Thoughts on an Electricity System and Grid Paradigm Shift in Response to the EU Energy Transition and the Clean Energy Package

Olivier Lavoine, member of Confrontations Europe’s energy working group, analyses the electricity system and grid paradigm shift in response to the EU energy transition and the clean energy package*.

Highlights : 

  • The EU Clean Energy Package aims to facilitate the transition to low carbon energy
    system based largely on renewable energy sources, while furthering the completion of
    the internal energy market. The achievement of such “double goal” implies a profound
    paradigm shift in the way the electricity system is developed and operated.
  • The growth of distributed energy resources, on both the generation and demand side,
    cannot be neglected anymore. On the contrary, such resources connected to the
    distribution grids must be fully integrated and subject to grid codes that ensure a level
    playing field.
  • The operation of transmission and distribution grids must change and adapt to the new
    dynamics introduced by the growth of distributed energy resources. Transmission and
    distribution system operators must develop new coordination mechanisms to ensure an
    efficient balancing and preserve the security and continuity of electricity supply. Such
    coordination must not stop to real-time system operation but extend to grid planning
    and expansion.
  • More sophisticated network tariffs and new market players enabled by digital
    technologies are crucial to improve the active management of demand and simplify the
    balancing of the system.
  • These significant changes in system and market operation and in system development
    question the share of tasks and responsibilities between the different system levels
    (local, regional, national, European). In this respect, the creation of multinational
    control areas operated by actors that go beyond the remit of the single national
    companies has the potential simplify the coordination challenge and improve market
    functioning

*This article has already been published in the FSR-energy website.

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