Since the publication of the ENTSO-E position paper “European Electricity Transmission Grids and the Energy Transition: Why remuneration frameworks need to evolve” in 2021, there have been changes in context with recent global events, including the Covid-19 pandemic and the Russian invasion of Ukraine, which have increased energy costs and disrupted supply chains as well as skilled labor availabilities. Despite supply chain issues and labor shortages, TSO investments have accelerated and increased intensively.
The latest available paper presents the evolution by addressing the changing context of TSOs financial challenges and regulatory frameworks in a more detailed and urgent manner. Building on the 2021 paper, which outlines general challenges and regulatory shortcomings, the recent paper delves deeper into specific financial needs, emphasizing the necessity for stable yet adaptive regulatory frameworks. The 2021 paper proposed recommendations on key criteria, scope, and candidates for effective incentive regulation, which were incorporated into the 2024 paper’s proposal of various incentives for TSOs. Additionally, the new paper offers more detailed and numerous regulatory best practice examples for the interested reader.
Please find the full position paper here.