logo-eui RSCAS
FSR

Energy Policy


Energy Policy

News

25.09.2018

Unfiltered remarks from Florence (J.M. Glachant before the Madrid Forum)

Unfiltered remarks from Florence before the Madrid Forum by Jean-Michel Glachant, Director, Florence School of Regulation (European University Institute, Florence, Italy) The current rush towards […] read more

Energy Policy

WFER

News

19.03.2018

FSR in Mexico! The World Forum on Energy Regulation

This week, the FSR and its partners will be in Cancun to take part in the ‘The World Forum on Energy Regulation (WFER)’. The FSR delegation […] read more

Energy PolicyEnergy Union Law

FSR meets with Embassy of Italy in Brazil

As part of the FSR Global Programme, the Florence School of Regulation was in Brasilia from March 7 to 10 to further the cooperation with the Brazilian […] read more

Energy PolicyEnergy Union Law

News

16.03.2018

The FSR Collaborates with the Regulators of Brazil

The Florence School of Regulation delegation composed of Director Jean-Michel Glachant, Swetha RaviKumar Bhagwat, Head of Global Relations and Anne-Marie Kehoe, Energy Union Law Coordinator, […] read more

Energy Policy

brussels

News

30.01.2018

FSR Energy @ European Parliament | Debating CRM Reform and Low – Carbon Transition

On Tuesday 30th January, the Florence School of Regulation holds an exclusive launch event at the European Parliament, debating the proposed reform of Capacity Remuneration […] read more

Energy Policy

Ensuring competitiveness and integrity of wholesale energy markets: the regulators’ view | Podcast with Clara Poletti

Competitiveness of wholesale energy markets is a fundamental goal of the EU since more than 20 years. Recently, specific pieces of legislation like REMIT have […] read more

Energy Policy

Mind the gap: the proposed governance of the Energy Union

Written by Marie Vandendriessche This Topic of the Month will zoom in on the EU’s Energy Union, and particularly a novel part of it: the […] read more

Energy Policy

The Road to the Energy Union

Written by Marie Vandendriessche This Topic of the Month will zoom in on the EU’s Energy Union, and particularly a novel part of it: the […] read more

Energy Policy

News

23.11.2017

2nd Scholarship Award in Memoriam of Ana Aguado

Bernard Energy (BEA); the European Distribution System Operators’ Association for Smart Grids (EDSO for Smart Grids); the European Network of Transmission System Operators for Electricity […] read more

Page 1 of 512345

Unfiltered remarks from Florence (J.M. Glachant before the Madrid Forum)

- Energy Policy

Unfiltered remarks from Florence before the Madrid Forum

by Jean-Michel Glachant, Director, Florence School of Regulation

(European University Institute, Florence, Italy)

Jean Michel Glachant

The current rush towards a greener future directly corresponds to the European willingness to achieve a fully decarbonized market by 2050. Most Member States have already made great efforts to hit the targets, showing specific interest and support for renewables development.

However, the gas sector faces particular challenges ahead. Not only is its infrastructure facing radical changes to support the development of renewables, but it is also currently delivering green gases without remuneration for the system[1] and insurance[2] values that it delivers. Because we need gas operators to continue delivering the values in the future, these two positive externalities should be remunerated.

Contributions made by the gas industry to balance the electricity system cannot be ignored.

In the near future, there is no alternative other than gas to ensure the resilience of the electricity system, especially with the crucial phase-out of oil and coal. The gas industries existing infrastructures will provide the ramp-up and ramp-down needed to react both in a very short time-frame and at a large scale in case of extreme incidents. It is likely that these services will become even more valuable in the near future, with the increasing balancing needs triggered by the development of the renewables.

This might also enable gas operators to accelerate their transition towards a greener market at an earlier stage, through the power-to-gas process and “green-gas-to-power” generation, for example.

By reintroducing these positive externalities into the market, governments and NRAs would signal the holistic view needed for sector coupling and power market integration.

The corresponding regulatory framework could evolve in line with the European Commission’s long-term vision and could bring opportune developments in the sector. Both the short-term flexibility and the long-term stability of our European energy system would benefit from a long-term planning in which all externalities are revealed.

Considering that EU has no alternative to gas as a clean back-up for electricity in the near future, is it not the right time, just before the Madrid Forum, to open our minds to it?

[1] System value comes from the optimization of required investments. Gas storage can cope with large volumes to address peak workload requirements, and lower the cost of transmission by reducing the size of the transmission network.

[2] Insurance value comes from the guarantee of energy delivery. It is an insurance against supply outages and price spikes. LNG terminals provide diversified sources of supply, and a sufficient storage filling ensures security of supply for the whole gas system.

Join FSR Energy & Climate Community

Subscribe to our Newsletter

JOIN OUR MAILING LIST

Your contact information

* indicates required
Choose the type of updates that matter to you:
Data Collection Consent

Florence School of Regulation will use the information you provide on this form to be in touch with you and to provide updates about our upcoming online and residential events, publications and other activities. All you need to do to receive insightful updates from us is to click the button below:

GDPR

We use MailChimp as our marketing automation platform. By clicking below to submit this form, you acknowledge that the information you provide will be transferred to MailChimp for processing in accordance with their Privacy Policy and Terms.