T. Jamasb, Manuel Llorca, L. Meeus, Tim Schittekatte
{"title":"Energy Network Innovation for Green Transition: Economic Issues and Regulatory Options","authors":"T. Jamasb, Manuel Llorca, L. Meeus, Tim Schittekatte","doi":"10.51138/UMNP7884","DOIUrl":"https://doi.org/10.51138/UMNP7884","url":null,"abstract":"In this age of low-cost capital and stimulus packages, is it the best time to heavily invest in tomorrow’s energy networks and research infrastructure? In the academic literature it is widely acknowledged that innovation is key to decarbonising the energy sector and fostering sustainable development. However, post liberalisation has been struggling to promote R&D and innovation. Is this a case of business, regulatory, or policy failure, or are there other factors involved? In this paper, we discuss the reasons for slow uptake of new technologies in energy networks and propose some remedies for the European context, where innovation in the area of energy networks is crucial for the implementation of the Green Transition. The solutions to address this shortfall need to be considered in an overarching manner. The specific points raised here are based on incentive regulation, the establishment of competitive funding models like Ofgem’s Low Carbon Network Fund, and a large European collaborative research hub.","PeriodicalId":126040,"journal":{"name":"Danish utility regulator's anthology project series on better regulation in the energy sector","volume":"52 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"134452300","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Freeman, Frikk Nesje, Daniel Møller Sneum, Emilie Rosenlund Soysal
{"title":"Discounting and the Green Transition: District Heating in Denmark","authors":"M. Freeman, Frikk Nesje, Daniel Møller Sneum, Emilie Rosenlund Soysal","doi":"10.51138/BZYB4621","DOIUrl":"https://doi.org/10.51138/BZYB4621","url":null,"abstract":"Taking Aalborg as the basis for a case study, we consider the discount rates, annuity rates and costs of capital that were used in recent socio-economic and financial Net Present Value (NPV) analyses of a proposed geothermal district heating plant. While the core NPV analysis applied a real social discount rate of 4 percent, in keeping with Danish government guidance, emissions and electricity prices were based on costs of capital that differed from this rate, as did the annuity rate applied in the financial analysis of the project. While the different rates are carefully justified in each setting, we question whether there is consistency in the approach taken to intergenerational welfare across different steps of the analysis. The use of high corporate rates in some contexts potentially makes it more difficult for Green Transition projects to meet the legal requirement of being evaluated as socio-economically optimal.","PeriodicalId":126040,"journal":{"name":"Danish utility regulator's anthology project series on better regulation in the energy sector","volume":"25 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2021-03-15","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"131625461","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}