What is the best way to prevent capacity remuneration mechanisms (CRMs) of individual EU Member States from generating negative externalities in their neighbours?

Join us for the third and final instalment of the FSR Insights series’ quarterly theme “Securing Europe’s Energy Future”

Emma Menegatti, PhD candidate with the Loyola De Palacio Chair at the FSR, will present her working paper, co-authored with the FSR Director, Leonardo Meeus.

The paper models four types of externalities that the adoption of a capacity market can generate on a neighbouring energy-only electricity market zone, and compares the impact of three different approaches to cross-border participation: no participation, implicit participation, and explicit participation.

The webinar aims to shed light on the potential of cross-border participation in solving the cross-border issues caused by national capacity markets. This is a timely discussion, as CRMs are no longer seen as just a temporary or last-resort solution for security of supply issues. Instead, the latest EU market reforms recognize CRMs as a structural element of the electricity market.

Nevertheless, Member States willing to adopt a CRM must notify the European Commission (EC) and get state aid rules cleared. Following the 2024 Electricity Market Design reform, the EC is required to publish a report in early 2025 on streamlining and simplifying the process for applying for a capacity mechanism.

Derek Bunn, professor at the London Business School, and Eline Spyrou, lecturer at the Imperial College of London, will provide commentary on Emma Menegatti’s presentation, enriching the conversation with diverse perspectives. Moderated by Nicolò Rossetto and Marzia Sesini from FSR, the session will invite audience participation, encouraging an engaging and thought-provoking dialogue.

Keynote Speaker

Emma Menegatti | FSR

Discussants

Derek Bunn | London Business School

Eline Spyrou | Imperial College London

Moderators

Marzia Sesini | FSR

Nicolò Rossetto | FSR

Join us for the second instalment of the FSR Insights series’ quarterly theme “Securing Europe’s Energy Future”

Kian Mintz-Woo from University College Cork will present insights from his co-authored paper, which explores a proposed justice framework to address the complex implications of climate change and decarbonization.

The discussion will address key aspects such as the distribution of responsibilities among nations, the role of ethical considerations in policy-making, and practical approaches to implementing fair climate actions. The study emphasizes the need for deeper integration of these principles into climate scenario research to better inform policy-making and ensure fairer outcomes in tackling global climate challenges. Dr. Mintz-Woo will provide concrete examples to illustrate how fairness can be incorporated into climate policies to ensure both effectiveness and equity.

Philippe Delacote from INRAE, Amaia Palencia Esteban from LSE, and Jacopo Cammeo from FSR will provide their insights and critiques, enriching the conversation with diverse perspectives. Moderated by Marzia Sesini and Nicolò Rossetto from FSR, the session will invite audience participation, encouraging an engaging and thought-provoking dialogue.

Keynote Speaker

Kian Mintz-Woo | University College Cork

Discussants

Philippe Delacote | INRAE

Jacopo Cammeo | FSR

Amaia Palencia-Esteban | LSE

Moderators

Marzia Sesini | FSR

Nicolò Rossetto | FSR

The participation of some researchers in this event is co-funded by the SPES project financed by the Horizon Europe Programme of the European Commission, Grant agreement ID: 101094551

Securing Europe’s Energy Future: Join us for the first instalment of this quarterly theme in the FSR Insights series

Sebastian Zwickl-Bernhard from TU Wien will share his expert perspective on the evolving dynamics of LNG trade and the geopolitical challenges we anticipate by 2040. Drawing from his recent study, co-authored with Anne Neumann, he will highlight key findings on market integration, supply chain disruptions, and strategic shifts among major LNG players.

The discussion will address crucial aspects such as the influence of emerging markets, technological advancements, and policy responses to geopolitical tensions. Through concrete examples, Dr. Zwickl-Bernhard will illustrate how factors such as regional conflicts, technological breakthroughs in LNG extraction and transportation, and shifts in regulatory policies shape LNG trade flows, highlighting their direct implications for global energy security.

Experts Anna Cretì from Université Paris Dauphine, Anouk Honorè from OIES, and James Kneebone from FSR will provide their insights and critiques on the presentation. Moderated by Marzia Sesini and Nicolò Rossetto from FSR, the session will invite audience participation, encouraging a dynamic and engaging dialogue.

