ERRA gathers regulators from nuclear and nuclear newcomer countries, creating a suitable platform to exchange views and experiences within our organization. That is why the ERRA Presidium decided to launch the first of this kind of conference focusing on the intersection of nuclear energy and energy regulation in a format that gathers international organizations, TSOs, policymakers, and NRAs. The ERRA Nuclear Energy Regulatory Forum (NERF), which was held in Warsaw on June 6-7, 2024, turned out to be a success: gathering experts from 17 countries has been an excellent basis for developing a new block within our activities.

As a product of Warsaw NERF, we want to share the main discussions and findings of the event, hoping to raise a discussion on all regulatory aspects related to nuclear power. The first part of our post-conference materials was prepared by eminent TSO experts who debated nuclear power from the point of view of a smooth-functioning energy system. 

This CEER Report aims to provide some insight into how high market prices affected supported RES in Europe. It seeks to determine whether there was the option for supported RES to leave any given support system, outline the structure of those support systems, and assess whether supported installations that left the support system during the high market price phase had the option to re-join the system later on. The paper also seeks to determine whether rules for renewable energy communities were already in place in 2022 and whether high market prices led to the support systems being adapted or changed.

Meeting European climate goals will require a stark contraction in fossil gas use. Despite the substantial implications for gas grid users and infrastructure, current grid planning in most EU Member States does not adequately reflect this new reality. This misalignment poses a substantial barrier to the transition towards a sustainable energy system and underscores the need for more holistic planning. This study provides comprehensive information on the current state of the gas grid, its development, and the regulatory framework in selected European countries, and identifies current regulatory barriers for the phase-out of fossil gas. It concludes with recommendations on how Member States could better align energy infrastructure planning with the attainment of national and EU climate targets.

Paper was jointly developed by the Regulatory Assistance Project (RAP) and Oeko-Institut.

Grid scarcity in countries characterized by a high phase of renewable energy integration is one of the key barriers for their successful energy transition. As the issue becomes more apparent also among ERRA member countries, the Association issues the Study on how grid scarcity is perceived among ERRA regulators and how the issue can be tackled with the right tools. The Study was developed by the Regulatory Assistance Project.

The contents of the report comprise: 

• ERRA survey results for 11 member countries;
• RAP's toolkit on tackling power grid scarcity with 3 time horizons;
• Case studies on: - cable pooling in Poland,  - grid transparency in Belgium, - competitive renewable energy zones in Texas.
• Recommendations for policymakers and regulators

We kindly acknowledge the RAP team developing the report as well as the ERRA member organizations that contributed to the ERRA survey.

To stay competitive and decarbonise, the EU needs a robust electrification strategy. Currently, only a third of energy consumed by European industries is electrified, and high-emission processes remain largely dependent on fossil fuels. Addressing these challenges can unlock significant potential for industries to leverage clean electricity.

Key findings:

• 75% of EU electricity in 2024 came from clean energy.
• Industrial electricity demand is falling, slowing down the transition.
• Negative electricity prices and price volatility pose risks to future clean generation energy investments though opening up opportunities for storage and flexibility.

This report highlights the transformative potential of hydrogen and the crucial role of GOs in fostering a transparent, credible, and efficient hydrogen market. Hydrogen can significantly contribute to global sustainability and energy security goals through strategic investments and collaborative efforts.

The report identifies four critical attributes of GOs: traceability, ensuring that hydrogen's origin and production details are accurately tracked; tradability, allowing GOs to be bought and sold independently of the physical hydrogen; transparency, providing clear information about hydrogen's environmental credentials; and credibility, maintaining rigorous standards and independent verification.

The report is structured as follows:

• Chapter 1 - Hydrogen: A Visionary Energy Solution for Tomorrow
• Chapter 2 - Production of Hydrogen
• Chapter 3 - "Dirty" vs. "Clean" Hydrogen
• Chapter 4 - The Logistics of Hydrogen
• Chapter 5 - Understanding Certification for Hydrogen
• Chapter 6 - Critical Attributes of Guarantees of Origin

This report would not have been possible without the invaluable contributions of the ERRA Gaseous Fuels Markets and Economic Regulation Committee (GF COM) member NRAs.

The Council of European Energy Regulators (CEER) released its new report Beyond the Crisis: Consumer Protection and Market Measures for Better Functioning Markets. The report examines the measures implemented across Europe to address the challenges posed by the recent energy crisis and reflects on the lessons learned to create more consumer-centric energy markets.

In the report, CEER identifies seven critical issues that emerged and draws 14 recommendations to enhance consumer protection and engagement. A series of case studies illustrate the diverse approaches taken by different countries, underscoring the importance of tailoring solutions to national contexts and specificities.

