Policymakers can encourage
the development of more resilient infrastructure by creating a legal and
regulatory framework that clearly defines the required levels of resilience for energy
infrastructure. Legal frameworks are critically important for natural monopolies,
such as transmission systems and other critical system functions. They guide the risk
management and adaptation measures that should be incorporated into operational
and investment decisions for new and existing assets. Although risk management
measures have become better defined, adaptation measures for responding
to evolving risks often lack regulatory guidance. Common goals or metrics for
adaptation are too few or too limited, and the same is true for specific resilience
responses, both hard and soft. Similarly, it can be hard for all stakeholders to agree
on how much resilience is sufficient, and on how increased resilience can be related
to the revenue stream and thus support investment. Transparent and predictable
frameworks are needed to ensure the right levels of resilience. This will send clear
signals to the energy sector and stimulate financing for resilience