ENTSO-E’s recent report has called for an evolution of remuneration frameworks, most notably an increase in incentives for more innovation.
SuperNode believes prioritising innovation is vital to strengthening the current grid and facilitating the increased renewables share and achieving our decarbonisation goals.
Marcos Byrne, Market and Policy Analyst at SuperNode, has said:
“Evolving the remuneration framework is vital for a changing energy system. TSOs must be encouraged to progress and move towards a more efficient and effective system. An open approach to innovation will be vital for the successful integration of the renewables needed to decarbonise.”
The basis remuneration for most TSOs has only rewarded investment in physical assets which has discouraged risk taking and innovation. Some regulators have introduced performance based incentives which has encouraged quality of service, stakeholder involvement and thus more innovation. This is a trend that must continue to enable a more efficient, effective grid.
Read the summary of the report here.
Read the full report here.