This study was developed by Sustainable Energy for All (SEforALL) as part of a technical assistance programme supporting the Sierra Leone Electricity & Water Regulatory Commission (SLEWRC). It aims to:

• Collect relevant CAPEX and OPEX data from mini-grid developers in Burkina Faso, Nigeria and Sierra Leone to enhance benchmark credibility.
• Analyze the data to create a comprehensive CAPEX and OPEX benchmark specific to the mini-grid industry in West Africa, enabling informed decisions and effective regulatory frameworks.
• Compile key findings into a detailed report as the basis of a training session for regulators, empowering informed decision-making and facilitating strategic initiatives for sustainable mini-grid development in Sierra Leone.
• Contextualize the findings to understand policy drivers and macroeconomic influences in Burkina Faso, Nigeria and Sierra Leone.

The success of the energy transition hinges on strong electric utilities. A new World Bank report, "The Critical Link: Empowering Utilities for the Energy Transition," highlights the crucial role utilities play in achieving the dual goals of the clean energy transition: decarbonizing electricity supply and demand while providing electricity to the nearly 700 million people who still lack it. Using new data, this concise yet comprehensive report examines the performance of over 180 electric utilities in more than 90 countries. It provides critical insights into utility performance in the developing world, identifies new challenges—and opportunities—brought about by the clean energy transition, and charts a way forward for utilities to fulfill their mandate of delivering affordable and reliable electricity supply to all. ERRA contributed to the report with data research.

The views presented in this paper are circulated with CERC's staff with the aim of initiating discussions on various aspects of market coupling in the Indian power market and soliciting inputs from the stakeholders. 

Some of the key insights of the paper:

• Market Coupling matches bids from all Power Exchanges to find uniform MCP, considering bid types and market splitting and there by promoting competition
• Objective in India’s context is to achieve discovery of a uniform MCP, optimal use of transmission infrastructure & maximization of economic surplus. stakeholders submitted suggestions
• Regard to recommendations of the expert committee and the provisions in PMR 2021, CERC issued a Staff (Discussion) Paper. 127 stakeholders submitted suggestions
• Commission conducted simulations using stakeholder feedback and Bid data to assess market coupling benefits.
• Ordinance for running shadow pilot is passed.

The Association of Southeast Asian Nations (ASEAN) is at a pivotal point in its collective energy future. This report outlines energy transition pathways that focus on renewables, end-use electrification, energy efficiency and emerging technologies, such as hydrogen. The main focus of this report is the 1.5°C Scenario (1.5-S), an energy pathway for ASEAN that is aligned with IRENA’s global 1.5-degree pathway from the World Energy Transitions Outlook.

Some of key insights of the report: 

• Renewable energy share of the region
• Key transition technologies
• Power system integration
• Transmission and distribution grids
• Investments
• Energy efficiency measures
• Bioenergy
• Clean hydrogen and its derivatives

Power transmission is the large-scale movement of electricity at high voltage levels from a power plant to a substation. Whereas, power distribution converts high-voltage electricity at substations to lower voltages that can be distributed and used by private, public, and industrial customers.

The Southeast Asia power transmission and distribution market is segmented by type and geography. By type, the market is segmented into transmission and distribution. The report also covers the market size and forecasts for the power transmission and distribution market across major countries in the Southeast Asian region. For each segment, the market sizing and forecasts have been done based on revenue (USD Billion). 

In this technical document, NGFS addresses the challenges around the EMDEs and tries to contribute to the global collaborative effort to scale up blended finance for climate mitigation and adaptation in EMDEs by providing several policy recommendations coupled around five key areas:

• Prerequisites to improve EMDE climate investability
• A holistic approach to developing blended finance
• Development of project pipelines and scalable structures
• Risk mitigation and regulatory considerations
• Financial and information intermediation

Interconnection is one of the biggest obstacles to the expansion of distributed energy resources (DERs) such as rooftop solar installations, community solar, and battery storage and achieving state clean energy, climate, and just transition goals. As demand for clean energy accelerates, utilities face a glut of requests to connect DER projects to an already saturated electric grid. Without up-to-date rules tailored to current clean energy technologies and the latest best practices for integrating them on the grid, it can take months or years to bring new projects online. 

The 2023 Model Procedures include the following important updates, among other changes:

• Interconnection of Energy Storage Systems
• Use of 100% of Minimum Load in Fast Track Screen
• Elimination of Level 3 and Renaming of Study Track
• Supplemental Review Screens
• General Usability Updates

IREC’s 2023 Model Procedures provide guidance and best practices on the following important issues and related questions impacting the interconnection of DERs to the grid.

Report provides the 2024 installed capacity of the power stations in the following regions of India: 

• Northern Region 
• Western Region 
• Southern Region 
• Eastern Region 
• North Eastern Region
• Islands 

According to the Central Electricity Authority (CEA) of India for enabling growth of Renewable Energy (RE) capacity, areas which have high solar and wind energy potential, needs to be connected to Inter-State Transmission System (ISTS), so that the power generated could be evacuated to the load centres.

