European Electricity Transmission System Operators (TSOs) are currently engaged in an unprecedented transition as they operate in an increasingly complex, digitalised, decentralised, volatile and uncertain environment. Achieving the ambitious European objectives of climate neutrality will require a steep acceleration in the development and integration of innovative solutions in the power system.

While TSOs already deploy various innovative technologies, accelerating the development and integration of innovative solutions into the transmission grid is not consistently matched by their national regulatory frameworks. Classic incentive regulation driven by cost efficiency may lead to innovation being sacrificed for cost reduction.

Forward-looking regulatory frameworks should not solely focus on already mature solutions which need to be deployed on a wider-scale but should instead adopt a more holistic view to innovation across the various stages, from early RDI programs to innovation uptake. Doing this will ensure that TSOs and society as a whole benefit from the integration of the most efficient solutions not only in the next decade, but also in the following ones as the planning and operation of the system become even more complex.

Read the position paper