Developing electricity distribution networks and their regulation to support sustainable energy

A more sustainable energy system will alter the current patterns of electricity demand and generation. This means technical, commercial and regulatory change for electricity network systems such as distribution networks. This paper traces the links in Great Britain between changes in energy policy since privatisation, changes in the objectives of the electricity regulator and changes in the objectives of the distribution networks and their owners, the distribution network operators (DNOs). The paper identifies tensions in regulatory policy and suggests reforms to the regulatory framework to support a lower-carbon future. DNOs are licensed regional infrastructure providers. In addition to their network services, the network companies can potentially deliver public policy objectives to facilitate heat infrastructure, energy-efficiency and distributed renewables. The paper identifies the potential benefits of a novel approach to facilitating renewable energy feed-in tariffs for electricity and heat, using DNOs.