• Alliander: Power to the people (A)

      Debruyne, Marion; Meeus, Leonardo; Hadush, Samson Yemane (2017)
      This is part of a case series. The aim of this three part teaching case is to stimulate discussion on how companies can adopt new business models to survive sector-wide transitions by taking the perspective of energy network companies which often operate under a highly regulated environment.
    • Alliander: Power to the people (B)

      Debruyne, Marion; Meeus, Leonardo; Hadush, Samson Yemane (2017)
      This is part of a case series. The aim of this three part teaching case is to stimulate discussion on how companies can adopt new business models to survive sector-wide transitions by taking the perspective of energy network companies which often operate under a highly regulated environment.
    • Alliander: Power to the people (C)

      Debruyne, Marion; Meeus, Leonardo; Hadush, Samson Yemane (2017)
      This is part of a case series. The aim of this three part teaching case is to stimulate discussion on how companies can adopt new business models to survive sector-wide transitions by taking the perspective of energy network companies which often operate under a highly regulated environment.
    • Cross-border cost allocation: application of beneficiary pays principle to electricity transmission investments

      Hadush, Samson Yemane (2014)
      Massive electricity transmission investments are needed to achieve the energy and climate policy objectives of the European Union. The alignment of national and European interests remains the key challenge behind the realization of these investments. This thesis contributes to the design of efficient cross-border cost allocation solution as one of the regulatory tools that can play a significant role in aligning these interests. Trends in practice indicate the application of beneficiary pays principle to solve the cost allocation problem. Within the academic circle, this has been the long standing core principle of solving cost allocation problems. However, its application to cross-border electricity transmission investments with a strong national decision-making power is not widely studied. This thesis reviews various cost allocation methods to check their suitability to apply this principle. The findings indicate that these methods leave open questions regarding which benefit indicators to use for allocating the investment cost and how compensation issues are handled. Therefore, a framework to apply the beneficiary pays principle is required. Introducing transmission investments from a welfare analysis perspective, the thesis develops a framework to apply the beneficiary pays principle to solve the cost allocation problem. An important element of this framework is the use of congestion revenue as part of the solution. The design involves using congestion revenue in a compensation logic to ensure voluntary cooperation among participating countries. The designed framework is then applied in the context of two important developments in transmission investments in Europe: Projects of Common Interest (PCI) and offshore wind interconnection projects. The results show that the framework can help align national and European interests in projects with European relevance. Moreover, important implementation issues are identified.
    • DSO-TSO cooperation issues & solutions for distribution grid congestion management

      Hadush, Samson Yemane; Meeus, Leonardo (2017)
      The role of DSOs is evolving due to the increasing penetration of intermittent and distributed energy resources in the distribution system. On the one hand, TSOs are accessing flexibility resources connected to the distribution grid. On the other hand, DSOs are actively managing distribution grid congestion, moving away from the conventional fit and forget approach. As a result, the need for DSO-TSO cooperation has become increasingly important. In this study, we first discuss market and grid operation issues related to different system states and the corresponding congestion management approaches. Second, we discuss possible solutions that are inspired by inter-TSO cooperation solutions as well as solutions that are being adopted by DSOs. Our findings show that the issues are rather similar both at transmission and distribution level; however, the need for cooperation and the solutions will depend on where structural congestion will occur and which borders will be managed.
    • DSO-TSO cooperation issues and solutions for distribution grid congestion management

