Europe’s DSOs set out Green Deal infrastructure priorities for distribution grids

European DSO organisations DSO Entity, E.DSO and Eurelectric have set out the most pressing priorities for the distribution grids for action within the current European Commission.

These can be organised in two clusters in which concrete business cases/good practices should be developed, namely:

• investment, access to capital and the regulatory framework, including the need to enhance grid resilience, and
• build-out prerequisites including supply chain, staffing, permitting, etc.

Actions and concrete recommendations can then be generated for tackling by the next European Commission, which commences on 1 November 2024.

In a letter from the three organisations to the EC Executive VP for the Green Deal Maroš Šefčovič following their participation in a dialogue on Green Deal infrastructure, they reiterate the core role of DSOs in delivering on its objectives with most of the renewables being connected to the distribution grids and the increasing electrification of heating and mobility.

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Key messages they state include the need to accelerate investment by mobilising private sector capital for energy and improving funding opportunities for DSOs at the national and EU levels and in particular enabling anticipatory investments with a forward-looking energy regulatory framework and tariff regime.

Permitting procedures must be further simplified, especially for grid capacity additions and upgrades, and initiatives to tackle the supply chain challenge are called for, including greater cooperation between grid operators and manufacturers.

The focus on resilient grids also must be reinforced to guarantee the security of supply at times of increasing (cyber)security threats and extreme weather conditions.

Against this, general principles suggested for the future are:

• Ensure national implementation of the European provisions to provide grids with suitable conditions for the delivery of the Green Deal objectives.
• Introduce ‘grids mainstreaming’ to ensure that grid expansion is not lagging behind, but that their needs are considered in every new and revised energy and climate act.
• Ensure regulatory consistency by promoting widespread consistency in acts that help DSOs achieve their objectives.
• Build a successful EU Alliance for the Green Deal Infrastructure to prepare the infrastructure for 2050 climate neutrality.
• Combine all of the above into a strategic technical roadmap for the future that has the support of all stakeholders.

Given the short time horizon until the next European Commission and the need for two more dialogues to be organised by the time of the EC’s June election, fast action is needed, the organisations state in the letter.

With this short-term horizon, the focus should be on these most pressing topics and after each dialogue guiding principles and recommendations should be issued on the contents for each cluster that can be implemented within a timeframe and mechanisms for reporting established.

They also comment that the dialogues should involve all levels, European and national and should be complementary to other often more technical initiatives.