The Energy Efficiency Action Plan has set an indicative goal of reducing energy consumption by 20% by 2020. It suggests several initiatives to improve energy efficiency in the coming years. Network loss reduction in the power systems is one of these initiatives. This issue was discussed in the recent consultation paper “Treatment of Losses by Network Operators” published by the European Regulators Group for Electricity and Gas (ERGEG). ERGEG is currently developing a set of recommendations for establishing effective loss reduction incentives for the electricity network operators.
In the meanwhile, some figures to think about:
The engagement on energy efficiency is also a matter of electricity networks regulators. This report contributes to the energy efficiency objectives by bringing some light and economic analysis on the right regulatory signals to be implemented for efficient investments and energy loss reduction.
The structure of the remainder of this report is set out as follows:
Chapter 2: Overview of Regulatory Models This chapter takes a closer look at the regulatory models in Europe and describes their main characteristics. This chapter serves as an initial step in preparing the discussion on incentives for efficient investments.
Chapter 3: Analysis of Regulatory Schemes in Selected Countries This chapter contains a detailed description of the regulatory regimes in five selected countries namely Great Britain, Germany, the Netherlands, Norway and Spain, in order to demonstrate how the regulatory models are implemented in practice.
Chapter 4: Analysing Incentives for Efficient Investments Whereas the two previous chapters provide an examination of theoretical developments and applications of regulatory models in practice, this chapter focuses on how regulation provides incentives to encourage efficient investments and loss reduction programmes.
Chapter 5: Case Study on Distribution Losses The chapter provides a summary of the ERGEG’s report on the regulatory incentives for loss reduction. In addition, some examples for cost benefits analysis are provided, supporting the decision to invest in an energy-efficient distribution transformer. A case study is provided for Spain.
Chapter 6: Conclusions and Recommendations This chapter summarises the project findings and provides recommendations for potential improvements.Log in to post comments