Energy Networks and Regulation

The lecture “Energy Networks and Regulation” provides insights into the regulatory framework of electricity and gas. It touches upon the way the grids are operated and how regulation affects almost all grid activities. The lecture also addresses approaches of grid companies to cope with regulation on a managerial level. We analyze how the system influences managerial decisions and strategies such as investment or maintenance. Furthermore, we discuss how the system affects the operator’s abilities to deal with the massive challenges lying ahead (“Energiewende”, redispatch, European grid integration, electric vehicles etc.). Finally, we look at current developments and major upcoming challenges, e.g., the smart meter rollout. Covered topics include:

• Grid operation as a heterogeneous landscape: big vs. small, urban vs. rural, TSO vs. DSO.
• Objectives of regulation: Fair price calculation and high standard access conditions.
• The functioning of incentive regulation
• Amendment to the incentive regulation: its merits, its flaws
• The revenue cap and how it is adjusted according to certain exogenous factors
• Grid tariffs: How are they calculated, what is the underlying rationale, do we need a reform (and which)?
• Exogenous costs shifted (arbitrarily) into the grid, e.g. feed-in tariffs for renewable energy or decentralized supply.

The total workload for this course is approximately 135.0 hours. For further information see German version.

The assessment consists of a written exam (60 min) (according to §4(2), 1 of the examination regulation).