New tools and business models for power distribution system operators (DSO) will be critical for the success of the energy transition. The Union of the Electricity Industry (Eurelectric) is calling on EU Member States and Regulators to speed up the development of fit-for-purpose DSOs when implementing the Clean Energy Package. This process will require clarification of a number of legislative provisions that have been left unclear and uncertain.
11 years from now, the European power sector will look very differently than it does today. By 2030, more than half of all electricity is expected to come from renewable assets and the recently agreed transport legislation will bring more than 40 million electric cars on road in the same period, according to European Commission estimates. At the same time, the amounts of connected electric heat pumps, batteries and other grid edge technologies are expected to rise steeply as well.
These developments will result in a much more decentralised electricity system and require the European power distribution companies to move way beyond their traditional role of ensuring network connection and reliability.
The Clean Energy Package leaves several provisions concerning the new activities of DSOs open to the national interpretation of Member States and scrutiny of national Regulators. A uniform implementation across Member states is important for companies operating in several countries and regulatory barriers to innovation should be minimised.