Electric Power System Transition and the “Polluter Pays Principle”

Incumbent power generation and distribution get disrupt by variable renewable electricity supplies. As spontaneous default position is accepted that the disruptors (renewable energy producers) are responsible for the impacts they occasion on established systems. Mostly is added: renewable energies should pay the expenses for systems adaptations necessary to absorb their growing success. This first-hand position is challenged by the “polluter pays principle”: because the incumbent power systems are not sustainable, they must cede and adapt to the requirements of the sustainable renewable ones and pay the transition expenses. The opposite positions are documented with value-price gaps on climate, fossil fuels, and renewable energies. A comprehensive view on liberalized electric power systems frames the proposed dichotomy of power producers in “commanded generation plants” and “independent generators of own power (IGOP).” At prevailing conditions, IGOP power is inferior to and not competitive with commanded power; moreover, IGOP disrupt the functioning of commanded power. However, IGOP make up the core of sustainable low-carbon electricity systems. This enigma challenges the policy and politics of electricity sector transition. No detailed regulations are recommendable before clarifying the strategic positioning of the various participants.