From distribution networks to smart distribution systems: Rethinking the regulation of European electricity DSOs |
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| Affiliation: | 1. Florence School of Regulation, European University Institute, Italy;2. German Institute for Economic Research, Berlin, Germany;3. Comillas Pontifical University, Madrid, Spain;4. MIT, Boston, USA;1. Energy for Sustainability Initiative, MIT Portugal Program, Faculty of Sciences and Technology, University of Coimbra, Rua Luís Reis dos Santos, Pólo II, 3030-788 Coimbra, Portugal;2. CeBER, Centre for Business and Economics Research, Faculty of Economics, University of Coimbra, Av. Dias da Silva, 165, 3004-512 Coimbra, Portugal;3. INESC Coimbra, Institute for Systems Engineering and Computers at Coimbra, Rua Sílvio Lima, Pólo II, 3030-290 Coimbra, Portugal;4. Institute for Future Energy Consumer Needs and Behavior (FCN), School of Business and Economics/E.ON Energy Research Center, RWTH Aachen University, Mathieustraße 10, 52074 Aachen, Germany;1. Florence School of Regulation, Robert Schuman Centre for Advanced Studies, European University Institute, Via Boccaccio 121, 50133, Florence, Italy;2. Vlerick Business School, Vlerick Energy Centre, Bolwerklaan 21, 1210, Brussels, Belgium;3. Mines ParisTech, 60 Boulevard Saint-Michel, 75272, Paris, France |
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| Abstract: | Distributed energy resources allow for new business models that have the potential to substantially change today's power system functioning paradigm. In particular, these changes pose challenges for distribution system operators (DSOs) and their regulation alike. This article sheds light on missing aspects in current regulation, recognizing DSOs as regulated monopolies, but also as key players along the supply chain. We provide insights on how regulation should be adjusted so that DSOs are incentivized to facilitate the market entry of welfare-enhancing technologies in a timely fashion, and to manage the distribution system efficiently in the presence of distributed energy resources. |
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| Keywords: | Electricity distribution Smart grid Regulation Distribution system operator |
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