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#Energy & Sustainability

Regulation and Standards for a Resilient European Energy System

  • February 22, 2023
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Download issue paper here

The occurrence of nature-based extreme events is causing serious damage to critical infrastructures and physical assets, such as gas transport and electricity transmission infrastructure. Those extreme events are increasing both in terms of frequency and scale, and sometimes cumulate with other crises (e.g., health, economic, political).

Resilience has appeared as a new paradigm applying across many sectors and infrastructures, including energy. Resilience can be defined as the ability of infrastructures to overcome extreme events with minimum disruptions, including duration of the restoration phase. Ensuring and building resilience requires structural adaptations. Therefore , investments are vital and urgent to increase resilience of the energy sector, and so is the adaptation of operational practices to the “new normal” of extreme events.

This CERRE issue paper, led by Catherine Banet, Friðrik Már Baldursson and Chi Kong Chyong, focuses on new EU regulatory and legislative approaches to increase infrastructure resilience. The scope of the analysis is on energy transport and distribution infrastructures operators and the relationship to other actors. This includes a reflection on the allocation of responsibilities among actors and cross-sector coordination for ensuring resilience.

The focus of the study is on the regulatory regime for gas and/or electricity operators. In particular, it looks into whether regulation on their investment and operation practices needs to be reconsidered, taking resilience aspects into consideration. It also identifies the main issues and shortcomings in current regulation, and starts identifying regulatory pathways for fostering resilience of the energy system through the regulation of operators’ role. An important issue is how investment, as well as preventive operations and maintenance costs, are taken into account in remuneration mechanisms. More generally, incentives for enhancing resilience to disruptive events are mapped and analysed from legal and economic perspectives.

This issue paper is part of a larger CERRE project on Energy Infrastructure Resilience, and a recommendations report will be published in Q2 2023. For more information, get in touch with Albéric Mongrenier, CERRE Director for Energy, Mobility and Sustainability.

Author(s)
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Friðrik Már Baldursson
Friðrik Már Baldursson
Research Fellow
and Reykjavik University

Friðrik Már Baldursson is a CERRE Research Fellow and Professor of Economics at the Reykjavik University Business School where he formerly served as the Dean.

He has extensive experience of economic analysis from a decade of service as Head of Economic Research and Managing Director at the National Economic Institute of Iceland as well as from various consultancy projects.

He has been active in public service in various roles, including the Supervisory Board of the Central Bank of Iceland. In October 2008, he led negotiations with the IMF on Iceland’s behalf.

Prof. Baldursson holds a PhD in Applied Statistics and Probability from Columbia University as well as an MSc in Economics.

Friðrik Már Baldursson is a CERRE Research Fellow and Professor of Economics at the Reykjavik University Business School where he formerly served as the Dean.

He has extensive experience of economic analysis from a decade of service as Head of Economic Research and Managing Director at the National Economic Institute of Iceland as well as from various consultancy projects.

He has been active in public service in various roles, including the Supervisory Board of the Central Bank of Iceland. In October 2008, he led negotiations with the IMF on Iceland’s behalf.

Prof. Baldursson holds a PhD in Applied Statistics and Probability from Columbia University as well as an MSc in Economics.

Catherine Banet (2)
Catherine Banet
Academic Co-Director
and University of Oslo

Catherine Banet (PhD) is Professor of Law at the University of Oslo, and Head of the Department for Energy and Resources Law, Norway. Her legal research activities focus on energy market design, energy transport infrastructures regulation, support schemes and financing models, focusing on renewable energy and notably offshore wind, climate change mitigation measures such as carbon capture and storage (CCS), and hydrogen regulation.

Prof. Banet has a background from the private law practice (Norway, France), the European Commission (DG ENV), U.S. diplomatic mission and academia. She is a member of the Academic Advisory Group of the Section on Energy, Environment and Infrastructure Law of the IBA, and Chair of the Board of the Norwegian Energy Law Association.

