Article Post on 16 September 2019

Wildgen's Contribution to the EU Commission Report on Current Energy Regulatory Frameworks

_Wildgen's Energy Team announces its contribution to the Luxembourg chapter of the EU Commission Report "Do current regulatory frameworks in the EU support innovation and security of supply in electricity and gas infrastructure?"

The European Transmission System operators (TSOs) for electricity and gas play a central role in the energy system. Investments in transmission networks by TSOs are crucial for the integration of the European electricity and gas markets and the integration of a growing share of renewables.

Transmission networks can also facilitate the integration of storage and Power-to-X technologies in the market. The incentives for TSOs to invest are highly dependent on the National Regulatory Framework (NRF) in Member States. Traditionally, the regulation of natural monopolies such as TSOs puts a strong emphasis on the (short-term) efficiency of the network. Is this emphasis on efficiency conducive to long-term investments? Do the NRFs contribute to socially valuable investments and do they enable TSOs in meeting future challenges?

The main objective of this study was to assess how the existing regulatory framework supports and incentivises energy infrastructure investments, with a specific focus on innovative and security of supply investments.

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