The Report portrays the broad transmission system roadmap for reliable integration of 537 GW RE capacity by the year 2030 for major RE potential zones like Leh RE park in Ladakh; Fatehgarh, Bhadla, Bikaner in Rajasthan; Khavda RE park in Gujarat; Anantapur, Kurnool RE Zones in Andhra Pradesh; and offshore wind farms in Tamil Nadu and Gujarat etc.

The ASEAN Interconnector Study conducted by DNV delves into the critical aspects of decarbonization within the member states of the Association of South East Asian Nations (ASEAN). This comprehensive research explores how collaborative efforts across South East Asian countries can significantly reduce costs and accelerate the transition to cleaner energy sources.

Key insights:

• Cost reduction potential: By embracing a unified regional strategy, ASEAN countries have the opportunity to slash a staggering USD 800 billion from their decarbonization expenses. This approach involves cross-border power interconnectors, hydrogen networks, and energy storage infrastructure
• Net-zero emissions vision: The aspiration to achieve net-zero carbon emissions by 2050 is widely shared among ASEAN member states. However, most decarbonization efforts have so far been confined to individual nations.
• ASEAN power grid: The establishment of an ASEAN power grid aims to meet the region’s energy needs while enhancing energy security. It can facilitate the transport of clean energy from surplus countries to those facing shortages.

The conclusions of the 9th Energy Infrastructure Forum requested ACER and CEER to analyse key barriers and develop recommendations for national incentive schemes to promote anticipatory investment for the system integration of renewables.

This Regulatory Energy Transition Accelerator (RETA) flagship project aims to gather the insights derived from regulators’ experiences in elevating the priority of decarbonization in regulatory decision making.

The chapters of this report cover the rationale for acceleration of the clean energy transition, highlights of the interviews and an in-depth look at certain examples, findings and recommendations.

The report has recommendations for policymakers, regulators and RETA to support the elevation of decarbonization in regulatory decision making.

In 2022-2023, OGCI extended its flagship Satellite Monitoring Campaign (SMC) to Algeria, Kazakhstan and Egypt to support more countries taking practical action to reduce methane emissions from oil and gas operations.

A successful pilot of the SMC in Iraq in 2021 had already demonstrated the capability of satellite technology to detect and quantify methane emissions and provide information to local operators to help them reduce emissions. Detection and measurement of methane emissions is a critically important first step to reducing methane emissions.

For this latest phase of the campaign, greenhouse gas monitoring company GHGSat performed over 530 high-resolution observations during one year over a total of 18 pre-selected sites (six per country), using its own satellites and public satellite data

The Oil and Gas Climate Initiative (OGCI) launched a Satellite Monitoring Campaign in 2021 to take practical action to help reduce methane emissions from oil and gas operations, demonstrate the capability of satellite technology to detect and quantify methane in Iraq and provide information to local operations to help them reduce emissions.

For this program, GHGSat performed over 175 high-resolution observations over six selected sites during a nine-month period, using its own satellites and public satellite data. Sites were selected on the likelihood of having facilities with observable methane emissions based on existing evidence of methane plumes, flaring volumes, age of infrastructure, size of the field and production volumes.

The Campaign demonstrated that there are challenges and opportunities associated with using satellite data and engaging with local operators to support mitigation of methane emissions.

Grids for Speed (GfS) is a comprehensive examination of investments and enablers needed to ensure that our grids are fit and ready for a more electrified society. The report also explores the societal benefits that will be made possible by investment, including energy bill savings, job creation opportunities and, crucially, decarbonization. In detailing investment needs, identifying appropriate regulations, formulating a supply chain action plan and addressing societal dividends, this report becomes a valuable roadmap toward the energy transition.

Some of the contents are as follows: 

• The need for GfS in the energy transition
• Revamping distribution grids for the energy transition
• Grid investment strategies enabling the energy transition
• GfS modelling methodology
• Grid investment pathways to 2050
• Societal benefits of GfS
• Regulation to enable grids for speed
• Scaling and innovating the supply chain

Energy investment is crucial for countries to achieve national and global goals, particularly in supporting the global energy transition and climate agenda. Appropriate regulations, incentives and policies are required to support it.

This report provides an overview of the approach of EMER members to regulating energy investment. It is based on a survey of 12 member countries that responded to a series of questions considering how regulators assess, treat, approve, evaluate, plan and monitor energy investment. The survey compares the various regulatory tools used to support and stimulate investment. The responses indicate similarities between countries in the different areas of regulation. In 10 out of 12 member countries, there are no overlapping regulatory or policy requirements. Energy investments are regulated by the license in many of the countries.

