Grid modernisation a policy priority – ISGAN

Four key messages and areas of action for energy policy makers to create the conditions for efficient and forward-looking grid planning processes are proposed by ISGAN.

As is widely acknowledged, modernisation of the grids and the distribution grids in particular is a top priority to go hand in hand to integrate the rapidly growing renewable energies and ensure global targets towards net zero can be met.

In a new ‘policy brief’, which was prepared for the Clean Energy Ministerial meeting in Brazil in October, ISGAN points to the urgency of making distribution grid modernisation a policy priority with long term planning meaning to act now.

Key actors are obviously national government ministers and regulatory bodies but others are local/regional governments, grid owners, the DSOs and other energy sector players such as TSOs, system planners and energy suppliers among others.

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Message 1 that ISGAN intends to convey is that confidence to invest in smart distribution grids requires reliable and supportive legal and institutional conditions for a long-term planning horizon.

This requires ensuring a predictable and robust legislative and regulatory framework with a clear legal foundation that gives highest priority to rapid smart grid implementation that transcends election cycles and links grid planning to long-term targets.

The roles and mandates for all actor groups, including public and private grid owners, also needs to be clarified.

Message 2 is that the planning of the MV and LV grids demands broader coordination across key actors in the energy sector.

Thus a shared language and vision among actor groups should be promoted to ensure common understanding and engagement should be facilitated by creating platforms for long-term planning between actor group.

Message 3 is that long-term planning must be adapted to new complex realities, shifting from traditional master plan approaches to forward-looking, agile and scenario-based approaches.

Incentives for adaptive planning practices should be implemented and consideration made of innovation scenarios, for example the leveraging of technical and market-based flexibilities.

Finally, message 4 is that policymakers should ensure the availability of sufficient knowledge and data infrastructure to support agile planning and resilient operations.

This includes building a knowledge base for planning of smart grids and promoting data sharing along with enabling global exchange on prioritising investments in them.