Incentive power and sustainability of different incentive regulation regimes in German electricity distribution
Incentive power and sustainability of different incentive regulation regimes in German electricity distribution
The project "Incentive power and sustainability of different incentive regulation regimes in German electricity distribution" deals with the development of electricity distribution grids, which are an important element in the implementation of the energy transition. The project compares various incentive regulation regimes for network operators implemented in Germany. It will be examined to what extent these designs systematically provide incentives to make economically less than optimal investments or to manage networks inefficiently. Inefficient or too low network investments can hamper the success of the energy transition. In particular, the presence and the reactions to the so-called ratchet effect (omission of cost reductions for revenue stabilization) are examined and investigated.