The report is structured as follows:

• Chapter 1 - Approvals and Evaluations in Energy Investment Projects
• Chapter 2 - Overlap Regulatory, Policy & Approval
• Chapter 3 - Regulation of Investments in Energy Generation
• Chapter 4 - Incentives to Attract Investments in Energy Generation
• Chapter 5 - Treatment and Planning
• Chapter 6 - Approval of Investment Projects and Development Plans
• Chapter 7 - Investment Monitoring

This benchmarking initiative would not have been possible without the invaluable contributions of the participating ERRA Electricity Markets and Economic Regulation Committee member NRAs.

Keynote Address by Dr. Sohbet Karbuz, Director of Natural Resources and Energy Security Division, Mediterranean Organisation for Energy and Climate (OMEC), for the ERRA Natural Gas Market Regulation Course Introductory Session on April 9, 2024.

This report by the International Energy Agency overviews how nuclear energy could help address two major crises – energy and climate – facing the world today. 

It examines the difficulties facing nuclear investment, particularly in advanced economies, in the areas of cost, performance, safety and waste management. The report considers the additional challenge of meeting net zero targets with less nuclear power than envisioned in the IEA Net Zero Roadmap, as well as what kind of cost targets could enable nuclear power to play a larger role in energy transitions.

Some of the contents are as follows: 

• Nuclear power in the world today
• The role of nuclear energy on the road to net zero emissions
• The competitiveness of nuclear energy
• Small modular reactors

This paper analyses the impact of this framework on the existing natural gas networks and the emerging hydrogen network and seeks to establish specifically whether its rules ensure flexibility and security of supply. 

Some of the contents are as follows: 

• The EU vision for the future European gas system, consisting of natural gas and hydrogen systems, and legislative provisions governing its operation
• Topology, scale and timing of the European hydrogen network development and its impact on the existing natural gas networks
• Decarbonisation of the European natural gas networks: EU legislative provisions on network development coordination and financing

The paper concludes that although regulatory flexibility is built into the framework by establishing a transition implementation period, allowing exemptions and derogations for existing and new hydrogen infrastructure, and enabling financial and regulatory support via a PCI/PMI status, it is far from certain to be sufficient to enable the EU hydrogen market to develop at scale. 

In his work, Mr. Dominic Scott the Senior Advisor and Consultant of RAP discusses the sustainability of investments in renewable energy because. He explains the price cannibalization and outlines several factors for it such as the falling costs of solar and wind technologies, the role of carbon pricing and the need for flexible technologies to manage fluctuations in renewable energy supply.

In this work, the authors present the major application and impact areas of Contracts-for-Difference (CfDs) in a European context, describe the most relevant design dimensions and discuss several design packages for CfDs as combinations of distinct design choices. They are discussed separately and in comparison. 

The paper provides a detailed overview of CfD schemes implemented in Europe. This work comes against the backdrop of an ongoing European debate on reforming the electricity market and the broader introduction of CfDs. 

By its Climate Protection Act Germany is committed to net zero GHG emissions by 2045, implying zero emissions from space heating, a major part of final energy consumption.

According to paper the present political discussion reflected in recent legislation is dominated by use of heat pumps and renewable power. This approach risks to fail due to too slow renewable roll out, bottlenecks in power infrastructure and lack of storage solutions to cover the strong seasonality of heating demand, from today’s 9.5 million gas heated and 6 million oil heated buildings. Replacing oil heating of 5 million buildings on the countryside by heat pumps has little alternative.

This paper illustrates that including district heating and switching from natural gas to green and blue hydrogen for about 5 million buildings each in urban areas, offers a realistic way to a zero CO2 heating sector by 2045. It suggests early actions needed to foster each of the three avenues and above all a paradigm change accepting that renewable energy supply and heat pumps have to be complemented by fossil fuels with CCS to achieve reliable and CO2 free heating by 2045.

This report provides a general overview of the regulatory regimes applied in 2023 and the required efficiency developments. It also analyses the overall determination of capital costs of CEER members plus Northern Ireland and five Energy Community Regulatory Board (ECRB) members, four of whom are also CEER observers.

A major focus is placed on the calculation of an adequate rate of return (RoR), the determination of the regulatory asset base (RAB) and the depreciation of assets in the different regulatory regimes.

Other important individual parameters and new incentive mechanisms presented in this study should be interpreted in the context of a whole country-specific regulatory regime. Some contents only reflect an ex-ante approach for 2023, while ex-post calculations are yet to be performed.

Presentation by Mr. Gatis Junghāns, Board Member of AS Augstsprieguma tīkls (AST) in Latvia was given as a part of ERRA’s Joint Electricity Markets and Economic Regulation (EMER COM) & Renewable Energy (RE COM) Committee Meeting held in Bratislava, Slovakia on March 7, 2024.

