D5.9: Playbook of regulatory recommendations for enabling new energy systems

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The deliverable D5.9: Playbook of regulatory recommendations for enabling new energy systems was submitted by Trondheim Kommune (TK) and Powel (POW), with contributions from TE, NTNU, and ISOCARP in October 2021. The executive summary of the deliverable is available below and the full deliverable at the end for download:

In the +CityxChange project we have designed, described and demonstrated local markets in principle based on a wide range of lessons learned from the existing European power market, and documented in several +CityxChange deliverables. An important area is mapping of the existing regulatory framework and how this is influencing the power market roles both in a global and local market set-up (Bertelsen, Livik and Myrstad 2019). This report discusses in detail how regulatory issues premise the development of a PEB/PED (Positive Energy Block/District) focused on the Trondheim, Norway case, but with application on the EU level. The dispensation applications for the local demonstrations, which ask for permissions to demonstrate local energy markets in a way that strengthens the incentives to develop and operate PEB/PED, are the outcome of the discussion with the national regulator for Norway. The dialogue and applications are done with a post-energy transition understanding as guidelines. An energy system approach and understanding was addressed in the dialogue. This was a prerequisite to understand the determining factor a renewed regulatory framework represents in the green transition.

To fully cover all local energy system issues and market actions, a methodology was chosen that decomposed the energy system operation in a list of simplified actions. The issues and actions were then analysed and recommendations were given for changes of the regulatory framework. 

Key issues discussed in detail are the fast growth of installed distributed renewable energy resources, energy/capacity storage, and customers’ flexibilities. In addition it is analysed how the existing power market construction with roles and actions could – and should – be transformed to markets tailored to serve all local renewables and flexibilities. Regulatory barriers that may stop and slow down the energy transition are identified. As a result, the +CityxChange project in Trondheim has applied to the regulator for dispensations from existing Norwegian rules regarding market operation and settlement/accounting.

The process to overcome regulation obstacles is managed stepwise and ends with the realisation of the PEB/PED. The process has been supported by a joint understanding of what will be the situation in a post-energy transition phase (ref. figure 0.1). Using this strategic approach, regulatory barriers have been defined both for the demonstrations and more generally for local energy systems. The barriers are identified as critical both when it comes to investments in renewables and flexibility and to how their value shall be justified in operational phases in a PED/PEB, including local market set-up.”

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