      Hadush, Samson Yemane; Meeus, Leonardo (Energy Policy, 2018)
      The role of DSOs is evolving due to the increasing penetration of intermittent and distributed energy resources in the distribution system. On the one hand, TSOs are accessing flexibility resources connected to the distribution grid. On the other hand, DSOs are actively managing distribution grid congestion, moving away from the conventional fit and forget approach. As a result, the need for DSO-TSO cooperation has become increasingly important. In this study, we first discuss market and grid operation issues related to different system states and the corresponding congestion management approaches, in the context of the European electricity market design and regulation. Second, we discuss viable solutions that are inspired by inter-TSO cooperation solutions as well as solutions that are being adopted by DSOs. Our findings show that the issues are rather similar both at transmission and distribution level; however, the need for cooperation and the solutions will depend on where structural congestion will occur and which borders will be managed. We also note that cooperation between DSOs as well as between DSOs and microgrids could become more important with the development of local energy markets in the long term.
    • Eandis: Financing the rollout of smart meters in a regulated environment

      Roodhooft, Filip; Momber, Ilan; Meeus, Leonardo; Hadush, Samson Yemane (2019)
      n 2014, Eandis System Operator CVBA (Eandis), a low- and medium-voltage power distribution system operator (DSO) in Belgium, had an ambitious plan for investing in a smart metering infrastructure, but the regulatory context was uncertain. The company had been operating in a regulated monopoly characterized by a cost-plus pricing regime. The regime allowed the company to recover its costs through the tariffs it charged grid users for access to the electricity distribution network. In recent years, the regime had motivated the company to invest in infrastructure; however, the cost-plus regime was about to be replaced by a new type of regulation based on incentives and the DSO's performance. Under the new regulation, DSOs could propose investments to the regulator, who then approved the investments based on a cost-benefit analysis. In this context, Eandis must decide whether to continue with its plan to invest in smart metering and, if so, how to structure the investment to appeal to the equity investors.
    • Emerging regulatory practice for new business related to distribution grids

      Meeus, Leonardo; Hadush, Samson Yemane (2016)
      Highlights: Activities related to new businesses, such as market facilitation (e.g. data hub operation), electrical storage, and electric vehicle- charging infrastructure are grey areas in regulation; In these grey areas, there is potential for a market approach, but there are also conditions which can prompt the involvement of DSOs; By taking stock of the emerging regulatory practice, we have identified the main elements that regulators need to consider when moving into these grey areas; If the approach is market based, the regulator needs to design the market; and check whether there is a need to correct market failures. To involve the DSOs is one way, but not the only way, to correct the market failures for new businesses; If the approach is to engage with the DSOs, the role of the regulator is to define the scope of the DSO involvement; to consider dedicated quality of service regulations for each of the new businesses that the DSO is involved in; and to make sure that the DSOs have sufficient incentives to innovate when investing in new businesses; The role of the DSOs in the energy value chain is diverging in Europe, which might be an issue for the ongoing market integration.
    • The future of DSOs. Our take on energy communities and regulatory sandboxes

      Broeckx, Saskia; Hadush, Samson Yemane; Ramos, Ariana; Meeus, Leonardo (2019)
      The energy transition is changing the energy ecosystem. Until recently, energy production was mostly centralised, with relatively few large power plants connected to the transmission system operated by transmission system operators (TSOs). Regulatory changes to accommodate the integration of renewable energy initially focused on the transmission aspect, which resulted in a significant transformation of the TSOs, while leaving the distribution system operator (DSO) landscape virtually unaffected. In recent years, however, due in part to advances in renewable energy technology, power generation and distribution have become more decentralised. DSOs now find themselves at the centre of change, operating the grid which all these new players – producers and prosumers – want to connect to and use. The challenge is for DSOs to enable and facilitate change, rather than becoming a bottleneck. In 2018 the DSO Chair organised two workshops to discuss topical issues facing the future of DSOs: (1) energy communities and (2) regulatory sandboxes. Despite being selected independently of each other, these two topics turned out to be interrelated.
    • Implication of European ITC mechanism on cross-border investment

      Hadush, Samson Yemane; De Jonghe, Cedric; Belmans, Ronnie (2013)
    • Implication of non-harmonized regulatory regimes on cross-border electricity transmission investment

      Huang, D.; Hadush, Samson Yemane; Van Hertem, Dirk; Belmans, Ronnie (2014)
    • Locational signals in electricity market design: Do they really matter?

