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Assessment of electricity distribution business model and market design alternatives: Evidence for policy design

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  • Guillermo Ivan Pereira
  • Patrícia Pereira da Silva
  • Deborah Soule

Abstract

The transition toward smart electricity distribution grids is transforming the European electricity sector. This has contributed to increased attention by policy makers regarding the future role of electricity distribution system operators in a more flexible, digital, and renewables-based electricity system. A better understanding on how to support the adaptation of the electricity distribution industry can contribute to the introduction of an effective policy framework. Our research provides evidence for policy design by presenting the results of a Policy Delphi study focused on business model and market design adaptation alternatives. We highlight the importance of supporting innovation and a more proactive approach to adaptation from both distribution system operators and regulators. Our findings support the importance of electricity distribution for neutral market facilitation, contributing to market development and enabling new market players. The results obtained support policy makers working on electricity sector adaptation and can contribute to the ongoing market redesign efforts under the Energy Union.

Suggested Citation

  • Guillermo Ivan Pereira & Patrícia Pereira da Silva & Deborah Soule, 2020. "Assessment of electricity distribution business model and market design alternatives: Evidence for policy design," Energy & Environment, , vol. 31(1), pages 40-59, February.
    • Handle: RePEc:sae:engenv:v:31:y:2020:i:1:p:40-59
    DOI: 10.1177/0958305X18758248
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    References listed on IDEAS

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    Cited by:

    1. Duma, Daniel & Pollitt, Michael G. & Covatariu, Andrei & Giulietti, Monica, 2024. "Defining and measuring active distribution system operators for the electricity and natural gas sectors," Utilities Policy, Elsevier, vol. 87(C).
    2. Covatariu, A. & Duma, D. & Giulietti, M. & Pollitt M., 2023. "Toward an operational definition and a. methodology for measurement of the active DSO (distribution system operator) for electricity and gas," Cambridge Working Papers in Economics 2348, Faculty of Economics, University of Cambridge.
    3. Pereira, Guillermo Ivan & Pereira da Silva, Patrícia & Cerqueira, Pedro André, 2020. "Electricity distribution incumbents' adaptation toward decarbonized and smarter grids: Evidence on the role market, regulatory, investment, and firm-level factors," Energy Policy, Elsevier, vol. 142(C).

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