Environmental Regulation

Abstract

In coincidence with the second wave of regulatory reforms of electricity markets (the reform of the reform), during the past decade the concern for the environmental impacts of electricity-clearly led by climate change- has also become widespread and will require a very demanding environmental and energy policy, reducing emissions and at the same time supporting the massive deployment of clean energy technologies (renewables, capture and storage of CO2, nuclear or biofuels, plus measures of energy efficiency and savings). We have seen that, in particular, this will require an almost complete decarbonisation of the power sector, which, on the other hand, will have to feed with clean electricity much of the transportation and the heating sectors. The implications for electricity regulation are staggering, as environmental concerns have become as prominent as efficiency and security of supply: regulatory support of the several types of clean technologies, while they might need it; an in-depth review of the existing pricing and incentive instruments for electricity generation so that they are adapted to the new technology mixes that can be anticipated; demand response and how energy efficiency and conservation could be encouraged; rethink system operation and network planning at transmission and distribution levels; review of network remuneration schemes and design of instruments to promote innovation in new technologies. These challenges are reviewed in the final chapter of this book. © Springer-Verlag London Limited 2013.