IDEAS home Printed from https://ideas.repec.org/p/cam/camdae/2201.html
   My bibliography  Save this paper

Where next for the electricity distribution system operator? Evidence from a survey of European DSOs and National Regulatory Authorities

Author

Listed:
  • Anaya, K. L.
  • Giulietti, M.
  • Pollitt, M .G.

Abstract

This paper seeks to shed light on the nature of optimal regulation of the electricity distribution system operator (DSO) over the period to 2025 and beyond, following the implementation of the EU Clean Energy Package and its constituent parts: Electricity Regulation (EU) 2019/943 and Electricity Directive (EU) 2019/944. We conducted two parallel surveys of DSOs and their national regulatory authorities (NRAs) across 39 European countries. This produced 39 responses from DSOs and 12 responses from NRAs covering, respectively, 40% and 78% of customers in those countries. We asked both DSOs and NRAs three sets of questions related to: (1) the definition and regulation of the future system operator function of the DSO; (2) lessons learned from transmission system operator (TSO) regulation that can be translated to the DSO; and (3) the way in which regulators support the capacity of the DSO to operate and coordinate the system. Our findings are consistent with the observation that the move towards a more active role for the DSO remains work in progress for both DSOs and their NRAs, given the fact that the Clean Energy Package has only passed into European Law relatively recently and some Member States are still implementing its provisions.

Suggested Citation

  • Anaya, K. L. & Giulietti, M. & Pollitt, M .G., 2022. "Where next for the electricity distribution system operator? Evidence from a survey of European DSOs and National Regulatory Authorities," Cambridge Working Papers in Economics 2201, Faculty of Economics, University of Cambridge.
    • Handle: RePEc:cam:camdae:2201
    Note: mgp20
    as

