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Innovating grid regulation to regulate grid innovation: From the Orkney Isles to Kriegers Flak via Italy

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  • Meeus, Leonardo
  • Saguan, Marcelo

Abstract

In the current context of a decarbonizing electricity system, grid innovation is needed to deal with the main challenges of integrating distributed generation, demand and storage, and large-scale renewable energy sources. Grid companies however have disincentives to innovate under the conventional regulatory framework, and if they do innovate, they are confronted with grid users that have disincentives to participate in the innovation. This paper analyzes three empirical cases where state of the art regulatory frameworks have been successful at stimulating grid innovation. The main lesson learned from the cases is that there is experience with addressing the disincentive of grid companies to innovate, but the participation of grid users in the innovation is much more an open issue.

Suggested Citation

  • Meeus, Leonardo & Saguan, Marcelo, 2011. "Innovating grid regulation to regulate grid innovation: From the Orkney Isles to Kriegers Flak via Italy," Renewable Energy, Elsevier, vol. 36(6), pages 1761-1765.
    • Handle: RePEc:eee:renene:v:36:y:2011:i:6:p:1761-1765
    DOI: 10.1016/j.renene.2010.12.005
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    Cited by:

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    2. Cambini, Carlo & Congiu, Raffaele & Jamasb, Tooraj & Llorca, Manuel & Soroush, Golnoush, 2020. "Energy Systems Integration: Implications for public policy," Energy Policy, Elsevier, vol. 143(C).
    3. Nykamp, Stefan & Andor, Mark & Hurink, Johann L., 2012. "‘Standard’ incentive regulation hinders the integration of renewable energy generation," Energy Policy, Elsevier, vol. 47(C), pages 222-237.
    4. Karim L. Anaya & Monica Giulietti & Michael G. Pollitt, 2022. "Where next for the electricity distribution system operator? Evidence from a survey of European DSOs and National Regulatory Authorities," Competition and Regulation in Network Industries, , vol. 23(4), pages 245-269, December.
    5. Schittekatte, Tim & Meeus, Leonardo & Jamasb, Tooraj & Llorca, Manuel, 2021. "Regulatory experimentation in energy: Three pioneer countries and lessons for the green transition," Energy Policy, Elsevier, vol. 156(C).
    6. Lo Schiavo, Luca & Delfanti, Maurizio & Fumagalli, Elena & Olivieri, Valeria, 2013. "Changing the regulation for regulating the change: Innovation-driven regulatory developments for smart grids, smart metering and e-mobility in Italy," Energy Policy, Elsevier, vol. 57(C), pages 506-517.
    7. Leonardo Meeus, 2015. "Offshore grids for renewables: do we need a particular regulatory framework?," Economics of Energy & Environmental Policy, International Association for Energy Economics, vol. 0(Number 1).
    8. Colmenar-Santos, Antonio & Monzón-Alejandro, Oscar & Borge-Diez, David & Castro-Gil, Manuel, 2013. "The impact of different grid regulatory scenarios on the development of renewable energy on islands: A comparative study and improvement proposals," Renewable Energy, Elsevier, vol. 60(C), pages 302-312.
    9. Gaspari, Michele & Lorenzoni, Arturo, 2018. "The governance for distributed energy resources in the Italian electricity market: A driver for innovation?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3623-3632.
    10. Gaspari, Michele & Lorenzoni, Arturo & Frías, Pablo & Reneses, Javier, 2017. "Integrated Energy Services for the industrial sector: an innovative model for sustainable electricity supply," Utilities Policy, Elsevier, vol. 45(C), pages 118-127.
    11. Bovera, Filippo & Lo Schiavo, Luca, 2022. "From energy communities to sector coupling:a taxonomy for regulatory experimentation in the age of the European Green Deal," Energy Policy, Elsevier, vol. 171(C).
    12. Xenias, Dimitrios & Axon, Colin J. & Whitmarsh, Lorraine & Connor, Peter M. & Balta-Ozkan, Nazmiye & Spence, Alexa, 2015. "UK smart grid development: An expert assessment of the benefits, pitfalls and functions," Renewable Energy, Elsevier, vol. 81(C), pages 89-102.

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