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Smart Regulation for Smart Grids

Author

Listed:
  • Leonardo Meeus
  • Marcelo Saguan
  • Jean-Michel Glachant
  • Ronnie Belmans

Abstract

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.

Suggested Citation

  • Leonardo Meeus & Marcelo Saguan & Jean-Michel Glachant & Ronnie Belmans, 2010. "Smart Regulation for Smart Grids," RSCAS Working Papers 2010/45, European University Institute.
    • Handle: RePEc:rsc:rsceui:2010/45
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    Citations

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    Cited by:

    1. Tilmann Rave & Ursula Triebswetter & Johann Wackerbauer, 2013. "Koordination von Innovations-, Energie- und Umweltpolitik," ifo Forschungsberichte, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, number 61.
    2. 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.
    3. Agrell, Per J. & Bogetoft, Peter & Mikkers, Misja, 2013. "Smart-grid investments, regulation and organization," Energy Policy, Elsevier, vol. 52(C), pages 656-666.
    4. Azevedo, Isabel & Delarue, Erik & Meeus, Leonardo, 2013. "Mobilizing cities towards a low-carbon future: Tambourines, carrots and sticks," Energy Policy, Elsevier, vol. 61(C), pages 894-900.
    5. J-M- Glachant & H. Khalfallah & Y. Perez & V. Rious & M. Saguan, 2013. "Implementing Incentive Regulation and Regulatory Alignment with Resource Bounded Regulators," Competition and Regulation in Network Industries, Intersentia, vol. 14(3), pages 265-291, September.
    6. Karim L. Anaya & Michael C. Pollit, "undated". "Finding the Optimal Approach for Allocating and Realising the Distribution System Capacity: Decidng between Interruptible Connections and Firm DG Connections," Cambridge Working Papers in Economics 1343, Faculty of Economics, University of Cambridge.
    7. Cédric Clastres, 2010. "Les réseaux intelligents : régulation, investissement et gestion de la demande électrique," Post-Print halshs-00539818, HAL.
    8. Jamasb, Tooraj & Llorca, Manuel & Meeus, Leonardo & Schittekatte, Tim, 2020. "Energy Network Innovation for Green Transition: Economic Issues and Regulatory Options," Working Papers 18-2020, Copenhagen Business School, Department of Economics.
    9. Munish Manas, 2015. "Development of preferential regulations, transmission tariffs, and critical technological components for the promotion of smart grid globally," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2015(2), pages 107-130.
    10. Andaluz-Alcazar, Alvaro, 2012. "Choix d'investissement sous incertitude des gestionnaires des réseaux de distribution (GRD) en Europe à l'horizon 2030," Economics Thesis from University Paris Dauphine, Paris Dauphine University, number 123456789/10862 edited by Keppler, Jan Horst.
    11. Gaspari, Michele & Lorenzoni, Arturo & Frías, Pablo & Reneses, Javier, 2017. "Integrated Energy Services for the industrial sector: an innovative model for sustainable electricity supply," Utilities Policy, Elsevier, vol. 45(C), pages 118-127.
    12. de Sépibus, Joëlle, 2013. "The Integration of Electricity from Renewable Energy Sources in the European Union Electricity Market – The case for “Smart Grids”," Papers 621, World Trade Institute.
    13. Simona Benedettini & Federico Pontoni, "undated". "Electricity distribution investments: no country for old rules? A critical overview of UK and Italian regulations," IEFE Working Papers 50, IEFE, Center for Research on Energy and Environmental Economics and Policy, Universita' Bocconi, Milano, Italy.
    14. Marques, Vítor & Bento, Nuno & Costa, Paulo Moisés, 2014. "The “Smart Paradox”: Stimulate the deployment of smart grids with effective regulatory instruments," Energy, Elsevier, vol. 69(C), pages 96-103.
    15. Haikel Khalfallah, 2013. "An assessment of Incentive Regulation in electricity networks: The story so far," Working Papers halshs-00931301, HAL.
    16. Karim L. Anaya & Michael Pollitt, 2013. "Understanding best practice regarding interruptible connections for wind generation: lessons from national and international experience," Cambridge Working Papers in Economics 1316, Faculty of Economics, University of Cambridge.
    17. Cédric Clastres, 2011. "Smart grids : Another step towards competition, energy security and climate change objectives," Post-Print halshs-00617702, HAL.
    18. Paulo Moisés Costa & Nuno Bento & Vítor Marques, 2014. "Dealing with Technological Risk in a Regulatory Context: The Case of Smart Grids," GEMF Working Papers 2014-11, GEMF, Faculty of Economics, University of Coimbra.
    19. Müller, H.K. & Torbaghan, S. Shariat & Gibescu, M. & Roggenkamp, M.M. & van der Meijden, M.A.M.M., 2013. "The need for a common standard for voltage levels of HVDC VSC technology," Energy Policy, Elsevier, vol. 63(C), pages 244-251.
    20. Anaya, Karim L. & Pollitt, Michael G., 2015. "Options for allocating and releasing distribution system capacity: Deciding between interruptible connections and firm DG connections," Applied Energy, Elsevier, vol. 144(C), pages 96-105.
    21. Jean-Michel Glachant & Haikel Khalfallah & Yannick Perez & Vincent Rious & Marcelo Saguan, 2013. "Implementing incentive regulation through an alignment with resource bounded regulators," Post-Print halshs-00767872, HAL.
    22. Müller, Christine, 2011. "New regulatory approaches towards investments: A revision of international experiences ; IRIN working paper for working package: Advancing incentive regulation with respect to smart grids," WIK Discussion Papers 353, WIK Wissenschaftliches Institut für Infrastruktur und Kommunikationsdienste GmbH.

    More about this item

    Keywords

    Regulation; innovation; electricity; grids; transmission; distribution;
    All these keywords.

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