Policy, regulation and market design
Our services within policy, regulation and market design meet authorities’ and market actors’ need for professional analysis and advice about:
- How regulations should be designed in order to fulfil defined policy goals efficiently
- How market actors should adapt to and exploit commercial opportunities within different regulatory frameworks
Our analyses and advice are based on a combination of solid welfare economic competences, profound understanding of markets, and of the technical and commercial conditions, and, importantly, of the interaction between markets and policies.
Design and effects of policy measures and the interaction among various policy measures are important for energy market efficiency and efficient energy transition. Recent projects include design of subsidy schemes for renewable energy – including Elcertificates, feed in tariffs, auctions, and investment support – policy framework for energy efficiency, electrification of the transport sector, and design of resource taxation for hydropower and petroleum resources and renewable energy, and distortions due to different tax regimes in different countries.
The economics of energy efficiency >>
Incentives for electrical vans >>
Offshore wind farms as joint projects >>
The impact of taxes on the Norwegian-Swedish Certificate Market >>
Market and grid tariff design
Appropriate market design is a precondition for efficient resource utilization and crucial for the energy transition. Similarly, design of grid tariffs and regulation of grid companies is necessary for well-functioning markets. We work on both wholesale and retail market related questions.
We have a longstanding track record in retail market design, and are in close cooperation with regulators and authorities. We conduct cost-benefit analyses, gap analyses and stakeholder interviews to identify the needs of the industry and their customers, and recommend options to improve market efficiency and competition. Our recent projects include design of cost regulation for natural monopolies, efficient transmission and distribution tariffs, data exchange and datahubs for retail markets, and analysis and recommendations on market barriers.
On the wholesale market side, we recently conducted projects on models for market coupling (including flow-based market coupling), congestion management, allocation of interconnector capacity, capacity mechanisms, loop flows, trading solutions for intraday, reserves and ancillary services markets.
In these projects, we closely interact with our in-house market analysis and strategy teams to evaluate the financial and strategic effects of any decision taken.
Demand response in the Nordic countries >>
Nordic market design
Nordic bidding zones >>
New tariff principles with smart metering >>