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The Regulation of Microgrids in Liberalized Electricity Markets in the EU and East Asia

Katelijn Van Hende, Carmen Wouters


As electricity markets across the globe are being partially or fully liberalized and are opening their markets to competition, electricity trading across borders is transforming national electricity markets into regional ones. This paper argues that integrating microgrids into future smart energy systems cannot only coexist with a shift towards regionalization, but can potentially reinforce it, as microgrids have the ability to operate on- or off-grid and can offer flexibility. After describing a few trends at the macro- and micro-level, this paper presents some concrete microgrid examples that are analysed within the regional markets of the EU and East Asia. The analysis is performed through a technical perspective from which policy drivers are derived and lessons are drawn for implementing microgrids into regionalmarkets. Governments should paymore attention to the importance ofmicrogrid connections to the distribution network and the central energy system and market as a whole and allow for the integration of the microgrid concept into the regulatory framework. They can do so by focussing on the characteristics of microgrids that can be designed as policy drivers: market liberalization, ownership, structure and connection.

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