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Energy Day and the 2nd Scientific Conference of SAEE: “Energy Economics is facing very dynamic challenges”

28.11.2018Comments are closed.,

On Thursday, 22 November 2018, two events unfolded at the Faculty of Economics, University of Ljubljana. The purpose of the first event, Energy Day, was to discuss energy economics and regulation issues with a focus on electricity and gas economics in connection with the regulatory framework of the European Union and Slovenia. The programme then continued with the SAEE Conference where students’ and researchers’ papers on the topic of energy economics were presented.

Many interesting topics were introduced in the first part, starting with comments on the single energy market being for the benefit of all EU consumers, where it was highlighted that integration of the EU gas market is working better and better, but many things still need to be done, including addressing the remaining barriers to market integration, the creation of regional market integration, and others.

The presentation continued with an introduction to pipelines and considered an example about construction and the production function and total cost function. Various solutions are available, but they have to fit the constraints. One of the many is LNG (liquefied natural gas), which needs smaller anchor markets because they require fewer reserves.

Electricity infrastructure development in Europe was another topic covered at the event. It was concluded that the legal framework needs to be optimised, but the problem is that this takes considerable time. Simultaneously, companies face the issue that not all players are necessarily striving to meet the same objectives. This might be partly resolved by changing the governance. The biggest question here remains how to ensure the objectives are aligned.

Conference participants had an opportunity to examine some outlooks for the following regulation period, which are based on balancing the regulatory framework. New challenges have been discovered in the area of return on assets, but there are also many challenges for the regulators. They will have a major impact on balancing the regulatory framework. A clearly important part of the regulation is the new approaches and role of innovation and opportunities for operators at the same time. That is why it is necessary to think differently and be open to new changes.

In the afternoon, the programme continued with the SAEE Scientific Conference where 16 papers on the topic of energy economics were presented and the best two were given awards. The author of the first award-winning paper, Karolina Koren (mentor Professor Nevenka Hrovatin), researched the field of energy efficiency, more precisely the topic of building energy cards and the impact on prices. Jan Jeriha (mentor Professor Andrej Gubina), the author of second award-winning paper, researched the topic of the behaviour of business and consumers with a focus on the distribution system. All 16 papers are available on the web.

Energy Economics is facing very dynamic challenges, requiring us to really be open to changes and think differently. Some important fields were covered during these two events and much awaits to be done but, as we heard, we are thinking in the right direction.

Anja Puc, Efnews

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