The Relevance of Unbundling for Large-Scale Res-E Grid Integration in Europe

Hans Auer
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Hans Auer: Assistant Professor Energy Economics Group (EEG), Vienna University of Technology, Gusshausstrasse 25-29/373-2 1040 Wien, Austria

Energy & Environment, 2006, vol. 17, issue 6, 907-928

Abstract: Market integration of RES-E generation technologies is one of the core topics in the energy policy agenda of the European Commission (EC). However, legislation in this context still faces a variety of shortcomings (e.g. ignoring basic unbundling principles) in almost all Member States of the European Union (EU). Therefore, the major objective of this paper is to comprehensively discuss several dimensions of correct unbundling in the context of large-scale RES-E grid integration. Moreover, currently existing demarcation lines between the RES-E power plant, the grid infrastructure and overall system operation are questioned. It is also shown that there exist partly conflicting interests in cost remuneration of different disaggregated cost elements (grid connection costs, grid reinforcement/upgrading costs, extra system operation costs) for different market actors (RES-E developer, grid operator, system operator). It is concluded that only a convergence of different ongoing policies (RES-E promotion policy and grid regulation policy) guarantees the fulfilment of the ambitious goals of the EC on large-scale RES-E grid integration with minimal costs for society.

Keywords: RES-E grid integration; Unbundling; Cost allocation; Grid regulation policy; Europe (search for similar items in EconPapers)
Date: 2006
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Persistent link: https://EconPapers.repec.org/RePEc:sae:engenv:v:17:y:2006:i:6:p:907-928

DOI: 10.1260/095830506779398858

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