Page 43 - European Energy Innovation - Spring 2016 publication

Spring 2016 European Energy Innovation 43

DSOs

to other networks are very few, through a sound regulatory unnecessary extra costs. Any proposal
distribution networks are usually methodology covering both traditional of creating new regulated entities such
characterised by a large number and innovation-related assets. as separate and regulated data hubs
of customers, self-generators and Regulatory schemes must incentivise should be carefully assessed to make
larger-scale (distributed) generators. DSOs to be efficient, to deliver sure that the benefits accruing from
The connection of a greater number long-term investment according to a new solutions are truly superior to any
of generation resources, such as predictable and consistent regulatory resulting increase in the cost and/or
renewables, to satisfy demand requires framework and to make efficient complexity of the system.
substantial growth in the size and trade-offs between active system
complexity of distribution grids. management and physical grid CONCLUSIONS
reinforcement. DSOs are key players in enabling
As the technical contact point for a successful energy transition. The
customers, DSOs are in a unique Performing these new roles will evolution of the energy sector towards
position to meet their needs and evidently lead to extra costs related, an efficient and smarter system will
choices in terms of connection, inter alia, to the introduction of smart only be possible if DSOs play an
quality, security and continuity of grid solutions and the increasing active coordinating role between
power supply. Hence, DSOs are complexity of data handling. The all market participants, facilitating
ideally suited to manage very large new energy reality requires energy markets and services in a neutral and
numbers of connection points and regulators to ensure that all these non-discriminatory manner. For this
to balance local grids. DSO activities changes benefit customers and other to happen, DSOs must operate within
must therefore be separate from - and network customers. Policy, regulations, a consistent regulatory framework,
complementary to - TSO ones, bearing roles and procedures have to be set where competition is encouraged and
in mind that DSOs are the only players taking into account efficiency and non- a level playing field is guaranteed for
capable of exploiting the benefits discrimination. The new setup must all market participants. l
of a local approach in terms of grid make sure that costs are minimised
management and customer support. whilst competition is nurtured and a Contact details:
level playing field is guaranteed for all Anamaria Olaru
RECOGNISING AND INCENTIVISING market participants. Press & Media Relations
THE NEW ROLE OF DSOS Tel.: +32 2 515 10 71
To meet the challenges ahead, national Amongst growing concerns about www.eurelectric.org
energy regulators must make sure high electricity tariffs across the EU,
that DSOs are properly incentivised it is important to limit and avoid any

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