Presentation by Mr. Zoltán Pataki, Director of Regulatory & Stakeholder Affairs at E.ON Hungary was given as a part of ERRA’s Joint Electricity Markets and Economic Regulation (EMER COM) & Renewable Energy (RE COM) Committee Meeting held in Bratislava, Slovakia on March 7, 2024.

Presentation by Mr. Karolis Kiguolis, Founder & CEO of Linea Ignis in Lithuania was given as a part of ERRA’s Joint Electricity Markets and Economic Regulation (EMER COM) & Renewable Energy (RE COM) Committee Meeting held in Bratislava, Slovakia on March 7, 2024.

Presentation by Ms. Zsuzsanna Pato, Senior Advisor & Consultant at Regulatory Assistance Project (RAP) was given as a part of ERRA’s Joint Electricity Markets and Economic Regulation (EMER COM) & Renewable Energy (RE COM) Committee Meeting held in Bratislava, Slovakia on March 7, 2024.

DNV’s annual Energy Transition Outlook presents the results from their independent model of the world’s energy system. It covers the period through to 2050 and forecasts the energy mix, supply and demand globally and in 10 world regions: North America (NAM),  Latin America (LAM), Europe (EUR), North East Eurasia (NEE),  South East Asia (SEA), Sub-Saharan Africa (SSA), Middle East, North Africa (MEA), Greater China (CHN), Indian Subcontinent (IND) and OECD Pacific (OPA).

Some of the important topics report contains are as follows: 

• • Energy Demand
  • Electricity and hydrogen
  • Renewable and nuclear energy 
  • Fossil fuel
  • Financing the energy transition
  • Policy and climate implications 

In 2021, nuclear energy accounted for approximately 20 percent of total U.S. electric generation and almost 50 percent of its carbon-free electricity. Over the decades of operation, nuclear energy has proven to be one of the lowest-cost and most reliable energy resources integrated into the U.S. electric grid. To achieve ambitious decarbonization goals, retaining the existing and expanding the new nuclear energy resource base will be of critical importance. 

Read more in this report authored by Phillip Graeter and Deeksha Anand of Energy Ventures Analysis and developed by the National Association of Regulatory Utility Commissioners (NARUC) Center for Partnerships and Innovation. 

Some of the chapters from the report: 

• Current Treatment of Nuclear Energy in Federal and State Clean Energy Standards
• Background on Current and Future Nuclear Energy Technology
• Integrated Nuclear Energy Systems and their Potential Relevance to Meet Net-Zero Carbon Goals
• The Role of Public Utility Commissions in Facilitating the Retention and Advancement of Low-Cost and Reliable Nuclear Energy

This report - authored by Kathryn Kline, Sam Stephens, and Kiera Zitelman - was developed under the project: “U.S. Department of Energy (DOE)-NARUC Nuclear Energy Partnership,” an initiative of the National Association of Regulatory Utility Commissioners (NARUC) Center for Partnerships and Innovation. It overviews IRPs and existing and advanced nuclear generation. The authors also review the inclusions of advanced nuclear in selected recently filed IRPs and offer questions and considerations for public utility regulators.

The report contains: 

• Overview of Integrated Resource Planning Processes
• Overview of Advanced Nuclear Technologies
• Advanced Nuclear in Integrated Resource Planning

• Infrastructure and demand characteristics,
• Regulatory framework,
• Incentives to achieve security of supply.

The report is structured as follows:

• Chapter 1 - Pillars of Security of Supply
• Chapter 2 - Challenges Faces by the EU in terms of Security of Supply 
• Chapter 3 - Regulatory Framework for Security of Supply on the EU Level
• Chapter 4 - Sample Cases of Gas Supply Security
• Chapter 5 - Comparative Analysis of Gas Supply Security across Different Countries – Cross-Continental Survey

This benchmarking initiative would not have been possible without the invaluable contributions of the participating ERRA Natural Gas Markets and Economic Regulation Committee member NRAs.

This report analyses the energy transition efforts of several developed non-ERRA countries. It extracts key lessons, best practices and innovative approaches for others to follow for a sustainable energy future. The report explores indicators such as renewable energy generation, energy efficiency measures, carbon emissions reduction, and the policy and regulatory frameworks that help successful energy transitions. Through unique examples and comparative analysis, the report aims to provide valuable insights for ERRA members working towards a sustainable energy future.

It delves into the achievements of Sweden, Costa Rica, Brazil, New Zealand and Spain, which have successfully navigated the complexities of energy transition. It highlights their unique approaches and innovative solutions. These best practices can potentially guide ERRA countries in adopting effective strategies for the energy transition. 

The report is structured as follows:

• Chapter 1 presents the methodology for the choice of the countries analysed.
• Chapters 2-6 highlight the evolution of the energy mixes, targets, policies and example projects related to energy transition in each of the five countries.
• The Summary and Recommendations chapters provide key findings from the study.

This is Part 2 in a series of booklets that aim to provide individuals working in the regulated aviation, communications, energy, rail and water sectors with an introductory guide to the principles and practices of economic regulation.