Catherine Banet (PhD) is Professor of Law at the University of Oslo, and Head of the Department for Energy and Resources Law, Norway. Her legal research activities focus on energy market design, energy transport infrastructures regulation, support schemes and financing models, focusing on renewable energy and notably offshore wind, climate change mitigation measures such as carbon capture and storage (CCS), and hydrogen regulation.

Prof. Banet has a background from the private law practice (Norway, France), the European Commission (DG ENV), U.S. diplomatic mission and academia. She is a member of the Academic Advisory Group of the Section on Energy, Environment and Infrastructure Law of the IBA, and Chair of the Board of the Norwegian Energy Law Association.

Kong Chyong
Kong Chyong
Research Fellow
and Oxford Institute for Energy Studies

Dr. Kong Chyong is an applied energy economist and policy analyst with a strong background and more than fifteen years of experience in applications of economics and operational research methods to energy and climate policy questions. Kong’s research interests include economics and geopolitics of Russian natural gas exports, with a focus on Russo-Ukrainian bilateral relations and impacts on Europe and global gas markets. He also works on large-scale modelling of power markets, with a focus on low-carbon generation sources and integration of renewables.

Currently, Kong is a Senior Research Fellow in Energy System Economics and Modelling at the Oxford Institute for Energy Studies. Before this, he was Senior Research Scholar with the Center on Global Energy Policy at Columbia University. Prior to joining Columbia University, Kong was a research associate with the Energy Policy Research Group (EPRG) based at the Cambridge Judge Business School, University of Cambridge. Kong holds a PhD in Energy Economics and Policy (2011) and an MPhil in Technology Policy (2007) from the University of Cambridge. His PhD topic concerned Russia’s strategic natural gas export policy and Gazprom’s pipeline investment strategy.

Prior to his studies at Cambridge University, Kong was a researcher at the at the National Academy of Sciences in Ukraine.

Dr. Kong Chyong is an applied energy economist and policy analyst with a strong background and more than fifteen years of experience in applications of economics and operational research methods to energy and climate policy questions. Kong’s research interests include economics and geopolitics of Russian natural gas exports, with a focus on Russo-Ukrainian bilateral relations and impacts on Europe and global gas markets. He also works on large-scale modelling of power markets, with a focus on low-carbon generation sources and integration of renewables.

Currently, Kong is a Senior Research Fellow in Energy System Economics and Modelling at the Oxford Institute for Energy Studies. Before this, he was Senior Research Scholar with the Center on Global Energy Policy at Columbia University. Prior to joining Columbia University, Kong was a research associate with the Energy Policy Research Group (EPRG) based at the Cambridge Judge Business School, University of Cambridge. Kong holds a PhD in Energy Economics and Policy (2011) and an MPhil in Technology Policy (2007) from the University of Cambridge. His PhD topic concerned Russia’s strategic natural gas export policy and Gazprom’s pipeline investment strategy.

Prior to his studies at Cambridge University, Kong was a researcher at the at the National Academy of Sciences in Ukraine.

More publications

on #Energy & Sustainability

Market Design Options for CCS in Europe: CO2 Transport and Storage Regulation
25 March 2025
Europe’s Pathways to Net Zero: The Role of Renewable Gases and Flexibility
15 October 2024
Speeding Up Renewable Energy Permitting in Europe: Overcoming Implementation Challenges
15 October 2024
A Balanced Path to a Net Zero Future: Expansion, Flexibility, Integration and Innovation
15 October 2024
Securing Europe’s Net Zero Path with Flexible LNG
25 September 2024
Ambitions for Europe 2024-2029
27 June 2024
Towards a More Dynamic Regulation for Energy Networks
26 March 2024
Scaling up Offshore Wind Energy in Europe
11 October 2023
Building Resilience in Europe’s Energy System
1 June 2023
Building Europe’s Hydrogen and Renewable Gas Markets
10 February 2023

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