Electricity distribution network operation services - An analysis on market dynamics from the service provider's perspective

Market mechanisms behind electricity utilities in the field of network operation services have earlier been studied with a focus on experienced costs, risks and benefits. However, the corresponding analysis is in this study performed for the counterparts of electricity utilities, that is, the service providers. The theoretical framework of the study is based on transactional cost economics. Further, findings of an empirical North-European service provider survey are presented and analyzed. Some reasons behind the identified market gap of control room services are discussed and future market development is examined. As one result of the empirical survey, service providers in the field of electricity distribution seem to be generally positive to the business model of offering control room services.