Radical innovation in the energy sector and the impact on regulation

The electricity sector is in a transition towards a Smart Energy System where the roles of private and institutional actors are evolving. This work deals with the influence of some technological innovations on the regulation of the energy sector. It identifies the main radical innovations in the energy market and analyses the legal and related non-legal obstacles that may impede the empowerment of energy consumers. Some recommendations are provided to ensure that consumers are empowered and can benefit from these new technological innovations. The recommendations relate to an accurate definition of prosumers and active consumers, the integration of demand response, the evolving role of distribution network operators and the birth of peer-to-peer trading.