“Develop recommendations for a regulatory framework that incentivizes the huge investments and innovations required to accommodate the transition to the new energy mix”"
The cost of electricity has a direct impact on the cost of living for residential customers and the competitiveness of commercial and industrial customers. The renewable development still requires large investments in a number of countries with an impact on energy prices and raise further concerns regarding the sustainability of tariffs for consumers.
The technology now exists, and is progressively being deployed, to allow customers to respond to pricing signals and be active in identifying the services they value. The decreasing prices of embedded generation (especially Solar PV) and batteries bring the micro-grid case closer to breakeven.
At the same time, the reliability and resilience of the electricity remains vital. Failure to maintain appropriate power quality and reliability to customers has a direct impact on customers, residential and industrial, on the economy and the security of a range of urban infrastructure.
The role of power grids, and the way we develop them, will have to change to meet the changing needs of consumers while maintaining reliable and secure supply. Adapting to changing needs and integrating ICT (Information and Communications Technology) to networks will require significant investment and a regulatory regime that appropriately rewards efficiency and innovation.
The goal of Committee 3 is to share Grids Operators knowledge of electricity market mechanisms and power systems abilities to bring value in the development of the Power Grid of the Future and the regulatory framework required to drive its implementation and ensure its commercial viability. Hence there is a need for change in the associated regulatory arrangements that not only allow grid owners and operators to recover their efficient costs but also to encourage innovation and new solutions and actors.
As energy market customers gain the ability to respond to the prices they see, it is critical that those prices and price structures accurately reflect the costs of the actual services customers need. Efficient pricing, both of energy and network services, will be important to the delivery of overall outcomes. The experience of GO15 members in operating energy markets and the management and/or provision of network services provides the opportunity to learn and identify best practice.
Committee 3 works actively with other organizations such as ICER or Energy Charter.