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C5-18 Market price signals and regulated frameworks for regional coordination of grid investments.

Large infrastructure investments on the transmission and distribution grids are needed in the coming years to integrate new assets to the network, such as distributed generation and large offshore wind farms, to accommodate, at least in developing countries, the quick growth of demand, and to reach for new opportunities provided by the implementation of new technologies, such as an enhanced Demand Side Management and Advanced Network Management. In this context, several coordination arrangements through market or regulated tools are required to efficiently allocate the limited financial resources under the frequent constraint of strong local acceptability issues. Various designs of short or long-term cost allocation are implemented worldwide or under consideration, through for instance central planning, locational signals and cross-border compensation mechanisms. The working group will conduct a survey to analyse advantages and drawbacks of main models and highlight the conditions and prerequisites for their success.