The impact of extended decision times in planning and regulatory processes for energy infrastructure

Highlights 

• Quantifies how design of regulatory system contribute to project delivery timeframes.
   
• Case study of Ireland system for delivery of electricity infrastructure projects.
   
• Models impacts of renewable project delays on electricity prices, emissions, etc.
   
• Case study shows impact on wholesale electricity prices as much as 10%.
   

Abstract

Effective planning and regulatory processes ensure orderly energy systems. Often, decisions are not made within mandated timeframes and discrete approval processes are infrequent. A given delay may be compounded where multiple approval processes exist in sequence. These factors can negatively affect system costs and, ultimately, consumer welfare. We show that delays have meaningful impacts on electricity prices, system emissions, infrastructure investment and system operating costs. Our numerical simulation of data from Ireland shows that wholesale electricity prices are up to 10% higher and CO2 emissions up to 4% higher, attributable to delays associated with planning and regulatory approvals.