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The need for more flexibility in the regulation of smart grids - stakeholder involvement

: Friedrichsen, Nele; Brandstätt, Christine; Brunekreeft, Gert


International economics and economic policy 11 (2014), Nr.1-2, S.261-275
ISSN: 1612-4804
Fraunhofer ISI ()

Energy and climate policy drive large scale integration of distributed generation and demand side management, with massive consequences for distribution grids. New technologies and actors shape the transformation of electricity networks towards smart systems. We argue that future regulation of smart grids needs to allow more flexibility. Firstly, the core of network monopoly starts to weaken allowing for more third party involvement. Secondly, the increasing number and heterogeneity of stakeholders makes "one-size-fits-all" regulation simply less suitable, whilst regulation needs to take account of various interests. In this paper we discuss stakeholder involvement and make policy recommendations to render regulation of smart systems more flexible.