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The main challenges to achieve an integrated European smart-grid

September 19th, 2014 by Tamar Gomez, Research assistant, IFP School

The EU commission faces several challenges in order to convert a budding yet timely effort in smart grid research into a full grown market with its infrastructures and set of rules They are are of different nature: regulatory, economic and social.
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Paying for kWh, kW or km?

September 8th, 2014 by Claude Crampes, Toulouse School of Economics

Traditionally, the distribution charge paid by consumers of electricity connected to a grid is based on the capacity for which they subscribe and the number of kWh withdrawn during a given period. Energy consumption is however actually a poor approximation of the willingness to pay for being connected. Additionally, except for thermal losses, the cost incurred by distribution system operators (DSO) does not depend on the quantity transported. The main raison d’être of the kWh index is that it is indispensable for producers and suppliers. Since it is an existing gauge provided by installed meters, why not use it for distribution? Continue reading »

Money for Nothing

May 14th, 2014 by Severin Borenstein, Haas Business School, UC Berkekey

Since the beginning of electricity grids, demand has fluctuated and supply has been made to follow along. But for decades, economists and some grid engineers have dreamed of having demand play a more active role in balancing the system. With increasing use of intermittent renewable energy resources, now is the time to make that demand-response dream come true. But we can only get there if we clear up a common misconception in the world of electricity policy.
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Ukraine – Russia: EU should examine every possibility to put an end to present crisis, says Dominique Ristori

March 23rd, 2014 by François Lévêque, Ecole des mines de Paris

Harmonizing electricity TSO regulation: the case of North-West EU

February 16th, 2014 by Jean-Michel Glachant, European University Institute

The study of five EU regulatory regimes for electricity TSOs (Belgium, Germany, Great-Britain, France and the Netherlands) suggests that their designs encompass strong tensions and trade-offs and that they are significantly heterogeneous. However, this heterogeneity should no longer be valid, as the European Union is pushing more than ever to prompt for wider integration and increasing interactions between power networks and power systems. In any regional EU market, the economic properties of national regulatory regimes must consequently be realigned and harmonized as to deliver more EU common good. Continue reading »

European power utilities: under pressure?

January 22nd, 2014 by Koen Groot, Clingendael International Energy Programme

The European power sector is challenged by a series of developments. These range from planned changes to the institutional environment and the functioning of the market, to unforeseen external shocks like the decline of demand as a result of the economic and financial crisis and the German decision to completely phase out nuclear energy after all. The challenges also include the unexpected results of foreseeable developments, such as the impact of renewable energy sources (RES) on business models terms of profit margins and system requirements.
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The French Disconnection: reducing the nuclear share in France’s Energy Mix

January 15th, 2014 by David Buchan, Oxford Institute for Energy Studies

France has entered into a national debate about its energy transition to meet its long range target to reduce CO2 emissions by 75 per cent by 2050, while maintaining security of supply and the competitiveness of French industry. It is a muddled debate, because the trigger for it is an electoral commitment by President François Hollande to reduce the nuclear share in the country’s electricity mix from over 70 per cent today to around 50 per cent by 2025, a commitment that few people in France – and maybe not even the president himself – regard as sensible or feasible to carry out to the letter. Indeed the origin of the commitment is almost an accident of electoral politics. And the national debate has done little to clarify the issue. Continue reading »

Making the internal electricity market work

December 20th, 2013 by Martin Godfried, University of Amsterdam

At first glance, the integration of the internal electricity market seems to be on track. However, when taking a closer look it is clear that without an extra effort, much of the work done over the last decade may be at risk.
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The Gains And Pain Of Energiewende

December 2nd, 2013 by Fereidoon Sioshansi, EEnergy Informer

Germans, as everyone knows, are an efficient lot. Once they put their mind to it, they deliver results. For some time, Germany has been on the path of increasing its reliance on renewables – the marching order was further fortified when Chancellor Angela Merkel decided to immediately shut down half of the country’s operating reactors following the Fukushima disaster in 2011 and hastily phase out the remaining ones by 2022.
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A Proposal for Reforming an Electricity Market for a Low-Carbon Economy

November 8th, 2013 by Raphael Heffron, University of Stirling

The UK is currently reforming its electricity sector. This gives rise to some pertinent questions: Do the reforms go far enough and can more reforms be expected in the near future?

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