Policy messages on Innovative Regulatory Approaches with Focus on Experimental Sandboxes to Enable Smart Grid Deployment

The urgency of transition of the energy system requires speeding up the innovation processes that will shape its future technological, economic and regulatory components.

As it is necessary to be quick, regulatory changes will often lag, what is identified as preferable pathways, but these changes could be accelerated through Regulatory Sandboxes, which are able to verify effects of new regulatory instruments before actual implementation.

All energy systems, whether vertically integrated or deregulated, have some sort of regulatory or market oversight. Some of these regulations have been long established and originate from stem out of initial structures created around the turn of the 20th century. However, as the electricity grid transitions towards a more decentralized structure, with deepened engagement of end-users (including consumers) and involvement of a wider variety of other stakeholders and service providers, there is a need to enable testing of new regulatory structures that can better support integration of advanced smart grid technologies and business models.

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