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The need for more flexibility in the regulation of smart grids – Stakeholder involvement

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  • Christine Brandstätt
  • Gert Brunekreeft
  • Nele Friedrichsen
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    Abstract

    Energy and climate policy drive large scale integration of distributed generation and demand side management, with massive consequences for distribution grids. New technologies and actors shape the transformation of electricity networks towards smart systems. We argue that future regulation of smart grids needs to allow more flexibility. Firstly, the core of network monopoly starts to weaken allowing for more third party involvement. Secondly, the increasing number and heterogeneity of stakeholders makes “one-size-fits-all” regulation simply less suitable, whilst regulation needs to take account of various interests. In this paper we discuss stakeholder involvement and make policy recommendations to render regulation of smart systems more flexible.

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    File URL: http://www.bremer-energie-institut.de/download/bewp/bewp13.pdf
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    Bibliographic Info

    Paper provided by Bremer Energie Institut in its series Bremen Energy Working Papers with number 0013.

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    Length: 13 pages
    Date of creation: Feb 2013
    Date of revision:
    Handle: RePEc:bei:00bewp:0013

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    Web page: http://www.bremer-energie-institut.de/

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    Keywords: smart grids; regulation; information management; third-party involvement;

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    1. Michael G. Pollitt, 2008. "The Future of Electricity (and Gas) Regulation in a Low-carbon Policy World," The Energy Journal, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Special I), pages 63-94.
    2. Littlechild, Stephen C., 2012. "Australian airport regulation: Exploring the frontier," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 50-62.
    3. Michael Carter & Julian Wright, 1999. "Interconnection in Network Industries," Review of Industrial Organization, Springer, Springer, vol. 14(1), pages 1-25, February.
    4. Abdala, Manuel A., 2008. "Governance of competitive transmission investment in weak institutional systems," Energy Economics, Elsevier, Elsevier, vol. 30(4), pages 1306-1320, July.
    5. Knieps, Gunter, 1997. "Phasing Out Sector-Specific Regulation in Competitive Telecommunications," Kyklos, Wiley Blackwell, Wiley Blackwell, vol. 50(3), pages 325-39.
    6. Baumol, W, & Ordover, J. & Willig, R., 1996. "Parity Pricing and Its Critics: Necessary Condition for Efficiency in Provision of Bottleneck Services to Competitors," Working Papers, C.V. Starr Center for Applied Economics, New York University 96-33, C.V. Starr Center for Applied Economics, New York University.
    7. Littlechild, S.C. & Skerk, C.J., 2004. "Regulation of transmission expansion in Argentina Part II: Developments since the Fourth Line," Cambridge Working Papers in Economics 0465, Faculty of Economics, University of Cambridge.
    8. Gunn, Calum & Sharp, Basil, 1999. "Electricity distribution as an unsustainable natural monopoly: a potential outcome of New Zealand's regulatory regime," Energy Economics, Elsevier, Elsevier, vol. 21(4), pages 385-401, August.
    9. Clastres, Cédric, 2011. "Smart grids: Another step towards competition, energy security and climate change objectives," Energy Policy, Elsevier, vol. 39(9), pages 5399-5408, September.
    10. Roland Meyer, 2012. "Vertical Economies and the Costs of Separating Electricity Supply--A Review of Theoretical and Empirical Literature," The Energy Journal, International Association for Energy Economics, International Association for Energy Economics, vol. 0(Number 4).
    11. Cédric Clastres, 2011. "Smart grids : Another step towards competition, energy security and climate change objectives," Post-Print halshs-00617702, HAL.
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