Digitalization in the Energy Systems

Framework and Issues

Technological advancements in the various areas of digitalization are rapidly affecting all aspects of the energy industry, expectedly to the benefit of consumers and the environment.  For these benefits to materialize, appropriate regulation will be necessary, even though it is not yet fully clear what the focus and the scope of this regulation will look like. In the context of the environmental challenge, the issue of digitalizing energy markets will become ever more important, as it is expected to foster energy efficiency and support the transition towards cleaner sources of energy.

The ERRA Digitalization Workshop, set to take place on October 24-25 in Istanbul, will discuss technological advancements and disruptions in the various areas of digitalization and the opportunities and the challenges these bring to the energy sector.  Organized jointly with WEC Turkey and IC4R (Istanbul Center for Regulation), the workshop will explore sector-specific and cross-sectoral regulatory policy options. Discussions will also include questions of cybersecurity, access to data, and privacy. Specific case studies, such as smart grids, will provide a direct insight into the practical applications of digitalization.


More information and registration here:

18th ERRA Energy Investment and Regulation Conference

It is scheduled to take place in Riga, Latvia on September 23-24, 2019.

The prestigious 18th ERRA Energy Investment and Regulation Conference will be held in Riga, Latvia in 2019.

This year’s event offers:

High-level presentations on the current status of the Baltic energy sector

Poster presentations of ERRA’s Regulatory Research Project

Networking opportunity with +100 regulators and regional industry players

 More information and registration here:

4th ERRA Training Course of Fundamentals of Water Utility Regulation

It is scheduled to take place in Budapest, Hungary on March 25-29, 2019.

Course Objective:

The course features 5 days dedicated to the core responsibilities and activities of water utility regulatory authorities with regard to the oversight of the regulated utilities, principles and practices of tariff setting, performance benchmarking, and new developments in the regulation of the sector.

Participants will gain knowledge on key economic concepts guiding the operation of the sector, the challenges faced by sector participants including the wider problems of water management, and the role of the regulator and regulatory models including best practices. A core theme of the course is tariff setting and approval by the regulator: theoretical lessons will be supplemented by case study examples and a tariff setting exercise. Sufficient time will also be dedicated to the role of performance benchmarking in regulation.

Design of the Course:

Instructors of the course are a mix of utility regulators and researchers. The course is designed to assure the utmost transfer of practices and information from experienced regulators to course participants. This characteristic allows ERRA to design training courses that focus equally on practical application and theoretical methodology and include the transfer of relevant direct experience. In addition to the formal classes presented by the instructors, the course will feature preparatory homeworks, practical exercises, simulations, participant case studies and a final test.

Target Audience:

The course is available to practising water utility regulators and to non-regulators such as ministry and local government representatives, banking institutions, law and investment firms, consulting companies and regulated utility companies.

More information and registration here:

1st ERRA Educational Workshop of the System Flexibility Challenge

It is scheduled to take place in Budapest, Hungary on March 11-12, 2019.

The increasing ratio of intermittent renewable capacities (solar and wind) on the national and regional markets creates new system-regulation challenges.  The need and the value of flexibility increases in the electricity system. The new generation portfolio and the renewable influenced commodity (energy) prices squeeze out flexible (gas fired) power plant units. In this present and foreseen situation system operators should mobilize all possible sources and actions in order to keep the system balance and to ensure system regulation.

The massively increasing number of electric vehicles (EV) create further challenges for distribution network operators (DSO) and for system operators (TSO). The new charging infrastructure needs massive network development and the charging behaviour of EVs could create system imbalances and congestion problems in the distribution system. On the other hand the EV batteries, as element of distributed storage system could assist the system-operation, if technical conditions and incentives available.

Regulators should take into consideration these tendencies, new challenges, possibilities and changing consumer expectations while creating new network tariff structure and the necessary incentives. The regulator could also facilitate new technologies and innovative solutions through enabling regulatory attitude.

Major issues to be discussed

  • system integration of intermittent renewable generators,
  • system regulatory challenges,
  • flexible generation,
  • balancing, balance circles, cross-border balancing,
  • demand forecasting, flexible demand response,
  • aggregation, storage technology for system regulation purposes and regulatory measures supporting flexibility

 More information and registration here:

ERRA’s 9th Training Course on Principles of Economic Regulation and Electricity Tariffs

ERRA’s 9th Training Course on Principles of Economic Regulation and Electricity Tariffs scheduled to take place

in Muscat, Oman on February 3-7, 2019

It is an opportunity to obtain a detailed insight into the allowed revenue calculation and electricity tariff-setting process. This important and technically complex role of regulators will be broken down in a step-by-step fashion, with a 5-day interactive training programme, to ensure trainees obtain a sound understanding of the fundamental objectives of price regulation, and the techniques regulators employ to achieve them.

The course will initially provide an overview of price regulation and examples of cases for regulatory intervention. This will be followed by discussions of wholesale market failures and international approaches towards wholesale price regulation and renewable energy pricing. Following a top-down approach, discussions will then focus on setting the revenue requirement, including detailed discussions on key regulatory input parameters such as WACC and methodologies for setting efficiency factors or loss targets. The course will then look into the process of allocating allowed revenues to cost and customer categories, and factors which regulators need to consider when designing network and retail tariffs. Finally, the course will be completed with an overview of targeted subsidy mechanisms which aim mitigate market distortions while protecting vulnerable customers.

The course is primarily designed for technical-level staff working in regulators or utilities but can also be suitable for policy-makers, commissioners and executives. As before, the roster of instructors will include world-renowned industry professionals and regulators, providing a diverse range of regulatory expertise and examples of international best practice.

We hope to see you in Muscat in February!

More information and registration here

Joint Training: Electricity Market Monitoring Tools

December 3-5, 2018

Istanbul, Turkey

The training program aims to discuss how to implement an explicit ex-ante regulatory measure to tackle and overcome the structural problems related to market monitoring. The objective of the work of regulators should therefore be to mitigate the market power of dominant players while, at the same time, affecting as little as possible  the right marginal signals that lead generators and system operators to maximize economic efficiency.

This three-day training is designed particularly for experts from regulatory authorities that are familiar with wholesale and retail markets monitoring in the electricity sector. On the first extensive day of the program, we will approach the fundamentals of competitive electricity markets, discuss market power in generation and transmission, accompanied by two case studies. On the second day, we will discuss the EU REMIT regulation and we will also look at the renewable energy markets and ancillary services. As a side event, the group will visit Enerjisa’s (one of the largest Turkish distribution companies) educational and vocational center. On the third and final day, we will discuss competition in retail markets and hear about the work of the East European Electricity Market Monitoring Project. During the course, participants will have the chance to interact through a group task and evaluate their learning progress.

More information and registration here

6th ERRA Training Course: Principles of Natural Gas Market Regulation

Nov. 12-16, 2018

Budapest, Hungary

The 6th edition of ERRA’s Natural Gas Training Course builds upon the previous similar training programs. It aims to give a general introduction into the gas value chain with special emphasis on upstream gas supplies. It is supposed to give a good understanding of the restructuring process of the gas industry and of wholesale markets. It puts special emphasis on regulators approaches of gas infrastructures, gas storage and security of supply issues.

More information and registration here