Digital platforms in the energy sector – A menu of regulatory options for policy makers

Abstract

The significance of digital platforms in the economy has been dramatically growing the past decade. Today, the seven biggest platforms capitalize about 9 trillion USD or roughly half of the total GDP of EU-27. The rise of platforms has not only met with unrestrained enthusiasm. Regulators increasingly look into ways to constrain market power of digital platforms. In the European energy sector, roughly 200 platforms maintain business activities, that, at times, blurry the lines between different traditional segments of the energy supply chain. This paper presents a holistic look at digital platforms in the energy sector, their revenue models, typologies and regulatory options. Eventually, we present a possible menu of regulatory options for energy policy makers.