      Hadush, Samson Yemane; Buijs, P.; Belmans, Ronnie (2011)
    • Regulation of smart grids

      Meeus, Leonardo; Hadush, Samson Yemane; Momber, Ilan (2016)
    • Review of transmission tariff methods and practices in Europe

      Hadush, Samson Yemane; Buijs, P.; Belmans, Ronnie (2010)
    • RTE: Financing electricity transmission investments in a regulated environment

      Roodhooft, Filip; Hadush, Samson Yemane; Meeus, Leonardo; Momber, Ilan (2019)
      Leading up to 2013, Réseau de Transport d’Électricité (RTE), a French transmission operator (TSO), was the largest TSO in Europe’s electricity network. Like all European TSOs, RTE was subject to regulatory regimes. At the end of 2013, RTE was operating under a revenue cap, which required that it seek the regulator’s approval before making capital investments. The company was poised to undertake an ambitious investment program in 2014 to replace aging assets. However, the potential for regulatory changes, the need for the regulator’s approval, and the long depreciation life of the assets made planning difficult. RTE needed to develop a financial planning model that would help it decide whether to make the investment and how to prepare for possible regulatory uncertainties.
    • The effect of welfare distribution and cost allocation on offshore grid design

      Hadush, Samson Yemane; De Jonghe, Cedric; Belmans, Ronnie (IEEE Transactions on Sustainable Energy, 2014)
      Innovative offshore grid designs such as integrating offshore wind farms (OWFs) with interconnectors are gaining popularity. Adequate investment in these designs requires aligning the interest of stakeholders through an appropriate cost allocation method. The aim of this paper is twofold. First, it shows how welfare distribution can influence a stakeholders offshore grid design choice. Second, it evaluates the effect of various cost allocation schemes in aligning diverse stakeholder interests toward efficient grid design. The results confirm that an investment in an efficient offshore grid design may not be guaranteed as long as the chosen cost allocation method ignores the welfare distribution effect. Most methods fail in this regard. Even when they provide cost incentives, they do not always ensure cooperation. Cognizant of this limitation, this study proposes a method that allocates costs in proportion to the incremental net benefit (PINB) of each stakeholder. This method reflects both the distribution of welfare and cost savings.
    • The implication of the European inter-TSO compensation mechanism for cross-border electricity transmission investments

      Hadush, Samson Yemane; De Jonghe, Cedric; Belmans, Ronnie (International Journal of Electrical Power & Energy Systems, 2015)
      An efficient cross-border investment and well-designed markets and regulatory instruments are crucial prerequisites to the creation of a fully functional European internal electricity market. One of the prominent regulatory measures taken to speed up the creation of the internal market was to abolish tariff pancaking by replacing cross-border tariffs with an Inter-Transmission System Operators Compensation (ITC) mechanism through which transmission system operators (TSOs) can compensate each other. In this study, the implication of introducing such mechanism on the cross-border investment outcome is explored. The results indicate that the current ITC mechanism is loosely linked to the cross-border investment decisions of TSOs. In addition, the study concludes that factors such as the ITC fund size and the number of participating TSOs can influence the investment outcome.
    • Who will lead the energy market in 2030?

      Momber, Ilan; Tackx, Koen; Hadush, Samson Yemane; Meeus, Leonardo (2015)
      There are many uncertainties that might determine the future of the energy industry in general and the landscape of network operation in particular. According to the Vlerick Energy Centre together with a team of European industry leaders two of these uncertainties call for deeper analysis as they are more relevant and most likely game changers for the power grid industry: consumer involvement and decentralised generation. Depending on the level of consumer involvement in energy choices and the amount of decentralisation of the energy resources four scenarios were developed on how the energy market in Europe could look like in 2030. The co-creation process was supervised by Prof Paul Schoemaker, the world-leading scenario-planning expert from Wharton School.