Changing the Regulation for Regulating the Change: Innovation ‐ Driven Regulatory Developments in Italy: Smart Grids, Smart Metering and E‐Mobility

Schiavo, Luca Lo; Delfanti, Maurizio; Fumagalli, Elena; Olivieri, Valeria

doi:10.2139/ssrn.1963734

Cited by 29 publications

(39 citation statements)

References 6 publications

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“…There is an increasing agreement in the literature that current regulation is unlikely to meet the new challenges raised by "smart" technologies (Lo Schiavo et al, 2013). This might be explained by three main orders of reasons.…”

Section: Why Should Regulation Evolve?mentioning

confidence: 99%

“…The barriers and uncertainties surrounding the implementation of SGs call for an explicit support of the initial investments (Lo Schiavo et al, 2013;Pérez-Arriaga, 2010). Regulation should, therefore, evolve in order to incentivize the deployment of these technologies without creating economic rents.…”

Section: Why Should Regulation Evolve?mentioning

confidence: 99%

“…The control of non-technical energy losses (e.g. electricity thefts) is another potential benefit of this technology, which may be an important advantage even in western countries (Lo Schiavo et al, 2013). Hence, the adoption of such technologies can help European countries in their pursuit of the objectives on climate change, renewable energy penetration and energy efficiency (Pollitt, 2012;Clastres, 2011).…”

Section: Introductionmentioning

confidence: 99%

“…The investment in such technologies may result in a lower regulatory asset base (RAB), reducing the regulated firm's incentives to adopt these technologies (Lo Schiavo et al, 2013;Pérez-Arriaga, 2010;Joskow, 2008). 8 Thus, it raises important questions as the regulated firm may be more concerned with the eventual reduction of its allowed expenses in the future than with the operational gains from the adoption of these innovations.…”

Section: Introductionmentioning

confidence: 99%

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The Impact of Regulation on a Firm’s Incentives to Invest in Emergent Smart Grid Technologies

Costa¹,

Bento²,

Marques³

2017

The Energy Journal

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This paper analyzes the implementation of new technologies in network industries through the development of a suitable regulatory scheme. The analysis focuses on Smart Grid (SG) technologies which, among others benefits, could save operational costs and reduce the need for further conventional investments in the grid. In spite of the benefits that may result from their implementation, the adoption of SGs by network operators can be hampered by the uncertainties surrounding actual performances. A decision model has been developed to assess the firms' incentives to invest in "smart" technologies under different regulatory schemes. The model also enables testing the impact of uncertainties on the reduction of operational costs, and of conventional investments. Under certain circumstances, it may be justified to support the development and early deployment of emerging innovations that have a high potential to ameliorate the efficiency of the electricity system, but whose adoption face many uncertainties.

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Section: Why Should Regulation Evolve?mentioning

confidence: 99%

Section: Why Should Regulation Evolve?mentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

The Impact of Regulation on a Firm’s Incentives to Invest in Emergent Smart Grid Technologies

Costa¹,

Bento²,

Marques³

2017

The Energy Journal

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“…Similarly, the importance of smart grid technologies as a means to modernise the network and provide vital economic and social benefits is widely recognised [16]. Even though these smart solutions are generally deemed highly beneficial due to their potential to defer or avoid costly investments in capital intensive assets, they can also lead to additional cost trade-offs associated with higher operational costs (e.g., DR payments) and increased power losses and emissions compared with traditional networks with upgraded lines and substations [17].…”

Section: Introductionmentioning

confidence: 99%

Regulatory capital and social trade-offs in planning of smart distribution networks with application to demand response solutions

Ceseña

Turnham

Mancarella

2016

Electric Power Systems Research

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Under the current UK regulatory framework for electricity distribution networks, asset upgrades are planned with the objectives of minimising both capital costs (and thus customer fees) and social costs such as those associated with carbon emissions and customer interruptions. This approach naturally results in economic trade-offs as network solutions meant to reduce social costs typically increase (sometimes significantly) capital costs, and vice versa. This can become an issue in a smart grid context where new operational solutions such as Demand Response (DR) may emerge. More specifically, even though there is a general belief that smart solutions will only provide benefits due to their potential to displace investments in costly assets (e.g., lines and substations), they may also introduce trade-offs associated with increased operational expenditure, power losses and emissions compared with networks with upgraded assets. On the other hand, the flexibility inherent in smart solutions could be used to balance the different types of costs, leading to attractive cost trade-offs if properly modelled, quantified and regulated. However, given the fundamental "non-asset" nature of DR, properly quantifying the resulting trade-offs so

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Fostering Sustainable Mobility in Europe: The Contributions of the Project “E-Mobility North Sea Region”

Filho¹,

Rath²,

Mannke³

et al. 2015

E-Mobility in Europe

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Changing the Regulation for Regulating the Change: Innovation ‐ Driven Regulatory Developments in Italy: Smart Grids, Smart Metering and E‐Mobility

Cited by 29 publications

References 6 publications

The Impact of Regulation on a Firm’s Incentives to Invest in Emergent Smart Grid Technologies

The Impact of Regulation on a Firm’s Incentives to Invest in Emergent Smart Grid Technologies

Regulatory capital and social trade-offs in planning of smart distribution networks with application to demand response solutions

Fostering Sustainable Mobility in Europe: The Contributions of the Project “E-Mobility North Sea Region”

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