Regulation Of the Power Sector

21 Mar 2023 – 13 Jul 2023 | Online

course directors



Part-Time Professor

All you need to know about the power sector and power systems around the world

Power system regulation is never at a rest, and this is particularly true for the power systems of today.  In a world that is hungry for a reliable supply of electricity, regulation and reform of the power sector become the drivers for economic development. Several countries across the world have implemented energy sector reforms to improve their economic performances. 

This online course will highlight the connection between strategic governance of the power sector and economic growth. It will also provide the participants with the fundamentals for working in power sector regulation, whether in a regulatory commission, in a regulatory department within a company, or as a policymaker. 

Led by world-class experts, the course will give you a comprehensive understanding of the main concepts and ideas behind sector regulation from an engineering, economic and regulatory perspective. 

Participants will have exclusive access to the ebook version of ‘Regulation of the Power Sector’, edited by Ignacio Pérez-Arriaga for the duration of the course.


21 Mar 2023 – 13 Jul 2023





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What does the course offer?


We designed this training to give you a solid grasp of the fundamentals, and start your journey towards becoming an energy regulation expert.

In this course you will learn:

  • Fundamentals of energy system economics, introduction to different regulatory models and the restructuring process of the power sector
  • Approaches to the regulation of transmission and distribution networks as natural monopolies and principles for the allocation of regulated costs
  • Market design of competitive electricity wholesale markets and its complements, being ancillary services and possibly capacity mechanisms
  • Regulatory and technological challenges for the widespread inception of retail markets
  • The interaction between regulated activities and competitive activities in the power sector
What is the course structure?

Welcome live class: 21 March 2023, 2 – 3 pm CET


Week 1: Regulatory models for energy systems

  • Energy services pricing: from regulated costs to price competition: Cost-of-service regulation. Incentive regulation. Competitive bidding. Market competition
  • Energy systems’ governance: activities, structure, and stakeholders’ roles: Unbundling. System and market operation

Live class 1 with Carlos Batlle (FSR/MIT): 23 March 2023, 2 – 3 pm CET

Week 2: Fundamentals of energy systems economics

  • Centralized versus market-based planning: Costs’ characterization: investment, average and marginal costs. Cost minimization versus profit maximization
  • Basics on energy contracts: Physical versus financial contracts

Live Class 2 with Pablo Rodilla (Comillas Pontifical University): 30 March 2023, 2 – 3 pm CEST

Week 3: Cost allocation methodologies

  • Practical case example of cost allocation: Discussion of a real life (non-energy related) case example of cost allocation
  • Cost allocation theory: Efficiency and equity. Long-run marginal costs. Residual costs

Live Class 3 with Carlos Batlle (FSR/MIT): 13 April 2023, 2 – 3 pm CEST


Week 4: Pricing electricity generation

  • Investment and operation planning: From central planning and operation to wholesale markets
  • Energy markets design elements: Market-based economic scheduling: Market models, bidding formats and clearing algorithms

Live Class 4 with Carlos Batlle (FSR/MIT): 20 April 2023, 2 – 3 pm CEST

Week 5: Complements to energy markets: ancillary services and capacity mechanisms

  • Flexibility markets: Intraday, reserves and regulation markets.
  • Capacity and RES-support mechanisms
  • Design elements of capacity and RES promotion mechanisms

Live Class 5 with Pablo Rodilla (Comillas Pontifical University): 27 April 2023, 2 – 3 pm CEST

Week 6: Leading Expert Webinar on current regulatory challenges for the wholesale electricity market

Leading Expert Webinar with Alberto Pototschnig (FSR): 4 May 2023, 2 – 3 pm CEST


Week 7: Interplay between transmission and generation

  • Locational pricing: Fundamentals of nodal (and zonal) pricing.
  • Regulatory treatment of transmission investment planning: Golden rules, net-social welfare maximization

Live Class 7 with Pablo Rodilla (Comillas Pontifical University): 11 May 2023, 2 – 3 pm CEST

Week 8: Regulated revenues and cost allocation

  • Remuneration mechanisms for distribution: Cost-of-service, RPI-X, TOTEX
  • Network costs allocation: Transmission and distribution tariffs

Live Class 8 with Carlos Batlle (FSR/MIT): 18 May 2023, 2 – 3 pm CEST

Week 9: Leading Expert Webinar on EU Electricity Network Codes 

Leading Expert Webinar with Leonardo Meeus (FSR): 25 May 2023, 2 – 3 pm CEST


Week 10: End-user tariffs

  • Principles and basic tariff structures: Efficiency & equity. Additivity, components.
  • Time and locational granularity: Dynamic, TOU, fixed.

