Energy Sector Digitalisation, Green Transition and Regulatory Trade-offs

Manuel Llorca, Golnoush Soroush, Emanuele Giovannetti, Tooraj Jamasb*, Daniel Davi-Arderius

*Corresponding author af dette arbejde

Publikation: Working paperForskning

153 Downloads (Pure)

Abstract

The green transition relies on electricity generation from intermittent renewable energy sources and the electrification of end-consumption such as heating, cooling, or mobility. At the same time, an increasing number of previously passive consumers are becoming active actors in the energy system, while the quantity of electric devices connected to the grid increases. These trends pose new operational, economic, and regulatory questions as the traditional roles of certain agents are mutating and multiplying. Digitalisation offers the possibility of implementing innovative solutions to the new challenges faced by grid operators, especially at the distribution grid level. In the EU Grid Action Plan, investments in grid digitalisation and real-time monitoring are deemed as crucial to achieve an efficient and fast energy transition. In this paper we present potential digital solutions to overcome the operational challenges posed by the ‘future-proof’ energy systems currently being devised and we address their economic implications. We also address some key aspects related to the digitalisation of the energy sector (efficiency and innovation, interoperability and standardisation, centralised vs decentralised solutions) from an economic perspective. Finally, a successful digitalisation of the sector requires adjustments in the regulatory frameworks. In the conclusion, we detail some recommendations needed for regulatory improvements.
OriginalsprogEngelsk
UdgivelsesstedFrederiksberg
UdgiverCopenhagen Business School, CBS
Antal sider29
StatusUdgivet - 2024
NavnWorking Paper / Department of Economics. Copenhagen Business School
Nummer05-2024
NavnCSEI Working Paper
Nummer03-2024

Emneord

  • Energy transition
  • Digitalisation
  • Standardisation and interoperability
  • Economic principles
  • Innovation
  • Regulation

Citationsformater