The focus of this booklet is price regulation. Specifically: how do regulators calculate the price controls?

• This Part explains that there is a standard and conceptually quite simple methodology that the UK regulators apply in most of the price reviews they carry out.
• It also outlines that different regulators have, over time, adapted the basic price-setting model in different ways, creating subtle but important differences in approaches between the sectors.

This study examines the production, transport and supply costs of key Power-to-X products for the year 2030. A total of 39 globally distributed regions in developing and emerging countries were therefore analyzed in terms of their renewables and Power-to-X production and supply cost potential. Power-to-X refers to processes in which electricity is converted into storable energy carriers. “Power” refers to the use of green electricity obtained from renewable energy sources, and “X” stands for the form of the energy produced, e.g. gas or liquid, or its intended product, e.g. ammonia.

Some of the conclusions for optimal Power-to-X production:

• Low electricity generation costs for wind and solar, connected with high full load hours, have a significant impact on the utilization of electrolysis and thus on the entire power-to-X chain.
• Locations with favorable combined conditions for wind and PV power generation can in many cases be more advantageous than locations with extremely good conditions for only wind or PV alone.
• Low capital costs have a high overall impact on production and supply costs.

This study was prepared by the Fraunhofer Institute for Solar Energy Systems ISE on behalf of the H2Global Foundation.

The comprehensive report by the ERRA Customer Protection Working Group (CP) on New Phenomena in the Energy Markets examines the regulatory landscape for energy prosumers, citizen energy communities, as well as peer-to-peer trading and energy sharing across various ERRA member countries. The study evaluates the legal frameworks, practical instances, and operational challenges associated with these novel energy market concepts, shedding light on diverse approaches adopted by different states.

The findings of this report serve as valuable insights for policymakers, regulators, and energy sector stakeholders as they navigate the complex terrain of modern energy markets across many jurisdictions.

Establishing appropriate institutional architecture is important to integrate power systems across borders and facilitate electricity trading, as even if the necessary infrastructure is in place, it does not automatically follow that it is being used to exchange power effectively. The co-ordination of all stakeholders – governments, utilities1 and regulators – is required within jurisdictions, as is the creation of regional entities to support and oversee the integration process.

This report therefore examines stakeholder roles at different stages of crossborder integration to enable multilateral power trade. As energy regulators are our main audience, we focus on their roles and responsibilities after briefly addressing those of governments and utilities.

This document was developed under the Regulatory Energy Transition Accelerator (RETA) initiative, which aims to enhance the capacity of regulators to increase the speed of clean energy transitions. It is part of a series of guidance notes prepared by the IEA, the World Bank’s Energy Sector Management Assistance Program (ESMAP) and IRENA to help key stakeholders navigate the challenges associated with regional power system interconnections, by providing analytical outputs and examples of best practices for regulatory frameworks and mechanisms. These notes focus on the soft infrastructure of cross-border power exchange, in accordance with the priority topics identified through a survey of regulators in February-March 2023.

Published by the Hungarian Energy and Public Utility Regulatory Authority (MEKH) on the occasion of the 20th ERRA Annual Conference on 9-10 October 2023 in Budapest.

Publication includes: 

• Key Aspects of the Hungarian Economy
• Hungary’s Energy Sector at a Glance
• Hungary’s Electricity Sector Updates
• The Natural Gas Sector Updates
• Heat Production
• Sustainability

Energy regulatory bodies play one of the most essential roles in modern energy systems. Considering the international experience, most existing legislations define the basic principles of the functioning of the energy regulatory bodies, which are more or less common at the international level.

It is worth noting that the functions of energy regulators, which are determined by the modern legal regulations of different countries, undergo constant transformation, improvement and development over time. In addition, the discussion about the role and function of energy regulators in the future is still ongoing. The preceding research paper aims to analyze these issues. It presents the functional evolution of energy regulators from the beginning. Some considerations regarding the future of energy regulators are also offered. The paper also presents the results of the Survey conducted among the regulators of different countries of the world. It provides essential information on the functional evolution of the regulators and the perspectives of how the regulators see their future activities and functions.

The research paper was prepared b Dr. Givi Adamia, Secondee of ERRA, Chief Specialist of the Legal Department at the Georgian National Energy and Water Supply Regulatory (GNERC). 

This report highlights experiences from the recent energy crisis that can serve as a guide for Energy Regulators Regional Association (ERRA) member countries’ preparation for and responses to future crises.

Drawing on examples from a wide range of countries, with different energy markets and systems, the report provides:

• An overview of short-term policy and regulatory measures adopted to address the crisis (mostly to support access to affordable energy) and lessons that emerge from these;
• In the context of evolving energy supply and market paradigms, consideration of longer-term policies and measures, including for electricity market design.

