What does the energy transition mean for policy makers?

While the energy transition is inevitable, its cost is not. According to BloombergNEF (BNEF), the transition will be faster and less costly if flexible technologies and energy markets become the cornerstone of the grid. This is because wind and solar power both add to variability in supply, while mass EV charging will add greatly to variability in demand. To avoid the need for costly grid upgrades and back-up generation, the system must become more flexible to smooth the resulting peaks and troughs in supply and demand.

The series of articles below explores the current regulatory barriers to a more flexible electricity system and the steps needed to ease the transition to a low-carbon economy. Today’s grid regulation in most European countries is designed for a centralised electricity generation model. The articles describe how regulators, policy makers and industry are responding to the challenges this poses for the energy transition. The articles also include recommendations on the regulatory and market design changes needed to unlock private investment in the technologies required for a more flexible energy system.

The primary focus of the articles are the UK and German markets, with additional case studies and commentary from several other north European markets including Norway, the Netherlands and France.

The final article concludes with a summary of our core regulatory recommendations that, if addressed, will help unlock private investment in technologies already available to develop the flexibility needed to ease the transition to a high-renewable and clean-energy future.

The articles were initiated and developed by Eaton and the Renewable Energy Association (REA) with cross-industry contributions including market data, insights and case studies.