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Policy Brief

Response to ENTSO-E public consultation on cross-border participation in capacity mechanisms

By Christos Kolokathis, Philip Baker

At the end of January 2020, the European Network of Transmission System Operators for Electricity, ENTSO-E, opened a public consultation to solicit comments on its proposed methodologies associated with cross-border participation in capacity mechanisms. ENTSO-E is developing the methodologies in response to the requirement set out in the EU regulation on the inte...

Energy Resource Planning, Market Design, Reliability, Role of Regulatory Institutions Download View Summary
Report June 26, 2019

Performance-based regulation: Aligning incentives with clean energy outcomes

By Zsuzsanna Pató, Philip Baker, Jan Rosenow

For years European policymakers have been working toward an integrated, competitive energy system. Now the Clean Energy for All Europeans package directs Member States to develop a decarbonised, cost‑efficient energy system that provides consumers with access to affordable and secure energy. The urgency of this task is further heightened by climate concerns. Po...

Business Models, Revenue Regulation, Role of Regulatory Institutions, Role of Utilities Download View Summary
Policy Brief November 8, 2018

Regional resource adequacy assessments: The key to ensuring security of supply at a reasonable cost

By Christos Kolokathis, Philip Baker, Michael Hogan

The cost-efficient sharing of resources between Member States could save European consumers 8 billion euros annually by 2030 by reducing the need for investment in new resources to keep the lights on, according to the European Commission’s estimates. However, these benefits will largely remain unexploited if Member States continue with the current, uncoordinate...

Market Design, Reliability Download View Summary
Policy Brief October 12, 2018

Article 17 of the recast Internal Market Directive and the benefits of aggregated demand response

By Philip Baker

Explicit demand response provides an opportunity for “aggregated” customers to participate in wholesale electricity markets and profit from their demand flexibility without the risks and costs presented by dynamic tariffs. In doing so, these customers can significantly reduce the price of energy purchased by suppliers by offering a competitive alter...

Demand Response Download View Summary
Policy Brief October 1, 2018

Capacity market review in Great Britain: Response to the call for evidence

By Philip Baker

Five years after passing the Energy Act 2013, the government of Great Britain is conducting a review of the capacity market introduced by this legislation. The evaluation serves to determine whether the capacity market is still necessary and whether it is meeting the stated aims of ensuring cost-effective, secure supply. Government officials are also considering ...

Demand Response, Energy Resource Planning, Market Design, Reliability Download View Summary
Policy Brief

Realising the benefits of European market integration

By Philip Baker, Michael Hogan, Christos Kolokathis

Greater integration of wholesale energy markets in Europe holds enormous potential to benefit consumers in the region. The European Commission and others estimate that the increase in social welfare of fully integrating Europe’s electricity markets could exceed €40 billion annually by 2030. However, progress toward fully realising these public benefits dep...

Energy Resource Planning, Governance, Market Design, Reliability Download View Summary
October2517
Webinar (video)

Regionalisation of European electricity markets needs a more regional approach (Webinar)

The European Commission’s proposal to establish regional operational centres (ROCs) is a welcome step toward further integration of the EU internal electricity market. Yet, by expanding this proposal, policymakers could improve governance and the remit of the ROCs to ensure a truly regional, coordinated approach to efficient operation of Europe’s highly interconnected transmission system. In a webinar...

Presentation October 25, 2017

Regionalisation of European electricity markets needs a more regional approach

By Philip Baker, Julie Finkler

The European Commission’s proposal to establish regional operational centres (ROCs) is a welcome step toward further integration of the EU internal electricity market. Yet, by expanding this proposal, policymakers could improve governance and the remit of the ROCs to ensure a truly regional, coordinated approach to efficient operation of Europe’s highly int...

Energy Resource Planning, Integrating Renewable Energy, Regulation and Governance, Reliability Download View Summary
Report September 12, 2017

Next-Generation Performance-Based Regulation: Emphasizing Utility Performance to Unleash Power Sector Innovation

By David Littell, Camille Kadoch, Philip Baker, Ranjit Bharvirkar, Max Dupuy, Brenda Hausauer, Carl Linvill, Janine Migden-Ostrander, Jan Rosenow, Wang Xuan, Owen Zinaman, Jeffrey Logan

Performance-based regulation (PBR) enables regulators to reform 100-year-old regulatory structures to unleash innovations within 21st century power systems. Our current electric system is built upon an old regulatory paradigm that ensured safe and reliable electricity at reasonable prices from capital-intensive electricity monopolies. Today, disruptive technologi...

Regulation and Governance, Role of Utilities Download View Summary
Policy Brief August 30, 2017

Regional Operational Centres: A review of the Commission’s proposal and recommendations for improvement

By Philip Baker, Julie Finkler, Christos Kolokathis

Close coordination of Europe's power networks on a regional basis is important, as illustrated vividly in November 2006, when Europe came close to experiencing a widespread blackout. Since that time, Transmission System Operators (TSOs) have voluntarily worked together to increase regional coordination. In its 'Clean Energy for All Europeans' legislative package,...

Integrating Renewable Energy, Reliability, Transmission Planning Download View Summary