Smart grids after the third liberalization package: current developments and future challenges for regulatory policy in the electricity sector

The smart grid is a concept for the development of power distribution grids that offers great promise for the realization of the ambitious objectives of European Energy Policy. In its Third Energy Liberalization Package, European energy law has introduced the concept of intelligent grids and intelligent metering systems. A new directive of EPBD (energy performance of buildings) is to press ahead with this trend. At the same time work is underway at the European Commission and with European Regulators concerning standardization and the new shape of regulatory policy in the implementation stage. The EU legislation and regulatory policy of the National Regulatory Authorities will have to take into consideration the current trends in the modernization of the networks. Among other things, this means revising the existing regulatory model, and that will have to take into account the performance and output of industry networks.