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    Emerging regulatory practice for new business related to distribution grids

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    Publication type
    Policy paper
    Author
    Meeus, Leonardo
    Hadush, Samson Yemane
    Publication Year
    2016
    Publication Number of pages
    6
    
    Metadata
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    Abstract
    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.
    Keyword
    Energy Markets, Energy Networks
    Knowledge Domain/Industry
    Special Industries : Energy
    DOI
    10.2870/127125
    URI
    http://hdl.handle.net/20.500.12127/5579
    Other links
    http://hdl.handle.net/1814/40330
    ae974a485f413a2113503eed53cd6c53
    10.2870/127125
    Scopus Count
    Collections
    Research Communication

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