Investments in power networks and alternative measures

Measures taken with respect to production and consumption are often alternatives to investments in the power networks. While decisions about production and consumption are taken in the market, the network operation is subject to monopoly regulation. In the central network, Statnett's commission is to invest on the basis of socioeconomic profitability. There is a need for much better coordination between network investments and other measures in the power system. The price signal from the market and general tariffs are not sufficient to realize optimal solutions, and there is a need for a ''visible hand'' that can contribute to the realization of the solutions that are the best in each individual situation. It is desirable to create processes and incentives that realize the best solutions, independently of dealing with network investments, local power production or other measures.