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Elena de Benavides _Energy transition and energy regulatory sandboxes_Funseam Seminar

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Elena de Benavides _Energy transition and energy regulatory sandboxes_Funseam Seminar

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This workshop will focus on how this new tool supports innovation in the energy transition and on analysing the innovative experimentation tools available and their application in Europe.
A round table with regulatory authorities, companies, and research centres will provide leads on the relevance of Energy Regulatory Sandboxes to facilitate the market launch of innovations helpful to move towards a decarbonized economy.
This Workshop runs as part of the European cooperation TR@NSNET project.

This workshop will focus on how this new tool supports innovation in the energy transition and on analysing the innovative experimentation tools available and their application in Europe.
A round table with regulatory authorities, companies, and research centres will provide leads on the relevance of Energy Regulatory Sandboxes to facilitate the market launch of innovations helpful to move towards a decarbonized economy.
This Workshop runs as part of the European cooperation TR@NSNET project.

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Elena de Benavides _Energy transition and energy regulatory sandboxes_Funseam Seminar

  1. 1. 1 WORKSHOP ENERGY TRANSITION AND ENERGY REGULATORY SANDBOXES 10 DE MARZO 2022
  2. 2. “Learning by doing”
  3. 3. Innovation and regulation must go hand in hand in a highly regulated sector such as the energy sector
  4. 4. 4 Conventional Power System Generation, Transmission and Consumption TRANSMISION SUBTRANSMISION DISTRIBUCION 400 kV 69-132 kV 11-33 kV 400 V AC
  5. 5. 5 Current Scenario Higher penetration of Power Electronic-Interfaced Systems (PEIS) TRANSMISION SUBTRANSMISION DISTRIBUCION 400 kV 69-132 kV 11-33 kV 400 V AC
  6. 6. 6 Close future situation ¿¿¿¿????? TRANSMISION SUBTRANSMISION DISTRIBUCION 400 kV 69-132 kV 11-33 kV 400 V AC DC SMART AC+DC SMART AC+DC DC AC REDES DE COMUNICACIÓN
  7. 7. Energy transition is a journey from the present to a decarbonised future For that journey, we only have two tools: innovation and rules
  8. 8. We use Open Innovation to move deeper and faster, achieving our goals on energy transition, but we need Sandboxes to turn POCs on reality.
  9. 9. Temporary regulation to facilitate innovation It is necessary to start up as soon as possible the regulatory sandboxes
  10. 10. 11 How do we understand that sandboxes should look like? Sandboxes should temporarily eliminate the disincentives to innovation o Cross-activity or cross sector limitations. Limitations on carrying out cross-cutting projects • Joint projects of Red Eléctrica with other companies inside and outside the energy sector, • Take into account impact of regulations outside the electricity sector (air navigation, telecommunications, etc.) o Risk unbalances. The assumption by the regulated company of the entire high risk of innovation projects due to their technological uncertainty. • Progress should be made in the specific remuneration treatment of these projects under risk-sharing schemes. o Regulatory gaps. The absence of regulation applicable to innovations and new technological developments (e.g. storage, renewable hydrogen, etc). • The sandbox must provide the minimum regulation necessary to carry out projects with the necessary legal certainty
  11. 11. 12 And after the regulatory sandbox, what? ✓ Apply the “learnings by doing” . The learning achieved with the pilot projects must be internalized in the design of the new regulation ✓ Re-define structures with adequate incentives for innovation in the future. ✓ Re-Think about the cost and profits on innovation project: Profit-sharing schemes, specific remuneration schemes, tax incentives, compensations…
  12. 12. 13 ➢ Regulation and innovation must go hand in hand. ➢ Temporary regulations are needed to foster innovations and the development of new technologies. ➢ Long-term regulation should be adaptive and flexible enough to foster innovation and allow the actual introduction of new technologies to achieve the sector goals regarding to energy transition. In summary

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