Bremen Energy Working Paper No. 11

Nele Friedrichsen analyses governance forms for future smart grids. Some technical aspects of electricity supply require thoroughly coordinated reactions on a very short time scale. If such aspects are critical to the performance, such as stable system operation in electricity, centrally coordinated operation is beneficial. Importantly, a central operator may have potential and incentives for discrimination. Int his paper she proposes an independent system operator as optimal solution in the trade-off between coordination need and discrimination concerns.

The paper can be downloaded here