• How to engage consumers in demand response: a contract perspective

      He, Yue; Keyaerts, Nico; Azevedo, Isabel; Meeus, Leonardo; Hancher, Leigh; Glachant, Jean-Michel (Utilities Policy, 2013)
      Nowadays, the European electricity systems are evolving towards a generation mix that is more decentralised, less predictable and less flexible to operate. In this context, additional flexibility is expected to be provided by the demand side. Thus, how to engage consumers to participate in demand response is becoming a pressing issue. In this paper, we provide an analytical framework to assess consumers' potential and willingness to participate in active demand response from a contract perspective. On that basis, we present policy recommendations to empower and protect consumers in their shift to active demand response participants.
    • The regulatory experience of Italy and the United States with dedicated incentives for strategic electricity transmission investment

      Keyaerts, Nico; Meeus, Leonardo (Utilities Policy, 2017)
      There is a trend in regulatory practice towards providing dedicated incentives for strategic investments. Italy and the United States have the longest experience with authorizing returns and risk-mitigating incentives that deviate from standard regulatory treatment for policy purposes. In these countries, the regulatory incentives are based on a case-by-case assessment of capital projects. We find that the Italian scheme is simpler, which reduces administrative costs. The U.S. scheme is more advanced in the case-by-case assessment. Even though dedicated incentives may be controversial, our analysis of both experiences shows that, notwithstanding significant learning costs, both schemes have facilitated substantial financial investment in strategically important infrastructure.