Incentive Regulation and Network Innovations
AbstractSmart Grids require innovations in the electricity networks, mainly on the level of the distributed system operator (DSO). A main objective is to increase the share of distributed generation (DG) connected to that network level, but also to enable load management on the demand side. This paper analyses network innovations in the context of the regulatory framework, namely incentive regulation. It is structured as follows: The first section examines how cost-based and price-based regulatory schemes influence RD&D by regulated companies. This is followed by a discussion of various regulatory instruments to stimulate innovation. The third section provides a more general discussion of the pros and cons of promoting network innovations via network regulation.
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Bibliographic InfoPaper provided by European University Institute in its series RSCAS Working Papers with number 2011/02.
Date of creation: 22 Feb 2011
Date of revision:
incentive regulation; price-based regulation; cost-based regulation; Rd&D; network innovations;
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-10-01 (All new papers)
- NEP-ENE-2011-10-01 (Energy Economics)
- NEP-INO-2011-10-01 (Innovation)
- NEP-NET-2011-10-01 (Network Economics)
- NEP-REG-2011-10-01 (Regulation)
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