The role for energy policy and regulations in shaping the energy transition is fundamental. However, many of the details of policy and regulation are yet to be determined. There will be winners and losers from policy decisions and the stakes are high. Our policy expertise and modelling capability can help policy makers and stakeholders navigate the implications of various policy and regulatory alternatives.
Opportunities
The decarbonisation of the world’s energy systems is a “once-in-a-lifetime” revolution. The pathways for policy are numerous, and the implications vast. Decisions made in policy and regulation could direct the deployment of capital investments, strand investments of legacy assets, foster new industries and jobs, and will ultimately be paid for by the consumer in one way or another.
Challenges
Energy systems are complex, and it is difficult to understand trade-offs and second-/third-order effects of any policy or regulatory decision. Policy makers, industry stakeholders and consumers alike need to understand the full consequences of the policies to avoid costly misallocation of resources and negative unintended consequence.
Expertise
Our combination of energy, modelling, and policy expertise makes us well placed to support clients on policy and regulatory issues. We help policy makers and industry determine the major policy decisions, inform investment strategy, and engage in the public policy debate. Using our fundamental models of the energy system, we simulate bespoke scenarios for the policy and regulatory alternatives to quantify their implications for the major stakeholders.
Key references
Over the past years, we have:
- quantified the implications of different levels of renewables used to reach Net Zero emissions for the UK’s National Infrastructure Commission
- provided the modelling underpinning the Energy Infrastructure Roadmap of New South Wales, Australia
- supported the UK’s Department of Business, Energy and Industrial Strategy (BEIS) with modelling to show the effect of interconnectors on pan-European carbon emissions, resulting in policies announced in the 2020 Energy White Paper
- supported a Scandinavian utility with an assessment of future market design alternatives, influencing their business strategy and policy engagement efforts
Advisory Service
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