/ Publications / Assuring a sustainable decarbonization : affordability options
Article
Assuring a sustainable decarbonization : affordability options
12 July 2023
Authors: SCHITTEKATTE, Tim; BATLLE, Carlos
Europe started to go through an extremely severe energy crisis in the summer of 2021. The Brussels-based think tank Bruegel reported that governments spent billions of euros, representing several percentage points of their gross domestic product, to shield consumers and industry from high prices ( Figure 1 ). Even when considering that substantial public support, many end users were (at the time of writing, in February 2023) still facing energy affordability issues. At that time, it was not possible to foresee the end and whether an unprecedented scenario of a period of sustained high prices could repeat itself. However, what the energy crisis showed was that although it was a gas crisis, the current regulatory power market compound proved to be fragile to political interference. In this article, we elaborate upon a proactive regulatory-driven solution with the aim to protect (certain tranches of) end users from periods of sustained high electricity prices. Thereby, political turmoil leading to potential negative consequences for the ongoing decarbonization process can be avoided. We call our proposal affordability options.
Adequate, reliable and well interconnected energy networks are a prerequisite for a well functioning internal energy market and for meeting EU’s energy and climate policy objectives on greenhouse gases, cost-competitiveness [...]
Electricity network companies can innovate their own network business or stimulate system innovation, including by facilitating market activities and the integration of renewable energy sources. Regulation is essential to turn [...]
To enable deep electrification of the economy, a significant expansion of grid distribution capacity will be required. However, how much grid investments eventually will be needed depends on how the [...]
Join our community
To meet, discuss and learn in the channel that suits you best.
We use cookies to help personalise content and provide a better experience. By clicking Accept all, you agree to this, as outlined in our Cookie Policy. To change preferences or withdraw consent, please update your Cookie Preferences.