Guarantees of origin (GOs) are one of the key tools for greening the energy sector and contributing to the transition to net-zero energy. The basic idea of a system of GOs is based on the physical fact that once the energy produced is delivered to the electricity, gas, or heat system, its origin can no longer be distinguished. In order to support the installation and efficient operation of various renewable energy technologies, the members of the ERRA Renewable Energy Committee have undertaken the task of mapping the existence of GOs schemes.

We now publish our latest internal survey results on Guarantees of Origin Systems, prepared based on information received from 20 ERRA-member countries. 

The Netherlands is faced with the challenge of reaching carbon neutrality by 2050. This challenge requires substantial efforts from network operators and has prompted the energy regulator ACM to take a critical look at the way it organizes the regulation of network operators. It is important to obtain, at an early stage, an accurate picture of both, the bottlenecks and the opportunities with regard to the energy transition, arising from the regulation of network operators. In this regard, insights into the regulation of network operators in other European countries can be of great value. ACM has commissioned DNV Energy Systems (“DNV”) to obtain the insights.

The purpose of the study is to gather inspiration for instruments and new insights which could be considered in the Netherlands.

This is done by reviewing the main characteristics and effectiveness of the instruments used in the economic regulation of electricity transmission and distribution networks in selected countries. The list of countries is Belgium, Germany, Finland, Italy and Great Britain (main sample); and Norway, Australia and Emirate of Abu Dhabi (United Arab Emirates) (extended sample). Building on the findings from the analysis, we assess the applicability of regulatory instruments for the regulatory arrangements in the Netherlands.

The analysis reviews major properties of the regulatory instruments in the investigated countries. The instruments are grouped in the following regulatory areas: price regulation methods, OPEX and CAPEX classification, assessment methods, efficiency incentives, investment incentives, innovation incentives, supplementary incentives, forward-looking estimations, dealing with uncertainty and new thinking / new concepts.

ACER, in collaboration with PwC consultants, publishes its second report on unit investment costs indicators. In addition, ACER publishes an energy infrastructure unit investment cost calculator, in Excel format, to facilitate future estimations of unit investment costs.

• the analytical methodology employed;
• the consultation process with stakeholders;
• the statistics for the collected data;
• reference unit investment costs values for most common energy infrastructure;
• projected reference cost values for different emerging energy infrastructure assets such as  large-scale electrolysers, electric batteries, hydrogen pipelines, and carbon dioxide pipelines; and
• a comparison with 2015 unit investment costs figures.

1. with Mr. Simon Shutinoski, Chief Executive Officer of the National Electricity Market Operator MEMO, which operates the exchange,
2. with Mr. Marko Bislimoski, President of the Energy and Water Services Regulatory Commission of North Macedonia, who approved the trading rules.

• Exclusive interview with Mr. Luca Lo Schiavo Deputy Director of the Infrastructure Regulation Department at the Italian Regulatory Authority for Energy (ARERA).
• Valuable insights from 17 member regulators regarding the diverse range of projects and ongoing developments in Energy Transition.
• Updates regarding the recent Energy Transition Activities within ERRA. 

The following report is the new addition to the Status Quo Report on Deregulation of Electricity Markets in 17 ERRA Member Countries published by the ERRA Secretariat in March 2022. It follows up with the previous report by the members of the ERRA Electricity Markets and Economic Regulation Committee (EMER COM) with the current developments in the electricity sector, and how the energy crisis impacted the deregulating electricity market within these countries from March 2022.

• Overview of the impacts of the energy crisis;
• Overview of the degrees of electricity market deregulation;
• Wholesale electricity market structure – supply and demand, unbundling, organized markets (DAM, IDA, BM, OTC);
• Financial instruments;
• Cross Border Trade;
• Balancing and Ancillary services;
• Existing public service obligation schemes.

The ERRA Glossary of Energy Transition Terms comprises about 150 practical definitions referring to energy transition and climate change. The resource was compiled by ERRA Energy Transition Task Force. 

Beyond the short-term issues, the energy crisis in Europe raises long-term questions that are disrupting the organisation of the electricity markets: security of supply, price levels and volatility, investments in the energy transition, costs for consumers, etc. CRE France held its Symposium in December 2022 on this topic and the speakers/ group of academics completed a report with a review of the academic literature on the issues of the reform of the European electricity market.

Energie-Control Austria, the Hungarian Energy and Public Utility Regulatory Authority (MEKH) have contracted a consultant to develop the Household Energy Price Index for Europe (HEPI) in order to track energy prices.

HEPI provides granular insight into current and historical European residential energy prices in 33 European capital cities on a monthly basis starting from January 2009. 

The Story describes the Index with a methodology note and provides an interview with Mr Johannes Mayer, Director for Regulation and Competition at E-Control, who describes project background, synergies stemming from the cooperation with MEKH as well as project outputs and outcomes.

