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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

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.

Suggested Citation

  • Christine Brandstätt & Gert Brunekreeft & Nele Friedrichsen, 2013. "The Need for More Flexibility in the Regulation of Smart Grids – Stakeholder Involvement," Bremen Energy Working Papers 0013, Bremen Energy Research.
    • Handle: RePEc:bei:00bewp:0013
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    References listed on IDEAS

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    1. 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).
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    3. Cédric Clastres, 2011. "Smart grids : Another step towards competition, energy security and climate change objectives," Post-Print halshs-00617702, HAL.
    4. 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, vol. 0(Special I), pages 63-94.
    5. Michael Carter & Julian Wright, 1999. "Interconnection in Network Industries," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 14(1), pages 1-25, February.
    6. Abdala, Manuel A., 2008. "Governance of competitive transmission investment in weak institutional systems," Energy Economics, Elsevier, vol. 30(4), pages 1306-1320, July.
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    8. Stephen C. Stephen C. & Carlos J. Skerk, 2004. "Regulation of Transmission Expansion in Argentina: Part II – Developments Since the Fourth Line," Working Papers EP62, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    9. 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.
    10. 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.
    11. Knieps, Gunter, 1997. "Phasing Out Sector-Specific Regulation in Competitive Telecommunications," Kyklos, Wiley Blackwell, vol. 50(3), pages 325-339.
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    Cited by:

    1. Marius Buchmann, 2016. "Information Management in Smart Grids - the need for decentralized governance approaches," Bremen Energy Working Papers 0025, Bremen Energy Research.

    More about this item

    Keywords

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

    JEL classification:

    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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