InnoEnergy, together with FUNSEAM and the Chair of Energy Sustainability at the University of Barcelona, Spain, has developed new econometric models for European energy regulators.
These innovative models allow regulators to assess the potential impact of their choices on the retail price of electricity, income transfers between producers and consumers, and economic growth.
The research sought to understand how Europe’s energy decisions affect electricity regulation. The resulting models examine the effect of network and renewable energy promotion costs on electricity retail prices, consumption and economic growth.
Diego Pavía, CEO of InnoEnergy, said: “Electricity regulation is complex at the best of times, and we found it surprising that the economic impact of these important regulatory decisions hadn’t been analysed sooner.
“These groundbreaking new models will enable regulators to better understand the power of their choices on energy costs and the uptake of renewable electricity.”
The economic models – applicable to any European country – have already been validated in Germany, the UK and Spain.
Dr Maria Teresa Costa, former president of the Spanish energy regulator CNE, and manager of the Chair of Energy Sustainability, added: “This research is vital for securing a sustainable energy future. Our goal is to provide Europe’s electricity regulators with an in-depth, robust method of analysing different energy support choices to ensure the economic viability of the power system.”