Strategy vis-à-vis incentive regulations on investments applied in the French energy market

Project Details

Geography: France
Client: Confidential French Service Company
Dates: February 2021 – March 2021
Technology: Gas storage & regulatory

Project Description

Annualy, around €15 billion are invested in electricity and natural gas networks in France. The Client is a service company active in this market, providing investment planning and implementation support to French regulated entities. With regulatory emphasis intensifying on investment incentives, they engaged Paris Infrastructure Advisory (PIA) for strategic support, aiming to:

● Understand how incentives affect their clients and the services they provide these clients;
● Incorporate regulators’ decision-making processes and incentive regulation parameters into their service cycle to generate higher value for their clients;
● Revamp their business development strategy to increase their market share in regulated investments.

Key Takeaways

Regulatory incentives reverberate beyond regulated operators, affecting service providers as well. However, these effects may not always align with regulators’ intentions, leading to unintended consequences.

Our Building Blocks

  • Incentive regulation