards a more sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 171-193.
    9. Pereira, Guillermo Ivan & Specht, Jan Martin & Silva, Patrícia Pereira & Madlener, Reinhard, 2018. "Technology, business model, and market design adaptation toward smart electricity distribution: Insights for policy making," Energy Policy, Elsevier, vol. 121(C), pages 426-440.
    10. Tomasz Rokicki & Piotr Bórawski & András Szeberényi, 2023. "The Impact of the 2020–2022 Crises on EU Countries’ Independence from Energy Imports, Particularly from Russia," Energies, MDPI, vol. 16(18), pages 1-26, September.
    11. Pereira, Guillermo Ivan & Pereira da Silva, Patrícia & Cerqueira, Pedro André, 2020. "Electricity distribution incumbents' adaptation toward decarbonized and smarter grids: Evidence on the role market, regulatory, investment, and firm-level factors," Energy Policy, Elsevier, vol. 142(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Soares, N. & Martins, A.G. & Carvalho, A.L. & Caldeira, C. & Du, C. & Castanheira, É. & Rodrigues, E. & Oliveira, G. & Pereira, G.I. & Bastos, J. & Ferreira, J.P. & Ribeiro, L.A. & Figueiredo, N.C. & , 2018. "The challenging paradigm of interrelated energy systems towards a more sustainable future," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 171-193.
    2. Shaukat, N. & Khan, B. & Ali, S.M. & Mehmood, C.A. & Khan, J. & Farid, U. & Majid, M. & Anwar, S.M. & Jawad, M. & Ullah, Z., 2018. "A survey on electric vehicle transportation within smart grid system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1329-1349.
    3. Colak, Ilhami & Kabalci, Ersan & Fulli, Gianluca & Lazarou, Stavros, 2015. "A survey on the contributions of power electronics to smart grid systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 562-579.
    4. Lamnatou, Chr. & Chemisana, D. & Cristofari, C., 2022. "Smart grids and smart technologies in relation to photovoltaics, storage systems, buildings and the environment," Renewable Energy, Elsevier, vol. 185(C), pages 1376-1391.
    5. Pereira, Guillermo Ivan & Specht, Jan Martin & Silva, Patrícia Pereira & Madlener, Reinhard, 2018. "Technology, business model, and market design adaptation toward smart electricity distribution: Insights for policy making," Energy Policy, Elsevier, vol. 121(C), pages 426-440.
    6. Tuballa, Maria Lorena & Abundo, Michael Lochinvar, 2016. "A review of the development of Smart Grid technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 59(C), pages 710-725.
    7. Chou, Jui-Sheng & Gusti Ayu Novi Yutami, I, 2014. "Smart meter adoption and deployment strategy for residential buildings in Indonesia," Applied Energy, Elsevier, vol. 128(C), pages 336-349.
    8. Rahman, Imran & Vasant, Pandian M. & Singh, Balbir Singh Mahinder & Abdullah-Al-Wadud, M. & Adnan, Nadia, 2016. "Review of recent trends in optimization techniques for plug-in hybrid, and electric vehicle charging infrastructures," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1039-1047.
    9. Rahman, Syed & Khan, Irfan Ahmed & Khan, Ashraf Ali & Mallik, Ayan & Nadeem, Muhammad Faisal, 2022. "Comprehensive review & impact analysis of integrating projected electric vehicle charging load to the existing low voltage distribution system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 153(C).
    10. Yong, Jia Ying & Ramachandaramurthy, Vigna K. & Tan, Kang Miao & Mithulananthan, N., 2015. "A review on the state-of-the-art technologies of electric vehicle, its impacts and prospects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 365-385.
    11. Reddy, K.S. & Kumar, Madhusudan & Mallick, T.K. & Sharon, H. & Lokeswaran, S., 2014. "A review of Integration, Control, Communication and Metering (ICCM) of renewable energy based smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 180-192.
    12. K. Habibul Kabir & Shafquat Yasar Aurko & Md. Saifur Rahman, 2021. "Smart Power Management in OIC Countries: A Critical Overview Using SWOT-AHP and Hybrid MCDM Analysis," Energies, MDPI, vol. 14(20), pages 1-50, October.
    13. Paterakis, Nikolaos G. & Erdinç, Ozan & Catalão, João P.S., 2017. "An overview of Demand Response: Key-elements and international experience," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 871-891.
    14. Hota, Ashish Ranjan & Juvvanapudi, Mahesh & Bajpai, Prabodh, 2014. "Issues and solution approaches in PHEV integration to smart grid," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 217-229.
    15. Fadaeenejad, M. & Saberian, A.M. & Fadaee, Mohd. & Radzi, M.A.M. & Hizam, H. & AbKadir, M.Z.A., 2014. "The present and future of smart power grid in developing countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 828-834.
    16. Niesten, Eva & Alkemade, Floortje, 2016. "How is value created and captured in smart grids? A review of the literature and an analysis of pilot projects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 629-638.
    17. Ruiz-Romero, Salvador & Colmenar-Santos, Antonio & Mur-Pérez, Francisco & López-Rey, África, 2014. "Integration of distributed generation in the power distribution network: The need for smart grid control systems, communication and equipment for a smart city — Use cases," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 223-234.
    18. Fletcher, James & Malalasekera, Weeratunge, 2016. "Development of a user-friendly, low-cost home energy monitoring and recording system," Energy, Elsevier, vol. 111(C), pages 32-46.
    19. Batista, N.C. & Melício, R. & Matias, J.C.O. & Catalão, J.P.S., 2013. "Photovoltaic and wind energy systems monitoring and building/home energy management using ZigBee devices within a smart grid," Energy, Elsevier, vol. 49(C), pages 306-315.
    20. Köktürk, G. & Tokuç, A., 2017. "Vision for wind energy with a smart grid in Izmir," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 332-345.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:endesu:v:20:y:2018:i:1:d:10.1007_s10668-018-0119-x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.