E.DSO reaction to Electricity Market Design (EMD) reform

On 11 April 2024, the European Parliament adopted the Electricity Market Design (EMD) measures. E.DSO recognises and welcomes the final text. First, it is evident that significant investment is crucial for the development of the distribution network to enable the whole power sector transition. The revised market design now provides more of needed regulatory stability in this area.

E.DSO is particularly pleased with the specific improvements to the text, which align with the principal arguments advanced during its advocacy outreach:

  1. Anticipatory investments: Anticipatory investments are essentially proactive financial commitments made to ensure the electricity network is ready to meet customer needs when they arise, differentiating them from standard investments which are typically reactionary, addressing immediate requirements.
  2. Flexible Connections Agreements: E.DSO advocated the adoption of flexible connections as a very effective solution because they enable DSOs to connect additional customers, commonly those with generators or storage systems through active, often real-time, management of network loads.
  3. Dedicated measurement devices (DMDs): The explicit mandate for notifying DSOs when these devices are used, specifically for flexibility and observability and not billing purposes, is crucial. This change is appropriate as these devices are intended to indicate the activation of flexibility services by a specific device, without accounting for other network impacts.

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