In this 7th Benchmarking Report on the Quality of Electricity and Gas Supply, for the first time jointly written by CEER and the Energy Community Regulatory Board (ECRB), the main focus is on monitoring of the quality of electricity and gas supply, which constitutes an essential tool in the overall supervision of well-functioning energy markets. CEER and ECRB seek to provide valuable information on the practices regarding quality of supply and the regulatory framework, with associated recommendations for good regulatory practices and incentives that could be adopted in Europe.

A few findings to highlight include that, excluding exceptional events, the majority of countries decreased or at least maintained their unplanned minutes lost and the number of interruptions per customer from the beginning to the end of the observed period for electricity. Interruptions in gas, while much less common than those in electricity, can lead to a high risk of safety, resulting in greater efforts to avoid an interruption than in electricity. Even though gas interruptions are less frequent, they usually last longer than those in electricity. Many countries reported improved continuity of supply (a shorter duration or a lower number of interruptions) when incentive regimes/compensation schemes were implemented, even with indicators that are not regulated.

The summary report contains all takeaways from the workshop ERRA held with MEDREG on December 6th, 2022 in Istanbul with the main focus on regulatory sandboxes.

• Regulatory sandbox is a learning process where current regulatory framework is deviated through #regulatoryexperiments in order to take the pace with the faster developing areas like technology and innovations,
•  To adapt to the ongoing transition, the value-added projects for the energy system should be recognised, regulators should be innovative and open the regulatory frameworks for derogations, exemptions, pilot projects,
•  Regulators can be the drivers of the project or can also be the ones to evaluate the projects of the network operators or the market participants,
• In the light of the experience of the regulators who are implementing Regulatory Sandboxes, the most important and critical point is the output, so the project whose benefits overweigh the costs of the project should be recognised.

This companion piece to the Fall 2022 ECA Economic Update (World Bank 2022c) provides an overview of the policy options available to ECA countries to respond to the energy price shock and examines how this crisis could harness the clean energy transition to enhance collective energy security. The options to support energy markets, vulnerable households, and firms will vary, depending on specific country contexts, including exposure to gas and electricity supply risks and the fiscal space available to mitigate their impact. Well-coordinated and calibrated fiscal and monetary policies are needed to manage the impact of the price shock. Countries will also need to consider the implications of any policy choice on the transition to a greener economy and development trajectories.

• Section 2 provides an overview of the broader economic impact of the energy price shock on economic growth, inflation, and public finances in the ECA region.
• Section 3 provides policy options to help countries adapt to the energy crisis related to managing both demand and supply.
• Section 4 presents a set of principles to guide the policy response for supporting vulnerable households.
• Section 5 presents a set of principles to guide the policy response for supporting firms.
• Section 6 concludes with a summary of recommendations for dealing with the crisis and transitioning to a greener economy.

Europe has recently confirmed and augmented its commitment towards full decarbonization through the EU Green Deal and the Fit for 55 package. Energy policy struggles to keep up with technical and business novelties, often constituting an obstacle for technological innovation. Regulatory sandboxes and pilot projects have recently played a central role in the policy strategy adopted by many countries, but a common framework is still missing. In this work, moving from the approaches adopted by Ofgem in Great Britain and Arera in Italy, a list of experimental dimensions is firstly proposed, and the most important trialling experiences individuated worldwide are mapped on it. Therefore, clustering these experiences based on their characteristics, a reference taxonomy to design and classify regulatory experiments is proposed. In parallel, topics addressed within trials are described and mapped on the main challenges posed by EU Green Deal targets on the power system. The analysis highlights that there is no one-size-fits-all approach towards regulatory experimentation, and that effort is needed to ensure coordinated initiatives within and among European countries, in order to timely achieve a netzero energy system in the most effective way.

ERRA Renewable Committee's survey: E-Mobility: Status Update, Plans and Related Regulatory Issues. The recent increase in energy costs increases the need for smart integration of EVs into power grids to lower the cost for EV users and service providers. EVs have been on the radar of energy regulators for quite some time, that is why ERRA regularly monitors developments with regards to e-mobility regulations among its members.  The internal survey results on E-mobility, prepared based on information collected from 17 ERRA Renewable Committee Members. 

Review and executive summary by Regulatory Assistance Project (RAP).

Based on the latest energy data and market developments, this year’s WEO explores key questions about the first global energy crisis: Will it be a setback for clean energy transitions or a catalyst for greater action? How might government responses shape energy markets? Which energy security risks lie ahead on the path to net zero emissions?

This flagship publication of the IEA has appeared every year since 1998. Its objective data and dispassionate analysis provide critical insights into global energy supply and demand in different scenarios and the implications for energy security, climate targets and economic development.

ERRA continues to update its concise Glossary of energy sector terms specific to the energy regulatory community. Great stuff for entry level regulators!