E.DSO advocacy paper – DSO Recognition: A call to reassess EU Funding priorities

E.DSO publishes an advocacy paper, crafted to reassess the EU funding landscape for Distribution System Operators (DSOs) in the forthcoming Grid Action Plan. The document proposes a novelty solution — the establishment of “The Decentralised Grid Facility” (DGF). This initiative aims to fill existing funding gaps in decentralised energy infrastructure, outlining a clear roadmap for the DGF’s independent operation, budgetary options, and a phased rollout from 2025-2027.

Regulatory clarity for Member States is also identified as a crucial aspect, urging a holistic view of the energy value chain. The proposal recommends balancing support for electricity generation with proportional backing for electricity grids in new funding opportunities. It also suggests incorporating provisions in the Common Provisions Regulation (CPR) to ensure equality.

The third argument highlights the need to ensure grants benefits for regulated businesses (DSOs). Challenges in incentive models across EU Member States call for regulatory mechanisms to support DSOs. Recommendations include recognising regulatory depreciation, expanding financial incentives, and aligning EU programs for reliable support.

The document concludes with potential insertions for the Grid Action Plan (2023), advocating for the DGF, regulatory clarity, and grant benefits for regulated businesses. The proposal encourages a preparatory phase, a public consultation, and a pilot program for the DGF, while also stressing the importance of a balanced approach in the CPR and guidelines for DSO incentives.

Please download the document to read its full content.

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