Conclusions | Working Group for optimising Power Grids - Aligning Incentive Regulation with Public Interest

September 2021

Thank you for joining us on the 7th of September to discuss regulatory incentives for TSOs and DSOs to aligning incentive regulation with public interest. 

Society’s perception of value changes with the increasing demand for green, smarter, and fairer energy. These significant changes in public demand are challenging system operators to keep the lights on at an affordable cost while integrating massive amounts of renewables and responding to substantial changes to maintain resiliency against climate change and cyber threats. The caretakers of our power grids, TSOs and DSOs, are embracing the fact that “gold plating” grid assets is not the optimal way to develop the future grid and that enabling network technology solutions can play a driving role in meeting the needs of both today and providing flexibility in the future. By taking this approach to maximising the use of the existing grid while also extending it when needed, TSOs and DSOs can deliver massive value for their network, market participants, and broader society. Incentive regulation can be an enabler of this approach and ultimately accelerate our progress towards a decarbonised grid.

To achieve the ambitious decarbonisation 2050 targets in the interest of the European public, our action in the next decade until 2030 is critical. As it becomes the backbone of energy access, regulation must be the right signal to ensure the delivery of secure and efficient electricity grids.
Key changes like moving to a TOTEX approach to enlarge the remunerated asset base and output-based regulation for a technology-neutral and inclusive approach to reaching supply security, reliability, and cost-efficiency objectives.
Regulation needs to evolve at a faster pace, not only to encourage efforts in implementation of innovation and risk-taking in R&D projects but to guide TSOs on how to assess the benefits of grid enhancing technologies in the way that it contributes to the efficiency of the use of existing as well as build-out of future infrastructure.
It is essential that all stakeholders, like the ones in the webinar from different perspectives, regulators, TSOs and industry to work together through knowledge sharing and discussions to ensure fast and massive deployment of innovative solutions for Europe to meet the climate targets.

SUMMARY

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OUR PANEL OF EXPERTS

Susanne Nies (currENT chair and General Manager Germany at Smart Wires)

Markus Berger (Chief Officer Infrastructure at Elia)

Nathan Appleman (Market Design Specialist at ENTSO-E)

Michael Berger (Expert network development at E-Control and Co-chair of ACER infrastructure efficiency expert group)

Riccardo Vailati (Officer at ARERA, Italian Regulatory Authority for Energy, Networks and Environment)

Vasiliki Klonari (Senior Analyst at WindEurope – System Integration & Digitalisation)

Rena Kuwahata (currENT co-chair and Business Development Manager at Ampacimon)

Alex Houghtaling (Vice-president of Sales at LineVision)

ADDITIONAL RESOURCES AND RELEVANT INDUSTRY ACTIVITIES