Management and Oversight of the Electricity Market: Challenges and Opportunities

7 October 2024

The Role of Power Regulation in Energy Transition

At the annual conference of the National Energy Authority, Hanna Björg Konráðsdóttir, Director of Power Regulation, discussed the importance of power regulation in times of energy transition and how it can support government goals for carbon neutrality and increased energy security. She pointed out that the Icelandic energy market stands at a crossroads, both globally and in Europe, where the energy crisis has had a major impact on energy prices and competitiveness.

Hanna Björg Konráðsdóttir's Presentations can be found here: Hanna Björg's Presentations

Hanna Björg explained how power regulation ensures equality in the market, especially as new and smaller players enter. She emphasized the importance of maintaining transparency and competition, which benefit both consumers and businesses. There was also discussion about the role of the institution in handling complaints and disputes that arise in the market and how government agencies need to be vigilant to protect the rights of all parties.

The Importance of Power Regulation for the Future

Hanna Björg pointed out that the power market is rapidly evolving with innovations, such as increased electric vehicle adoption, and that power regulation is important to ensure fair access to infrastructure such as power lines and charging stations. She specifically mentioned that the publication of information from the National Energy Authority has increased transparency and been very helpful for companies relying on accurate information about energy prices, power plant locations, and charging stations.

Four Main Goals of Power Regulation

Hanna Björg outlined four main goals of power regulation, all aimed at supporting the energy transition and future development of the power market:

• Increased production of green energy.
• Ensuring investment in transmission and distribution systems.
• Enhancing competition and an active market.
• Supporting flexibility in energy use, including by encouraging better energy utilization and promoting the activity of small producers.

The Power Market is at a Crossroads

The power market faces challenges, including due to unstable energy pricing in Europe. She stated that it is necessary to adapt the regulatory framework to new challenges, ensure adequate infrastructure development, and promote market competition. She also mentioned the importance of consumers being active participants in the system, including through innovation technology such as smart meters and energy storage.

The Future of the Electricity Market Hanna Björg concluded her presentation by discussing the importance of continuing to promote transformations in the electricity system, with a focus on innovation and investments in the transmission and distribution network. She emphasized the development of a market that is both flexible and sustainable, creating a stable electricity supply and ensuring the competitiveness of Icelandic society.

Slides by Hanna Björg Konráðsdóttir can be found here: Hanna Björg's Slides

Recording of the meeting is accessible here: YouTube recording