ESAP Expert Workshop IV: Network Investments and Regulation

Background

Session 1 - Transmission network regulation and cost allocation

In a meshed network infrastructure, the benefits of certain investments are not always fully captured by the network operator building the infrastructure, but also spill over to neighbouring grid operators, states or countries. This can create issues regarding who should pay for new transmission and who decides whether a line is economically necessary.

Moderator: Georg Zachmann, Research Fellow, Bruegel

• The beneficiary pays - transmission cost allocation
   Jeffery Dennis, Director, Division of Policy Development at US Federal Energy Regulatory Commission
• Addressing barriers to new network investments
   Christophe Gence-Creux, Head of the Electricity Department, European Agency for the cooperation of Energy Regulators
• Is output-oriented regulation an adequate solution to reach a reliable and efficient network?
   Martin Crouch, Senior Partner Smarter Grids & Governance: Transmission, Office of Gas and Electricity Markets, UK


Session 2 Transmission ownership and system operation unbundling

Unbundling the electricity industry has resulted in the establishment of various arrangements of electricity transmission ownership and system operation. What are the advantages and disadvantages of certain arrangements, in particular, considering the increasing penetration of variable renewables?

Moderator: Sven Kaiser, Senior Export, E-Control

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   Richard F McMahon, Vice President, Energy Supply and Finance, Edison Electric Institute
• Challenges for an independent transmission operator in terms of ownership and system operation
   Carsten Lehmköster, Senior Manager Regulatory Management, Amprion

Session 3 - The future of distribution network and operation

New parties will appear in the area of distribution networks: an increased amount of distributed variable generation, more demand response and electric vehicles, which enable consumers to engage more in the energy market. Who should facilitate these services? How will the infrastructure necessary to enable these services be developed?

Moderator: Matti Supponen DG ENER, European Commission

• Future do's and don'ts of DSOs
   Denis Cagney, Director of Energy Networks, Renewables and Legal Division, Commission for Energy Regulation, Ireland
• Regional flexibility markets - use of market-based flexibilities for integration of renewable energies in distribution grids
   Siegfried Wanzek, Energietechnische Gesellschaft, Verband der Elektrotechnik Elektronik Informationstechnik
• Managing hot spots
   Pierre Mallet, Director of Innovation and Technical Strategy, Électricité Réseau Distribution France, EURELECTRIC

Session 4 - Distribution network charges 

The increased penetration of renewables, changes in consumption patterns, demand response and eventually electric vehicles will have consequences for distribution network operators. This session will present ongoing initiatives to ensure both efficient use of distribution networks and that costs imposed on distribution networks are reflected in the tariff structure.

Moderator: Manuel Baritaud, Senior Energy Analyst, IEA

• Cost-reflective distribution tariffs in Spain
   Francisco Laverón, Head of Energy Policies. Direction of Energy Policies, Iberdrola
• Experience of retail pricing reform in Australia
   Paul Smith, Chief Executive Australian Energy Market Commission