With increased renewable energy installation, ‘Network bottlenecks’ have rapidly risen to be one of the key bottlenecks to further progress on net zero targets. This has led to lively discussion on the most efficient approach to alleviating such bottlenecks and what is the correct role of incentives for network owners and operators. Network revenues should not be subject to developments that they cannot reasonably control, such as the upstream market for renewables capacity, but regulators must also ensure that price control regimes and connection policies do not put networks in a ‘regulatory straight jacket’. In this ECA Insight, Scott Edmonds provides an overview of the ‘toolkit’ regulators have for efficiently diagnosing and remedying network bottlenecks without putting undue risk on network revenue recovery. Please read the Insight here.
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