Live Class 10 with Carlos Batlle (FSR/MIT): 1 June 2023, 2 – 3 pm CEST

Week 11: Retail markets

  • Business models: Retail activities, stakeholders’ roles.
  • Consumer protection: Data management, switching, vulnerable customers

Live Class 11 with Carlos Batlle (FSR/MIT): 8 June 2023, 2 – 3 pm CEST

Week 12: Leading Expert Webinar on Energy Communities 

Leading Expert Webinar with Sabine Löbbe (Reutlingen University): 15 June 2023, 2 – 3 pm CEST


Week 13: Regulatory Authorities

  • Case study on regulatory authorities

Live Class 13 with Leigh Hancher (FSR): 22 June 2023, 2 – 3 pm CEST

Weeks 14-15: Buffer weeks to work on final papers

Week 16: Final session

Final Live class with Carlos Batlle (FSR/MIT): 13 July 2023, 2 – 3 pm CEST

Your learning experience

The course participants will work individually and in groups on specific tasks – all real-life cases and issues.

Start of course
Welcome class: Tuesday 9 May 2023, 12-13 PM CEST

Intro Class: Monday 22 May 2023, 2-3 PM CEST

Block 1:

  • Understand the perspective, challenges and approaches of energy access and its correlation to the many facets of development.
  • Dates: 15 – 29 May 2023

Live class 1: Monday 29 May 2-3.30 PM CEST: A view on challenges and experiences on the provision of energy access by practitioners.
Moderator: Ignacio Pérez-Arriaga (African School of Regulation); panellists: Julio Eisman (Universal Energy Access Lab MIT & IIT-Comillas), Eduardo Sánchez (Ministry of Economy, State Government of Nuevo Leon Mexico)

Block 2:

  • Learn the different elements of the power sector and the similarities and differences between developed and developing countries. Understand the various electrification pathways such as grid extensions, stand-alone systems and microgrids.
  • Understand how the power sector is regulated and the various regulatory instruments used.
  • Dates: 30 May-17 July 2023

Office Hours:

  • Monday 5 June 2-3 PM CEST: African School of Regulation (ASR) Team
  • Monday 12 June 2-3 PM CEST: Ignacio Pérez-Arriaga (ASR) & Pippo Ranci (FSR)
  • Monday 26 June 2-3 PM CEST: ASR Team
  • Monday 3 July 2-3 PM CEST: ASR Team
  • Monday 10 July 2-3 PM CEST: Andrés González

Live class 2: Monday 17 July 2-3.30 PM CEST: Electricity as an enabler of development; demand growth
Moderator: TBD; panellist: Sumaya Mohamed (Power for All)

Summer Break: 18 July – 30 August 2023

Block 3:

  • Study the financing mechanisms and business models of the different approaches of providing electricity access. And how regulation can be adapted to provide universal access to energy
  • Dates: 1 September – 3 October 2022

Office Hours:

  • Monday 4 September 2-3 PM CEST: ASR Team
  • Monday 11 September 2-3 PM CEST: Santos Díaz Pastor (Comillas University)
  • Monday 18 September 2-3 PM CEST: Cathy Oxby (Africa GreenCo)
  • Monday 25 September 2-3 PM CET: TBC

Live class 3: Monday 2 October 2-3.30 PM CET: Achieving compatibility between electrification planning, market freedom, universal access, and sustainability of electricity supply.
Moderator: Ignacio Pérez-Arriaga (ASR); panellists: TBD

Block 4:

  • Understand the challenges, technologies and business models of clean cooking solutions in developing countries.
  • Dates: 4 – 10 October 2023

Office Hour:

  • Monday 9 October 2-3 PM CET: Julio Lumbreras (School of Industrial Engineering)

Block 5:

  • Conclude the learnings and discuss strategic issues of energy access.
  • Dates: 11 – 16 October 2023

Live class 4: Monday 16 October 2-3.30 PM CET: Current efforts and perspectives in universal energy access.
Moderator: Ignacio Pérez-Arriaga (ASR); panellists: TBD

 Course ends 31 October 2023

Who is this course for?
  • Representatives from National Regulatory Authorities 
  • Professionals from the regulatory departments of energy companies such as Transmission System Operators and Distribution companies for electricity or gas, power generators or gas suppliers 

No formal background on energy regulation is required.

The course will be given in English, with an option of French, Portuguese, and Spanish subtitles for the video lectures.


At the end of the course, the participants can earn a Certificate of Attendance, a Certificate of Completion or a Certificate of Excellence, depending on their performance and engagement throughout the course.  


Fees and cancellations

Each year, the Florence School of Regulation – Energy and Climate (FSR Energy & Climate) awards scholarships for a wide variety of training courses targeting a broad audience of professionals and academics.

Applications will be assessed by a Selection Committee of FSR members on a yearly basis. The successful candidates will be informed by end of February 2023 and will be provided with all relevant information on how to enroll in the online course or residential training of their choice.

Send your application by 31 January 2023.

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Course Facilitator

Elena Bondesan