Intelligent Grid: Unfinished Regulation in the Third EU Energy Package

Abstract

The introduction of intelligent grids and/or intelligent metering systems promises much from the perspective of the three pillars of European law and policy: security of supply, sustainable development and competition. The analysis in this article mainly covers the legal provisions of the third energy liberalisation package of the European Union (EU) and the regulatory challenges connected with the introduction of intelligent grids and/or intelligent metering systems. Legal regulations in the new liberalization directives seem to be ‘unfinished’ as the development of intelligent grids and/or intelligent metering systems is dynamically evolving. The author argues that the uncertainty of future legal provisions should not be considered as a barrier to intelligent grids and/or intelligent metering systems deployment and presents his prognosis of the future development of legal regulations in this respect. Furthermore, the author suggests that the deployment of smart grids will change many aspects of regulatory policy, which will have to evolve towards ‘output-based regulation’.