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

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  • Nele Friedrichsen

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  • Christine Brandstätt
  • Gert Brunekreeft

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. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Nele Friedrichsen & Christine Brandstätt & Gert Brunekreeft, 2014. "The need for more flexibility in the regulation of smart grids – stakeholder involvement," International Economics and Economic Policy, Springer, vol. 11(1), pages 261-275, February.
  • Handle: RePEc:kap:iecepo:v:11:y:2014:i:1:p:261-275
    DOI: 10.1007/s10368-013-0243-x
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    File URL: http://hdl.handle.net/10.1007/s10368-013-0243-x
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    References listed on IDEAS

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    1. Littlechild, Stephen C., 2012. "Australian airport regulation: Exploring the frontier," Journal of Air Transport Management, Elsevier, vol. 21(C), pages 50-62.
    2. Dierk Bauknecht, 2011. "Incentive Regulation and Network Innovations," RSCAS Working Papers 2011/02, European University Institute.
    3. 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, vol. 0(Number 4).
    4. Gunn, Calum & Sharp, Basil, 1999. "Electricity distribution as an unsustainable natural monopoly: a potential outcome of New Zealand's regulatory regime," Energy Economics, Elsevier, vol. 21(4), pages 385-401, August.
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    Cited by:

    1. Imke Lammers & Lea Diestelmeier, 2017. "Experimenting with Law and Governance for Decentralized Electricity Systems: Adjusting Regulation to Reality?," Sustainability, MDPI, Open Access Journal, vol. 9(2), pages 1-14, February.
    2. Gert Brunekreeft, Marius Buchmann, and Roland Meyer, 2016. "The Rise of Third Parties and the Fall of Incumbents Driven by Large-Scale Integration of Renewable Energies: The Case of Germany," The Energy Journal, International Association for Energy Economics, vol. 0(Bollino-M).
    3. Moroni, Stefano & Antoniucci, Valentina & Bisello, Adriano, 2016. "Energy sprawl, land taking and distributed generation: towards a multi-layered density," Energy Policy, Elsevier, vol. 98(C), pages 266-273.

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