E.DSO, as the trusted voice of the leading European Distribution System Operators (DSOs) industry and the representative of more than 350 million connected customers, welcomes the Fit for 55 Package as an instrument to equip the EU’s economy for climate neutrality.
We appreciate that DSOs have been recognised in the Fit for 55 package as important actors in the energy transition responsible for the integration of renewables and the management of an integrated energy system with increasing electrification and customers at its core. Nevertheless, we consider the package must recognise a more relevant role of DSOs within the new regulatory environment to facilitate the energy transition and to contribute to the EU’s climate objectives.
In the light of the above considerations, we would like to outline the following policy recommendations:
- The energy efficiency of electricity distribution grids should be managed in a holistic manner which places emphasis on the enormous potential of smart grids and local system integration. Energy efficiency of networks should not be defined exclusively by network losses.
- The new regulatory framework would only achieve the EU climate ambitions if it incentivises Member States to encourage investments in electricity distribution networks with the aim of facilitating the integration of renewable sources while supporting the security and stability of the network. In this sense, more dynamic permitting procedures for new electricity infrastructures should be equally promoted.
- A modal shift in transport towards electric vehicles requires boosting the momentum in the connectivity of the grid, with the introduction of new targets for the electric recharging infrastructure, but also in its capacity to sustain the electrification of mobility.
In light of the above, E.DSO would like to make some suggestions for regulatory amendments to the four legislative files that most directly impact electricity distribution system operators:
- the Renewable Energy Directive (RED),
- the Energy Efficiency Directive (EED),
- the Regulation on Alternative Fuels Infrastructure (AFIR) and
- the Directive on the Emissions Trading Scheme (ETS).
Those amendments are based on the well-thought-out reflections of E.DSO experts and we remain at policy makers’ disposal to discuss further in detail the development of an energy system fit for the EU’s climate objectives.