New guidance for expanding and smartening EU grid for renewables

Guidance published on the integration of renewable electricity in Europe’s grid highlights the need for expanding grid capacities and developing a more flexible and smarter infrastructure.

This need is at both the distribution and transmission levels and is necessary to integrate an increased amount of variable renewable electricity and distributed energy resources such as electric vehicles (EVs), PVs and heat pumps.

For example, flexibility in the EU electricity system needs to almost double by 2030 compared to 2022.

Underlying these needs is the requirement for information and for example, consumers need to have useful information on renewable-based electricity penetration in the grid, in a transparent way and close to real time, to allow them to adjust their consumption accordingly.

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EU provisions aim to ensure this by increasing the granularity of information on the share of renewable electricity in the grid to the public, in an accessible way, the guidance explains.

Specifically member states are obliged to require TSOs and, if available, also DSOs to make available data on the share of renewable electricity and the greenhouse gas emissions content of the electricity supplied in each bidding zone in intervals equal to the market settlement frequency but of no more than one hour and to ensure that DSOs have access to the necessary data.

They also are required to provide incentives for upgrades for smart grids and to ensure that DSOs make available anonymised and aggregated data on the demand response potential and the renewable electricity generated and injected into the grid by self-consumers and renewable energy communities.

With the increasing number of active customers producing their own electricity, DSOs need to become more proactive service providers to ensure the optimal operation of the grid and serve customers cost-effectively. For this to happen, it is crucial that DSOs have the necessary information on the available renewable electricity in their system.

In member states where smart metering systems are deployed, those states are responsible for setting the rules for the management and exchange of data, i.e. metering and consumption data as well as data required for customer switching, demand response and other services.

It is essential that the member states stipulate in their national framework how DSOs will be able to obtain the data from market actors such as aggregators, electricity suppliers and self-consumers, energy communities, metering companies, etc. on the renewable electricity.

Where such data constitute personal data, it is crucial that the access and processing of this data is ensured in accordance with the general data protection rules.

Given the large diversity of the DSOs across the EU and the different levels of development of data collection models deployed, it is important that member states put in place or adjust the existing mechanisms for ensuring effective cooperation arrangements amongst the DSOs and TSOs at national level for facilitating data collection.

As regards the obligation for member states to provide incentives for upgrades for smart grids, it is complemented with the requirement in the Electricity Directive – and further amplified in Europe’s grid action plan – on the development of distribution systems to be based on network development plans to be conducted every two years by the DSOs and which must be ensured by member states and national regulators.

Member states with a high need for distribution grid modernisation and local smart grid deployment should consider available options to increase allocations under the EC’s Cohesion policy funds for this sector.

DSOs and TSOs, with support from the respective member states, also are encouraged to consider partnering for proposing candidate Projects of Common Interest on smart electricity grids.