.jpg)
The EU Agency for the Cooperation of Energy Regulators (ACER) publishes today a new Position Paper inquiring the role of regulation in incentivising smart investments to improve the efficient use of electricity transmission assets.
ACER believes special focus should be given on how to facilitate the most efficient use of the existing grid and technologies, in order to enable the energy transition effectively. In this context, the regulatory framework has an important role to play in promoting innovative investments and providing the right incentives to increase the efficiency of the electricity transmission network.
In its position paper, ACER:
- Recognises the need to improve incentives for innovative solutions, especially those focusing on network efficiency and bringing immediate benefits to end consumers.
- Acknowledges the traditional regulatory framework favours high cost solutions over less costly ones - therefore affecting Transmission System Operators (TSOs)’ choices.
- Suggests a paradigm shift promoting a benefit-sharing regime to complement the classical cost-based remuneration scheme of the rate-of-return regulation.
- Explores the potential introduction of Key Performance Indicators (KPIs) to measure, in a harmonised way, the impacts and benefits of TSOs investments, as well as of KPI-based incentives to sustain innovative solutions.
Would you like to find out more?
Read the new ACER Position Paper.
