New trends in electricity regulation: the case of the EU

This FSR online debate will shed some light on the new trends in EU electricity regulation, and how it’s adapting to decarbonisation, digitalisation, and distribution grid challenges.

The European Union has one of the most developed electricity systems in the world. Its citizens and firms normally enjoy reliable and affordable access to electricity wherever they are. Building on this solid starting point, the EU aims to decarbonise its electricity mix over the next decade, expand the use of electricity, and put consumers at the centre.

Delivering efficiently on these commitments challenges regulators across the continent and calls for an evolution of the regulatory framework. Solutions designed in the 1990s during the liberalisation of the industry are no longer entirely fit for purpose. Investment needs in grids have increased sharply due to renewables and electrification of final uses. At the same time, and for similar reasons, distribution grids have gained prominence. Innovation is essential to ensure efficiency while providing high-quality services.

This FSR online debate will shed some light on the new trends in EU electricity regulation. European policymakers and regulators are aware of the profound transformations taking place in the industry and have been keen to adapt and explore new solutions over the past years. Although the pace of innovation is not uniform and, in some cases, not consistent with the necessities of a rapid decarbonisation of the economy or the opportunities offered by technology, the EU and its Member States are a sort of regulatory lab, featuring some of the best practices at the world level.