    Download full text from publisher

    File URL: http://www.econ.cam.ac.uk/research-files/repec/cam/pdf/cwpe2201.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Karim L. Anaya & Michael G. Pollitt, 2021. "How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects," Energies, MDPI, vol. 14(15), pages 1-26, July.
    2. Ian Alexander & Timothy Irwin, 1997. "Price Caps, Rate-of-Return Regulation, and the Cost of Capital," World Bank Publications - Reports 11575, The World Bank Group.
    3. Klyapovskiy, Sergey & You, Shi & Michiorri, Andrea & Kariniotakis, George & Bindner, Henrik W., 2019. "Incorporating flexibility options into distribution grid reinforcement planning: A techno-economic framework approach," Applied Energy, Elsevier, vol. 254(C).
    4. Cambini, Carlo & Congiu, Raffaele & Jamasb, Tooraj & Llorca, Manuel & Soroush, Golnoush, 2020. "Energy Systems Integration: Implications for public policy," Energy Policy, Elsevier, vol. 143(C).
    5. Tooraj Jamasb and Manuel Llorca, 2019. "Energy Systems Integration: Economics of a New Paradigm," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 2).
    6. Karim L. Anaya & Michael G. Pollitt, 2021. "The Role of Regulators in Promoting the Procurement of Flexibility Services within the Electricity Distribution System: A Survey of Seven Leading Countries," Energies, MDPI, vol. 14(14), pages 1-25, July.
    7. Pereira, Guillermo Ivan & Pereira da Silva, Patrícia & Cerqueira, Pedro André, 2020. "Electricity distribution incumbents' adaptation toward decarbonized and smarter grids: Evidence on the role market, regulatory, investment, and firm-level factors," Energy Policy, Elsevier, vol. 142(C).
    8. Scott P. Burger, Jesse D. Jenkins, Carlos Batlle, and Ignacio J. Pérez-Arriaga, 2019. "Restructuring Revisited Part 1: Competition in Electricity Distribution Systems," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    9. Meeus, Leonardo & Saguan, Marcelo, 2011. "Innovating grid regulation to regulate grid innovation: From the Orkney Isles to Kriegers Flak via Italy," Renewable Energy, Elsevier, vol. 36(6), pages 1761-1765.
    10. 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.
    11. Scott P. Burger, Jesse D. Jenkins, Carlos Batlle, and Ignacio J. Perez-Arriaga, 2019. "Restructuring Revisited Part 2: Coordination in Electricity Distribution Systems," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    12. Knezović, Katarina & Marinelli, Mattia & Zecchino, Antonio & Andersen, Peter Bach & Traeholt, Chresten, 2017. "Supporting involvement of electric vehicles in distribution grids: Lowering the barriers for a proactive integration," Energy, Elsevier, vol. 134(C), pages 458-468.
    13. Pollitt, Michael G., 2012. "Lessons from the history of independent system operators in the energy sector," Energy Policy, Elsevier, vol. 47(C), pages 32-48.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Gonzalez Venegas, Felipe & Petit, Marc & Perez, Yannick, 2021. "Active integration of electric vehicles into distribution grids: Barriers and frameworks for flexibility services," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    2. Schittekatte, Tim & Meeus, Leonardo, 2020. "Flexibility markets: Q&A with project pioneers," Utilities Policy, Elsevier, vol. 63(C).
    3. Manuel Llorca & Ana Rodriguez-Alvarez, 2023. "Economic, Environmental, and Energy Equity Convergence: Evidence of a Multi-Speed Europe?," Efficiency Series Papers 2023/05, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    4. Bovera, Filippo & Lo Schiavo, Luca, 2022. "From energy communities to sector coupling:a taxonomy for regulatory experimentation in the age of the European Green Deal," Energy Policy, Elsevier, vol. 171(C).
    5. Bovera, Filippo & Delfanti, Maurizio & Fumagalli, Elena & Lo Schiavo, Luca & Vailati, Riccardo, 2021. "Regulating electricity distribution networks under technological and demand uncertainty," Energy Policy, Elsevier, vol. 149(C).
    6. Cambini, Carlo & Congiu, Raffaele & Jamasb, Tooraj & Llorca, Manuel & Soroush, Golnoush, 2020. "Energy Systems Integration: Implications for public policy," Energy Policy, Elsevier, vol. 143(C).
    7. Biancardi, Andrea & Di Castelnuovo, Matteo & Staffell, Iain, 2021. "A framework to evaluate how European Transmission System Operators approach innovation," Energy Policy, Elsevier, vol. 158(C).
    8. Schittekatte, Tim & Meeus, Leonardo & Jamasb, Tooraj & Llorca, Manuel, 2021. "Regulatory experimentation in energy: Three pioneer countries and lessons for the green transition," Energy Policy, Elsevier, vol. 156(C).
    9. Carlo Cambini & Raffaele Congiu & Golnoush Soroush, 2020. "Regulation, Innovation, and Systems Integration: Evidence from the EU," Energies, MDPI, vol. 13(7), pages 1-18, April.
    10. Daglish, Toby & de Bragança, Gabriel Godofredo Fiuza & Owen, Sally & Romano, Teresa, 2021. "Pricing effects of the electricity market reform in Brazil," Energy Economics, Elsevier, vol. 97(C).
    11. Csereklyei, Zsuzsanna & Kallies, Anne, 2022. "A legal-economic framework of electricity markets: Assessing Australia’s transition," MPRA Paper 114191, University Library of Munich, Germany.
    12. Lynne L. Kiesling & Leonardo Meeus & Michael G. Pollitt, 2021. "Special Issue “Innovation, Policy, and Regulation in Electricity Markets”," Energies, MDPI, vol. 14(19), pages 1-4, September.
    13. Llorca, Manuel & Soroush, Golnoush & Giovannetti, Emanuele & Jamasb, Tooraj & Davi-Arderius, Daniel, 2024. "Energy Sector Digitalisation, Green Transition and Regulatory Trade-offs," Working Papers 5-2024, Copenhagen Business School, Department of Economics.
    14. Karim L. Anaya & Michael G. Pollitt, 2021. "The Role of Regulators in Promoting the Procurement of Flexibility Services within the Electricity Distribution System: A Survey of Seven Leading Countries," Energies, MDPI, vol. 14(14), pages 1-25, July.
    15. Pedro H. Perico E Santos & Olivier Massol, 2022. "Electricity Distribution Systems in Europe : An Overview of Contemporary Regulatory Challenges," Working Papers hal-03897936, HAL.
    16. Karim L. Anaya & Michael G. Pollitt, 2021. "How to Procure Flexibility Services within the Electricity Distribution System: Lessons from an International Review of Innovation Projects," Energies, MDPI, vol. 14(15), pages 1-26, July.
    17. Alan Mee & Madeleine Lyes & Philip Crowe, 2021. "Energy Urbanity and Active Citizen Participation," Energies, MDPI, vol. 14(20), pages 1-20, October.
    18. Anna Pechan & Marius Buchmann, 2023. "Market design for the procurement of reactive power: the current state in Germany," Bremen Energy Working Papers 0046, Bremen Energy Research.
    19. Josef Kohlbacher, 2020. "Frustrating Beginnings: How Social Ties Compensate Housing Integration Barriers for Afghan Refugees in Vienna," Urban Planning, Cogitatio Press, vol. 5(3), pages 127-137.
    20. Nykamp, Stefan & Andor, Mark & Hurink, Johann L., 2012. "‘Standard’ incentive regulation hinders the integration of renewable energy generation," Energy Policy, Elsevier, vol. 47(C), pages 222-237.

    More about this item

    Keywords

    distribution system operator; DSO; Electricity Regulation;
    All these keywords.

    JEL classification:

    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities
    • L21 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Business Objectives of the Firm

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cam:camdae:2201. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Jake Dyer (email available below). General contact details of provider: https://www.econ.cam.ac.uk/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.