Regulators face the challenge of meeting rising demand while keeping grid services affordable for consumers. Beyond replacing aging assets, new infrastructure is required to connect renewable projects and support widespread electrification. Smarter use of existing grids — through digitalisation, demand management and efficiency measures — can reduce the need for costly, large-scale buildout.

In this Power System Blueprint deep dive, “Aligning business models with public interest: Rethinking revenue regulation for network companies,” author Zsuzsanna Pató examines how revenue regulation needs to evolve to better align with both consumer interests and climate goals. If regulators create the right incentives, network companies can control costs while delivering the capacity needed at the right scale and in the right locations. Maximising the use of existing grids means implementing the Efficiency First principle in the EU’s Energy Efficiency Directive with regards to power grids.