Keynote speaker

Sebastian Zwickl-Bernhard | TU Wien

Discussants

Anna Cretì | Université Paris Dauphine

Anouk Honorè | OIES

James Kneebone | FSR

Moderators

Marzia Sesini | FSR

Nicolò Rossetto  | FSR

FSR Insights series on “Developments in the European energy and climate policy” with FSR part-time professor Lena Kitzing

Contracts for Difference (CfDs) have been acknowledged by EU legislation as a fundamental tool to support the rapid uptake of renewable energy sources necessary to achieve the 2030 energy and climate targets. Discussions on how to properly design those contracts and how their massive use will impact the functioning of electricity markets have been common in the past few years, sometimes without a consensus emerging among researchers and policymakers.

In this new instalment of the FSR Insights series on “Developments in the European energy and climate policy”, FSR part-time professor Lena Kitzing will provide her view on those discussions and illustrate the key messages of a recent FSR technical report, where she and her co-authors highlight how CfDs can come in many shapes and how hard it is to generalise about them. By referring to some concrete examples, Prof. Kitzing will show how the selection of alternative design options can lead to different results and that those results depend also on the specific context in which such a CfD is applied.

Sofia Nicolai and Jörn Richstein will discuss Prof. Kitzing’s contribution before opening the floor to answer questions from the audience.

Keynote speaker

Lena Kitzing | FSR and DTU

Discussants

Sofia Nicolai | FSR

Jörn Richstein | Aurora Energy Research

Moderators

Nicolò Rossetto | FSR

On 29 May 2024, the FSR Insights series will start looking at ‘Developments in European energy and climate policy’, the new theme that will be the focus of the series until the summer break.

Dr. Bernardo Rangoni will illustrate some of the results of his extensive research on the governance of various industries, which was recently published in a book by Oxford University Press (Experimentalist Governance: From Architectures to Outcomes). He will focus on two issues at the heart of both the electricity and gas industry – network access and tariffication – and also touch upon more recent ones, such as market manipulation and renewables. By comparing the developments within and across the two sectors, he will show what conditions can lead to the emergence and resilience of non-hierarchical governance in energy and beyond.

Max Münchmeyer and Torbjørg Jevnaker from the FSR will discuss the contribution by Dr. Rangoni before opening the floor to questions from the audience.

Keynote speaker

Bernardo Rangoni | University of York, Antwerp and EUI

Discussants

Max Münchmeyer | EUI

Torbjørg Jevnaker | Cicero, FNI and EUI

Moderators

Marzia Sesini | EUI

Nicolò Rossetto | EUI

This is the third and last installment for the quarterly FSR Insights on ‘Innovation in Energy’- Watch the recording 

The episode will focus on the pivotal role of innovation in driving decarbonization efforts and navigating the dynamic shifts in the built environment.

The building sector plays a crucial role in achieving European energy and CO₂ reduction goals, accounting for over 40% of energy consumption and 36% of GHG emissions. Energy building renovation is key to reaching these targets, offering cost-effective emission mitigation potential and numerous societal and economic benefits. However, despite existing policies, the current renovation rate falls short of what would be socially optimal, necessitating a reimagining of delivery mechanisms.

In this episode, titled “Exploring Business Models for Urban Innovation” we will delve into the transformative potential of one-stop-shop (OSS) innovative business models in the energy renovation sector and how they can revolutionize energy home renovation, contributing significantly to European climate and energy goals.

Our Keynote Speaker will present her latest research on “Boosting energy home renovation through innovative business models: ONE-STOP-SHOP solutions assessment“, guiding us into the potential of OSS initiatives to overcome barriers and accelerate renovation efforts.  Alongside our discussants and audience, she will engage in a lively discussion on the topic, exploring the implications and opportunities presented by these innovative approaches.

FSR Insights is an online series hosted by Marzia Sesini and Nicolò Rossetto (FSR).

Keynote speaker

Annamaria Bagaini | Bocconi University

Discussants

Daniele Stampatori | FSR and Comillas Pontifical University

Isabel Azevedo | INEGI

FSR Insights continues to look at “Innovation in Energy”

In this FSR Insights, prof. Gert Brunekreeft will present his recent perspectives on incentive regulation for network companies, exploring in particular how specific innovation’s external or internal effects may call for different regulatory tools. Brunekreeft will also focus on regulatory tools promoting experiments and discuss the recent German experience (see his contributions here and here).- Watch the recorded session 

Innovation in energy networks is a non-negotiable ingredient for the energy transition. The shift to an energy mix dominated by renewable energy sources and the gradual electrification of final uses already challenge the traditional approach to grid planning and operation today. Network companies, either at the transmission or distribution level, must innovate to ensure cost containment, security of supply, and timely service delivery to their users.

