Emerging technology in the energy sector

Areas of focus included:

• risk of partial capital recovery – the claimed problem is that emerging technologies may increase the risk that electricity networks become stranded
• efficient investment incentives – the claimed problem is that there may be inadequate investment incentives where investments:
  • deliver benefits that are split among different parties along the value chain or that arise beyond the regulatory period
  • face wider market or political risks to full cost recovery
• regulatory treatment of cashflows from emerging technologies.