The regulatory landscape and investment planning for transmission in the EU

Paul Nillesen, Otto Jager and Joost Ornée

Chapter Chapter 8 in Handbook on Electricity Regulation, 2025, pp 181-199 from Edward Elgar Publishing

Abstract: As the energy transition progresses, TSOs are expected to expand their role due to the shift from fossil fuels to renewable sources. TSOs have three main functions: transmission operators, system operators, and market facilitators. They are responsible for building and maintaining the transmission grid, planning and operating the system, and promoting fair electricity market functions. TSOs are organized along national boundaries and regulated at a national level within a European framework. Regulatory frameworks are essential for the expansion and operation of complex electricity grids to support the energy transition. Efforts to increase cross-border capacity are crucial in facilitating the energy transition. State ownership of TSOs is common, driven by the strategic importance and capital requirements of transmission infrastructure. Renewable energy expansion and the phase-out of thermal power generation have greatly impacted the European transmission landscape. The goal of achieving net-zero carbon emissions by 2050 has further accelerated these trends.

Keywords: Transmission; Regulation; Europe; Energy Transition; Investment (search for similar items in EconPapers)
Date: 2025
ISBN: 9781035314348
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