Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/103339 
Year of Publication: 
2011
Series/Report no.: 
Bremen Energy Working Papers No. 05
Publisher: 
Jacobs University Bremen, Bremer Energie Institut, Bremen
Abstract: 
Most transmission systems in Europe are currently in need of large network expansions, in particular to cope with increasing shares of load remote renewable energy sources. Given that the scope for further cost reductions is largely exhausted, we observe a paradigm shift into the direction of implementing more cost-pass-through elements into price-based regulation to strengthen the necessary investment incentives. Regulatory emphasis is shifting from costreductions to promoting investment. Obstacles to investments arise in particular from regulatory risk and efficiency risk. Addressing these topics, we recommend a move towards more cost-based approaches, with ex-ante investment approval and less reliance on ex-post benchmarking.
Subjects: 
regulation
regulatory risk
network investments
Document Type: 
Working Paper

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