This chapter discusses how trends in technology translate into novel business models, which in turn require dedicated transactional agreements as well as adjusted regulation. Regulators and policymakers are taking on the challenge of facilitating the integration of electricity from renewable sources and leveraging the potential of digitalization in the energy sector. This furthers the evolution of regulation from the aim of reducing the cost of network provision to catering for a cost-increasing transformation of the network service. The cases of Germany and the Netherlands serve to illustrate: one showcasing incremental change and the other the need to leap ahead and reinvent to some extent. These national cases illustrate measures limiting grid users’ access to scarce network capacity, incentivizing their flexibility and encouraging network operators to innovate grid operation beyond the technical realm. The future for this sector, however, appears to take shape on a new, European level.
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 [...]
This edited book is intended to be a companion volume to our Handbook on Electricity Markets (Glachant, Joskow, and Pollitt, 2021). That book focused on wholesale electricity markets, looking at [...]
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