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WP6 Markets and regulation

Tariffs, taxes and subsidies form an important part of the total incentive-scheme to impact end-user behaviour. Moreover, they are important in regulating interactions between specific parts of the energy system. Designing tariffs, taxes and subsidies are deeply rooted in economic welfare theory and they should be introduced implying lowest possible distortion in the economy. The aim is to provide a robust framework for companies to act within and to ensure the right incentives structure for the desired development of the energy system. The WP will be conducted in close collaboration with WP4 on the integrated energy system. The WP will include:

  • 6.1: Analyses of tariff structures that provide better incentives for an efficient use of the gas system
  • 6.2: Welfare economic analyses of tax and subsidy schemes that support integration of gas with heat, power and transport systems and at the same time provide the right incentives to ensure an efficient and cost effective use of energy resources
  • 6.3: Evaluation of market designs in order to integrate new types of gas from decentralised production
  • 6.4: System consequences of a closer coupling between markets for gas, heat and power – this will include a close collaboration with WP4
  • 6.5: Recommendations of policies to promote independence of fossil fuels in an efficient and cost-effective way

The analyses will take into account the EU energy regulation as well as energy tax and subsidy schemes in other European countries, which increasingly have implications for the Danish energy markets and actors due to closer integration between European Energy markets and regulation.

Participating partners:

  • Prof. P.E.Morthorst
  • DTU Management Engineering
  • HMN Naturgas
  • Nature Energy
  • Ørsted
  • Danish Energy Association
  • Energinet.dk
  • Danish Energy Agency
  • Florence School of Regulation
  • Exeter University
  • Delft University of Technology