Saskia Lavrijssen
Saskia Lavrijssen - Tilburg University
Title: "Towards a consistent approach for regulating the multi-energy carrier energy system"
• Download the presentation here.
In the Netherlands, the energy transition plays a pivotal role in policy decisions preventing or mitigating climate change. New forms of energy generated with sustainable sources and new ways of storing energy are being stimulated. The combat against climate change fuels the transition of the (Dutch) energy sector into a smart energy system. This transition towards a smart energy system is characterised by several elements. It entails a shift from centrally generated energy from fossil fuels to energy generated from more local, renewable sources, that are often volatile, like wind energy and solar energy. Due to the introduction of demand-side management and storage facilities for energy (e.g., batteries), the system becomes more flexible and more supply-driven than demand-driven. Energy consumers increasingly become “prosumers”; they do not only withdraw energy from the distribution network, but also produce energy themselves and feed it into the network. IT applications are utilized for optimal alignment of supply and demand and the integration of flexibility services delivered by local distributed generation, storage facilities and electric vehicle charging units connected to the local grids.
In spite of the relatively fast-paced changes in the energy sector, the legislative framework and legal safeguards currently in place are still based on the traditional market model, in which centrally-managed, large-scale production units supply energy to meet user demand. From this perspective, users are viewed as passive actors rather than active players that want to act as “prosumers”. So a discrepancy between technological and economic developments in the energy sector and the assumptions of the existing regulatory framework can be identified, which can be seen as an example of regulatory disconnection that needs to be restored. This is also reflected in the regulation of the Dutch district heating market, where old-fashioned assumptions underly the existing regulatory framework. For instance, the maximum price for heat is based on the price of gas (no-more-than-otherwise principle; niet meer dan anders principe). This principle entails that heat consumers will not pay more for heating, than what they would have paid for heating stemming from gas. As the supply of natural gas will be phased out in the Netherlands, it is not sustainable to link the prices for district heating to the prices for the supply of natural gas.
In addition, as the supply of renewable energy is less predictable than the supply of traditional energy, storage facilities, including power–to–heat systems, and demand response programmes become more important to balance demand and supply. The recent adopted Clean Energy Package, shows that the European legislator has adopted some legislative changes to integrate renewable energy and the active role of energy consumers in the electricity system. However, as the technological developments go beyond the electricity sector, a more holistic and systematic approach towards the regulation of the energy sector and the district heating sector is needed. A well-working regulatory system acting as backbone for the changing energy sector – aligning regulation of different forms of energy carriers (gas, electricity, heat, hydrogen), transport and storage enabling the balancing of demand and supply – can effectively facilitate the transition towards a smart energy system. Currently, such a harmonizing and consistent approach towards the regulation of the energy sector is lacking. The principles of good regulation and good market supervision could play a role in developing a more consistent approach towards the regulation of the energy sector. This presentation will discuss some important regulatory challenges for the energy sector. It will reflect on how the principles of good regulation could help in making choices regarding a future proof Energy law that can cope with technological changes and facilitate the transition towards a smart energy system.
Biography
Saskia Lavrijssen is professor of Economic Regulation and Market Governance of Network Industries at the Tilburg Law School of Tilburg University since 2014. Before that, she was affiliated to the Faculty of Law at the University of Amsterdam as professor of Energy Law. Because of her special expertise in the area of competition law and economic administrative law, she was appointed as deputy judge at the Trade and Industry Appeals Tribunal (2010-2013) in 2010.
In 2006, Saskia Lavrijssen defended her very well-received dissertation on independent competition authorities and good governance at Tilburg University (Boom Juridische Uitgevers, 2006). During her PhD research she worked as a legal researcher at an international law firm in the section Administrative Law and Regulated Sectors. Saskia Lavrijssen was assistant professor of European Law at Tilburg University until 2007. At the time she was also a researcher and research coordinator at the Tilburg Law and Economics Center (TILEC). Throughout her career, Saskia Lavrijssen has specialized in EU law, competition law, economic regulation, energy law, national constitutional and administrative law and issues of good market supervision and regulation. She regularly presents her work at international and national events. She was one of the speakers at a public debate organized by the Dutch national newspaper NRC Handelsblad. She was also invited as an expert to the House of Parliament to reflect on the draft climate agreement. In 2017, Saskia Lavrijssen received a long-term research subsidy from NWO in the context of the Next Generations Infrastructures Program for research into the promotion of data driven innovations in the infrastructure sectors. The research project is called the Longvia project and is performed in cooperation with Alliander, Prorail, Rijkswaterstaat, Vitens and Port of Rotterdam.