However, network companies are heavily regulated businesses that react to the incentives and constraints introduced by regulators and policy-makers. Ensuring a regulatory framework conducive to innovation has been a long-standing focus of discussion. Countries in Europe and elsewhere have adopted different approaches to regulatory experimentation in energy, and a growing amount of evidence is now available on their efficacy (see, among others, Schittekatte et al., 2021).

Innovation is not a monolith; on the contrary, different types of innovation exist and are characterised by different features. Understanding these distinctions is crucial when selecting and designing regulatory tools to drive innovation in network companies. Brunekreeft will elaborate on this, discussing a market facilitation incentive mechanism, a digitalisation budget that applies sharing factors, and three alternative ways to enable risk-taking by network companies.

Filippo Bovera from Politecnico di Milano and Ellen Beckstedde from FSR will talk about prof. Brunekreeft’s contribution before opening the floor to questions from the audience.

Keynote speaker

Prof. Gert Brunekreeft | Constructor University Bremen

Discussants

Filippo Bovera | Politecnico di Milano

Ellen Beckstedde | FSR

FSR Insights is an online series hosted by Marzia Sesini and Nicolò Rossetto (FSR).

Our upcoming quarterly theme in FSR Insights revolves around “Innovation in Energy”.

Innovation is key in supporting the decarbonisation of the energy sector and providing an adequate response to the dramatic changes in international markets and the broader geopolitical landscape we have witnessed in the last few years.

The inaugural episode of the series, titled “Future Landscape of Green Hydrogen and Its Transformative Impact on Global Industries,” will explore the profound effects of technological development on existing energy value chains and the entire production-to-consumption lifecycle, reshaping interactions among stakeholders.

Our Keynote Speaker will present one of her latest articles, “Green hydrogen value chains in the industrial sector—Geopolitical and market implications”. The discussion, grounded in resource endowment, existing industrial production, and economic relatedness, will help us reflect on potential frontrunners in the future green hydrogen market and the geopolitical and market dynamics resulting from the transition in existing value chains.

Discussants will share their critiques and nuanced perspectives. The session will benefit from their balanced viewpoints, drawing on competencies in engineering, economics, and policy. The audience will be also encouraged to engage by posing questions and participating in the final discussion.

Keynote speaker  

Laima Eicke | Research Institute for Sustainability and the University of Erfurt  

Discussants  

Franziska Holz | DIW Berlin 

James Kneebone | FSR  

FSR Insights is an online series hosted by Marzia Sesini and Nicolò Rossetto (FSR).

Our next FSR Insights will be dedicated to launch the forthcoming edited book entitled Law in the EU’s Circular Energy System: biofuel, biowaste and biogas (Edward Elgar, Dec. 2023), edited by Lucila de Almeida and Josephine van Zeben.

Watch the recording

Adopting a holistic and multidisciplinary approach, this book comprehensively maps out the complex multi-jurisdictional legal landscape pertaining to the EU’s circular energy system concerning the production and consumption of biogas and biofuel produced from biowaste.
In three thematic sections, the expert contributors first examine the interactions between EU law and policy for waste, agriculture, food, and forestry. Focus is drawn to how, when, and by whom the energy sources created from biowaste can become part of the EU’s energy mix. A range of legal instruments that impact the financing of the circular energy system through taxation, EU financing, and state aid are also considered. The book concludes by reflecting on inefficiencies and ineffectiveness caused by these interactions of legal and policy areas related to the circular energy system.

The FSR insights will gather editors and some contributors to share the insights of the edited volume with the audience.

Host & Speaker:

Lucila de Almeida (FSR & NOVA School of Law)

Speakers:

Josephine van Zeben (Wageningen University & Research)

Lin Batten (University of Strathclyde)

Elisa Cavallin (University of Gent & University of Hasselt)

Discussants:

Sofia Nicolai (FSR)

Ginevra Le Moli (FSR)

In this event, we discuss key unanswered questions about nodal pricing before looking at alternative actions to improve locational signals in the electricity system in Europe, including via the smarter use of LMPs.

