Handbook on Electricity Regulation

Edited by Jean-Michel Glachant, Professor, Florence School of Regulation, EUI, Florence and Advisor, Technology University POLITO, Turin, Italy, Paul L. Joskow, Elizabeth and James Killian Professor of Economics Emeritus, Department of Economics, Massachusetts Institute of Technology, USA and Michael G. Pollitt, Professor of Business Economics, Judge Business School, University of Cambridge, UK

• Contents1 Introduction to the Handbook on Electricity Regulation 1Jean-Michel Glachant, Paul L. Joskow, and Michael G. PollittFOUNDATIONS OF ELECTRICITY REGULATION AND RECENT REFORMS2 Designing incentive regulation in the electricity sector 18David P. Brown and David E.M. Sappington3 Cost-of-service regulation of electricity distribution services in the US 44Paul L. Joskow and Richard Schmalensee4 Regulated distribution sector facing the future – the GB experience 68Cloda Jenkins5 Regulated distribution sector facing the future: trends in the European Union 101Christine Brandstätt and Jean-Michel Glachant6 Regulation of access, pricing, and planning of high-voltage transmission in the US 121Joe DeLosa III, Johannes P. Pfeifenberger, and Paul L. Joskow7 Regulation of access, fees and investment planning of transmission in Great Britain 155David Newbery8 The regulatory landscape and investment planning for transmission in the EU 182Paul Nillesen, Otto Jager and Joost Ornée9 The regulation of electricity networks in Australia’s National Electricity Market: user charges, investment and access 201Paul Simshauser10 Retail rate design in the US: time-varying rates for residential customers 233Ahmad Faruqui and Ziyi Tang11 Economics of energy efficiency 256Kenneth Gillingham and Erica MyersREGULATORY MECHANISMS TO GUIDE THE TRANSITION TO NET ZERO12 The grid of the future and what regulators need to know about it 271Janusz Bialek and Mark O’Malley13 Decarbonizing the US electricity grid: policy and regulatory frameworks and challenges 287Judy W. Chang and Henry Lee14 Regulating European distribution systems to achieve net zero: untapping flexibility efficiently 313Tim Schittekatte15 “Behind the meter” developments 336Fereidoon Sioshansi16 Uncertainty, regulation and the pathways to net zero 353Michael G. Pollitt, Daniel Duma and Andrei Covatariu17 How can regulated electricity network companies promote innovation? Lessons from the field of practice 373Leonardo Meeus and Nicolò Rossetto18 Regulation of hydrogen networks and potential market structure 388Chi Kong Chyong and Jackson R. Dalman19 Challenges to expanding EV adoption and policy responses 407Christopher R. Knittel and Shinsuke TanakaNON-OECD COUNTRIES20 Power sector reform in China: economic logic and political reasoning 451Xu Yi-chong21 Regulation of transmission, distribution and retail in India 475Anupama Sen and Tooraj Jamasb22 Distinctive regulatory challenges in developing countries 506Debabrata Chattopadhyay and Vivien Foster

‘This is another phenomenal volume, complementing the previous Handbook of Electricity Markets well. The book takes on both classic and emerging issues in the economics of regulating electricity networks. It will be an essential guide for practitioners, teachers, and students alike.’