Without energy storage, the EU target for renewable energy cannot be reached. And that can only succeed if the incentives for investment are set correctly and if “ownership unbundling” rules in the EU energy market are strictly enforced, writes Dr. Hans Wolf von Koeller.
Dr. Hans Wolf von Koeller is Head of Energy Policy at STEAG GmbH, a German company which plans, constructs, and operates power plants and distributed energy facilities using fossil fuels and renewable energy sources.
Did you know that The Landlord’s Game is the predecessor of the popular board game Monopoly? In 1903, Elizabeth Magie developed the Landlord’s game, and created two sets of rules for her game: an anti-monopolistic set in which all were rewarded when wealth was created, and a monopolistic set in which the goal was to create monopolies and crush opponents.
Monopoly is still fashionable, the design has changed and so has the owner of the trade mark. But the rules of the game itself are not for sale. The most powerful players cannot climb to new levels of dominance where they are able to gain control of the game.
So, is the energy system any different? Unbundling in the EU energy market was intended to create a kind of anti-monopolistic set of rules. Competition in a European energy market was meant to lead to lower prices for customers but also secure the supply of energy, especially electricity. At the core of unbundling is a strict separation of the natural monopoly at all grid levels from power production, supply to customers and load management.
However, these fundamental principles risk being endangered by the electricity market reform currently under discussion at European level. Under the upcoming Austrian presidency of the EU, the Council and the European Parliament are expected to agree on a set of rules that foster innovative solutions for new services to participate in the system, including electricity storage.
Yes, EU energy rules are under constant change. This alone is already challenging for all players. But the greatest threat is if the rule makers decide to allow the game board – the grid – to take an ever increasing part in the game.
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