Watch the recording:

Locational marginal prices (LMPs) are an important design feature of several well-developed electricity markets, particularly in the US. They involve the calculation of energy prices which reflect congestion and losses at particular nodes in the electricity network. They have been hotly debated in Australia and Great Britain, but not implemented so far.

In this event, we explore whether and how European countries should adopt LMPs.

The author of the paper Locational marginal prices for electricity in Europe? The Untold Story, Michael Pollitt (University of Cambridge) will be joined by Tim Schittekatte (MIT) and Ellen Beckstedde (Vlerick Business School) in the role of discussants.

FSR Insights is an online series hosted by Leonardo Meeus and Lucila de Almeida (FSR).

Learn more

Evolution of Electricity markets in Europe online course
What English gardens, monkeys and the Titanic have to do with bidding zones event highlights
Zonal versus Nodal Electricity Pricing: the PJM experience podcast

Fighting the wrong battle? A critical assessment of arguments against nodal electricity prices in the European debate article

In this episode of FSR Insights, our hosts Leonardo Meeus and Lucila de Almeida will be joined by Anne Van Valkengoed from the University of Groningen to discuss her research on climate policy and the psychology of climate change adaptation.

Assessing human behavioural change is crucial for shaping the right policy framework for climate adaptation. In light of this, policies and regulations should also consider psychological sciences to better address possible obstacles to act against climate change. This event presents a valuable opportunity to delve into the subject.

As part of the Horizon-funded project, CAPABLE, the Climate research team at the FSR is currently contributing to capture climate policy’s multidimensional outcomes and implications based on the most up-to-date knowledge and methods on economics, sociology, political sciences, and psychology.

Hosts:

Leonardo Meeus and Lucila de Almeida, Florence School of Regulation

Speaker:

Anne Van Valkengoed, University of Groningen

Discussants:

Alessia Casamassima, Florence School of Regulation

Keith Smith, ETH Zürich

More on the CAPABLE project

CAPABLE is a Horizon Europe project led by CMCC that will provide recommendations for designing socially and economically acceptable climate policy measures for 2030 and beyond. CAPABLE will draw on economics, sociology, political sciences, and psychology to capture climate policy’s multidimensional outcomes and implications. It started in January 2023 and will run until December 2025.

#FSRInsights

The FSR Insights series features world-class academics from the energy field, as well as the FSR research team members in the role of discussants, to investigate timely energy topics and future scenarios.

Are pipelines and ships an ‘either or’ decision for Europe’s hydrogen economy?

The European Union is targeting 10 million tonnes of hydrogen imports per year by 2030, up from zero today. If even 50% of this target is to be reached it will require huge investment in entirely new value chains to facilitate these imports, with ships and pipelines being the obvious infrastructural options. But are they an ‘either-or’ choice? Can we consider this choice to be two sides of the same coin, much like we do with natural gas? Are there opportunity costs in scaling parallel infrastructure? What are the cost and scalability implications of these options? What vector would we ship and what is the end product we are after? Is there meaningful security of supply concern?

In this FSR Insights event, James Kneebone, FSR presents the results from a policy paper co-written with Andris Pieblags on these subjects.

The presentation explores the limitations and opportunities of different technological choices, as well as the relationships between different parallel value chains for clean hydrogen and its derivatives. The results of the paper give some pause for thought on how we frame planning for the role of clean molecule imports in our energy system and offer some optimistic reflections on the position of Europe in global hydrogen value chains moving forward.

The panel of discussants includes a great balance of engineering, political science, and economics expertise. Following the presentation, each discussant will have the opportunity to give their critique and perspective on the issue, before the audience and hosts will be invited to intervene with their questions.

Hosts

Leonardo Meeus | Florence School of Regulation (FSR)

Lucila de Almeida | FSR & Nova School of Law

Keynote Speaker

James Kneebone | Florence School of Regulation

Discussants

Alejandro Nuñez-Jiminez | ETH Zurich & Harvard Belfer Center

Sara Giarola | Polytechnic of Milan, EIEE & Imperial College London

Timo Gerres | Instituto de Investigación Tecnológica