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Policy and regulatory roadmaps for the integration of distributed generation and the development of sustainable electricity networks (SUSTELNET)

Objective


Objectives and problems to be solved:
Liberalisation and internationalisation of the European electricity market have resulted in efforts to harmonise transmission pricing and regulation in the EU. Although technological developments and EU targets for RES penetration and GHG reduction are decentralising the electricity infrastructure and services, no initiative exists to consider the market opening and regulation of distribution networks to the ensure effective participation of RES and DG in the internal market. This project provides the analytical background and organisational foundation for a regulatory process that satisfies this need.
The objectives of this research project are aiming at:
- Analyse the long-term technical, socio-economical and institutional dynamics underlying the changes in the architecture of the European electricity infrastructure and markets;
- Develop medium-to-long term transition strategies for network regulation and market transformation to facilitate the integration of RES and decentralised electricity systems;
- Lay the foundations for a participatory regulatory process on the regulation of distribution networks in the EU.

Description of the work:
The project will deliver regulatory road maps for the transition to an electricity market and network structure that creates a level playing field between centralised and decentralised generation and network development, and facilitates the integration of RES, within the framework of the liberalisation of the EU electricity market. The project is divided in an analytical part and a participatory regulatory process. The analytical part identifies the long-term historical and future technical, socio-economical and institutional dynamics that shape the European electricity systems and markets. The underlying patterns thus identified provide the boundary conditions and levers for policy development to reach long term RES and GHG targets (2020-2030 time frame). It is consequently analysed what regulatory actions are needed on the short-to-medium term to achieve the medium term goals for 2010 as well as likely scenarios for longer term goals. Existing MS regulatory regimes are reviewed and a comparative analysis of their impact on the integration of DG and RES is conducted. Specific issues that will be addressed are the regulatory incentives to distribution companies, the allocation of benefits and costs of DG, and market access for DG. Criteria are established for the development of electricity policy and network regulation. Current MS regulatory regimes are then benchmarked against these criteria and an agenda for regulatory changes is established.

Expected results and Exploitation Plans:
To deliver a fully operational road map a participatory regulatory process is initiated that will bring together EU and MS electricity regulators and policy makers, distribution and supply companies, as well as representatives from other relevant institutions. Through this regulatory process the project can have a significant impact on the medium-to-long term transformation of electricity systems and the integration of RES and decentralised generation in the EU.

Funding Scheme

CSC - Cost-sharing contracts

Coordinator

ENERGY RESEARCH CENTRE OF THE NETHERLANDS
Address
3,Westerduinweg 3
1755 ZG Petten
Netherlands

Participants (10)

ECON FILIAL AF ECON SENTER FOR OKONOMISK ANALYSE AS NORGE
Denmark
Address
Vester Sogade 10, 2
1601 Copenhagen V
EGU - ENERGETICKY USTAV, A.S.
Slovakia
Address
Kominarska 2-4
83203 Bratislava
ELSAM ENGINEERING A/S
Denmark
Address
Kraftvaerksvej 53
7000 Fredericia
ENVIROS S.R.O.
Czechia
Address
Na Rovnosti 1
130 00 Praha 3
FONDAZIONE ENI ENRICO MATTEI
Italy
Address
Corso Magenta 63
Milano
MAKK ALAPITVANY
Hungary
Address
Meszaros U 18. Ii.23
1016 Budapest
OEKO-INSTITUT E.V. - INSTITUTE FOR APPLIED ECOLOGY
Germany
Address
Binzengruen 34A
79038 Freiburg (In Breisgau)
THE POLISH NATIONAL ENERGY CONSERVATION AGENCY
Poland
Address
Nowogrodzka 35/41
00 691 Warszawa
UNIVERSITY OF WARWICK
United Kingdom
Address
Gibbet Hill Road
CV4 7AL Coventry
ZENTRUM FUER ZUKUNFTSENERGIESYSTEME E.V
Germany
Address
Altenkesseler Strasse, 17
66115 Saarbruecken