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PÖYRY POINT OF VIEW REPORT / 20 Oct 2015

Building the modern electricity network: regulation and innovation

European Electricity Regulators and Policymakers need to recognise that the electricity market value chain paradigm that underpins much of their policies and philosophy is no longer fit for purpose. At best inaction is causing inefficiencies – at worst, it is stifling the deployment of potentially innovative technologies and business models.

In this latest Point of View report, Pöyry explores the electricity market design of the 21st century and explains what Regulators and Policymakers need to change so that it can take the first steps towards delivering a strong, efficient low-carbon system.

Deployment of renewables and other small‑scale generation at transmission and distribution levels, the growing use of small storage technologies, and demand‑side engagement all blur the different “sectors” interfaces – and networks’ role is being increasingly drawn into debates long faced by generators and suppliers.

Overcoming these artificial divisions and moving beyond asset-based solutions enable Regulators and Policymakers’ – and Transmission and Distribution System Operators (TSOs and DSOs) – to unlock the value of this new system.  They need to take the first experimental steps now to deliver a strong, efficient low‑carbon system in the coming years.

Read the full report