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The Relevance of Unbundling for Large-Scale Res-E Grid Integration in Europe

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  • Hans Auer

    (Assistant Professor Energy Economics Group (EEG), Vienna University of Technology, Gusshausstrasse 25-29/373-2 1040 Wien, Austria)

Abstract

Market integration of RES-E generation technologies is one of the core topics in the energy policy agenda of the European Commission (EC). However, legislation in this context still faces a variety of shortcomings (e.g. ignoring basic unbundling principles) in almost all Member States of the European Union (EU). Therefore, the major objective of this paper is to comprehensively discuss several dimensions of correct unbundling in the context of large-scale RES-E grid integration. Moreover, currently existing demarcation lines between the RES-E power plant, the grid infrastructure and overall system operation are questioned. It is also shown that there exist partly conflicting interests in cost remuneration of different disaggregated cost elements (grid connection costs, grid reinforcement/upgrading costs, extra system operation costs) for different market actors (RES-E developer, grid operator, system operator). It is concluded that only a convergence of different ongoing policies (RES-E promotion policy and grid regulation policy) guarantees the fulfilment of the ambitious goals of the EC on large-scale RES-E grid integration with minimal costs for society.

Suggested Citation

  • Hans Auer, 2006. "The Relevance of Unbundling for Large-Scale Res-E Grid Integration in Europe," Energy & Environment, , vol. 17(6), pages 907-928, November.
    • Handle: RePEc:sae:engenv:v:17:y:2006:i:6:p:907-928
    DOI: 10.1260/095830506779398858
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    References listed on IDEAS

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    1. Hans Auer & Claus Huber & Thomas Faber & Gustav Resch & Carlo Obersteiner & Lukas Weissensteiner & Reinhard Haas, 2006. "Economics of large-scale intermittent RES-E integration into the European grids: analyses based on the simulation software GreenNet," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 25(3/4), pages 219-242.
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    Cited by:

    1. Vogel, Philip, 2009. "Efficient investment signals for distributed generation," Energy Policy, Elsevier, vol. 37(9), pages 3665-3672, September.

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