Publication - Energy Decentralization in the European Union

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Title

Energy Decentralization in the European Union

Author

Rafael Leal-Arcas

Published in

February 2019

Abstract

This article examines the status of energy decentralization in the European Union (EU). It discusses why it is in the EU’s interest to decentralize its energy markets and analyzes the situation in several EU member states. The article specifically focuses on electricity markets and looks at how decentralization is taking shape with regard to these markets. In doing so, it analyzes the regulatory environment in some EU jurisdictions to identify to what extent it is conducive to decentralization. It then looks at how things stand in terms of new tools and technologies to facilitate decentralization, such as smart grids and meters, electric vehicles, demand response, and storage. The article explores how specific EU member states are progressing towards deployment of these tools and technologies, and the specific needs and regulatory barriers in each. It also offers recommendations for how regulation can be more encouraging. The article in addition discusses electricity interconnections in the EU as a vital step towards decentralization that will boost energy security and energy efficiency. Lastly, the article includes a detailed examination of data protection concerns that arise from the advent of new technologies that collect personal information, such as smart grids. It assesses current regulation on data protection and identifies areas for improvement.

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